Can You Really Buy Property with NO MONEY DOWN?

Anyone can purchase property without having any cash, but it's not nearly as easy as the gurus proclaim. Can you do it even if you have bad credit?? Yes, but it's a whole lot easier to do it if you have good credit.

In fact, with good credit it's easy to get cash when you buy. Here's how you can get paid when you buy a piece of property.

Example: Property is for sale for $100,000.

1. You ask the owner of the property to give you a note for $30,000 secured by other property you own or even as an unsecured note (you can put a VA clause in the note allowing it to be moved back to the subject after the closing). 2. You get a conventional loan for 75% of the sales price. 3. You ask the seller to pay your closing costs. 4. You ask the seller for a carpeting allowance of $2000.

Here's how the deal works;

- You buy the property for $100,000. - You pay the bank on a $75,000 mortgage. - You pay the owner on a $30,000 mortgage. - The seller pays your closing costs. - The seller pays you $2000 for carpeting.

If the property is rented out for $1000, you collect the rents and security deposits.

In the above example the buyer would walk away from the closing with a $100,000 property, $5000 from the over finance, $2000 for the carpeting, and $2000 for the rent and security deposit. That's a total of $9000 for buying a piece of investment property. NOT TOO BAD.

Will every seller be willing to do this deal with you? No, maybe only one seller in ten or twenty will be willing to do this deal. But there are sellers who will do this deal. What you have to find is a motivated seller.

What makes a motivated seller?

- An owner who is in foreclosure. - An owner who got the property as part of an estate. - An owner who no longer wants to deal with tenants. - An owner who is in divorce. - An owner who has been transferred out of state.

Now that you've bought a property and put money in your pocket be prepared to deal with the tenants.

Good Luck!

• Lawmakers set new mortgage bankruptcy bill (Washington Post)
  WASHINGTON (Reuters) - Legislation designed to stem foreclosures by allowing bankruptcy judges to erase some mortgage debt will be introduced by Congressional Democrats on Tuesday, and hopes are high that it will pass after a similar plan failed last year.
  


• NY Fed begins purchasing mortgage securities (AP via Yahoo! News)
  The Federal Reserve Bank of New York said Monday it has begun purchasing mortgage-backed securities in an effort to bolster the battered housing market.
  


• Fed starts program of purchases of mortgage securities (AFP via Yahoo! News)
  The Federal Reserve said Monday it began buying troubled mortgage securities through investment managers, kicking off a program expected to spend up to 500 billion dollars to ease a credit crisis.
  


• Non-Agency Mortgage Bonds Rallied as Rates Declined (Update2) (Bloomberg)
  Jan. 5 (Bloomberg) -- U.S. mortgage bonds without government support rose last month, as efforts by the Federal Reserve and Treasury Department to lower home-loan rates boosted investor demand.
  


• New York Fed Begins Purchases of Agency Mortgage Debt (Update3) (Bloomberg)
  Jan. 5 (Bloomberg) -- The Federal Reserve Bank of New York started buying mortgage-backed securities today as part of a $500 billion program to support the U.S. housing market.
  


• You'll need a 40% deposit, mortgage-hunters are warned (Daily Mail: World News)
  A quarter of mortgage deals are available only to borrowers with a 40 per cent deposit, it has been revealed.
  


• 2 NY mortgage firms agree to restitution (AP via Yahoo! Finance)
  Two New York mortgage brokerage firms have agreed to pay $665,000 in restitution after it was found that they charged higher fees to black and Hispanic borrowers.
  


• Non-Agency Mortgage Bonds Rallied as Rates Declined (Update1) (Bloomberg)
  Jan. 5 (Bloomberg) -- U.S. mortgage bonds without government support rose last month, as lower home-loan rates boosted investor demand. Securities initially rated AAA and backed by prime- jumbo mortgages with five years of fixed rates climbed 5 cents on the dollar in December to 75 cents, according to JPMorgan Chase & Co. data.
  


• NY Fed Begins Buying Mortgage Securities (TheStreet.com)
  The Fed will start purchasing mortgage-backed securities from Fannie and Freddie as part of a new plan.
  


• Cuomo: Firms settle mortgage discrimination charges (Newsday)
  Two mortgage brokerages have agreed to pay $665,000 in restitution to settle allegations they charged about 455 black and Latino borrowers higher fees than white borrowers with comparable circumstances, the state attorney general said Monday.
  

Copyright 2005 - Mortgages