Buying and Selling Real Estate
Do you have a burning desire to make money in real estate? Do you want to start buying properties today regardless of your credit and with little money down?
Remodeling homes for profit is more popular than ever as more people can afford repairs. Home remodeling has made remodeling to sell more competitive and is known as “a numbers game.”
Buy properties with no money down
Several classic methods are commonly used to purchase real estate with any down payment. There are an infinite variety of situations in a real estate transaction that could lead to a no down payment settlement. With the economy running so poorly right now, bank foreclosures are available for little to no money down.
The most common ways to get a loan with no down payment:
second seller: The buyer obtains a new first mortgage. This strategy is necessary for lenders approval, as the lender that is making the 90% loan will have to agree to allow the seller to repossess a second mortgage, then the seller finances the rest. For example, if the buyer has good credit, the buyer will have a better chance of being approved and if the buyer has a lower credit score, they may or may not approve.
Use one of the many low or no down payment programs out there: Many are intended for owner occupants, but some are available to investors. There are a few points to remember when buying an investment property with no money down by talking to the right lender. A key point is the comparison of the monthly payments with the expected rental income. If you are financing 100% of the purchase price, your payments will be higher. If you have a second mortgage payment to add to a first mortgage, your payment may be even higher. It is important to make sure that your rental income covers the full monthly payment.
Buying properties in bulk, using hard money to buy and rehab: When the home rehab is complete, you will get a new mortgage that will pay off the hard money loan. You may have to pay some of the money back when it comes to closing on the hard money loan, but you’ll get it all back when you refinance, so you’ll end up with no money out of pocket. This converts to not only a no down payment deal, but also a cash back at deal close.
Buying a house with bad credit
Bad credit loans are designed for people whose credit report is less than perfect. These bad credit loans will allow you to buy a house with bad credit. Typically, this would be anyone who has any of the following credit problems:
credit scores less than 620
bankruptcy in the last three years
foreclosure in the last four years
collection accounts, sentences or links
30, 60 or 90 days late in the last two years.
A bad credit loan is technically known as a subprime mortgage. These types of mortgages are more risky for the mortgage lender because of the borrower’s prior credit history. The basic concept of this type of mortgage is to give the borrower a second chance to prove their creditworthiness and eventually refinance the mortgage after establishing a perfect credit history for at least two years. Just remember, even if you have bad credit, you can still buy a home, but you will pay more than a borrower who has brilliant credit.
Conclution:
Buying and selling real estate is one of the most profitable ways to make money. Real estate is a very fast growing field of business, and many are learning how to turn the market in their favor. Even if you only get a little money to invest in real estate at first, that doesn’t mean you can’t follow through with your American Dream.