No Money Down...OKAY What about Closing Costs???? - Posted by Steve H.

Posted by investor on April 29, 1999 at 17:50:14:

i’m an investor and most of the time you can mortgage in the closing costs

No Money Down…OKAY What about Closing Costs??? - Posted by Steve H.

Posted by Steve H. on March 09, 1999 at 06:50:21:

How do you pay for closing costs in a No Money Down deal? It sounds great but aren’t you going to have to put some money in somewhere? What does C. Sheets say about this?

Thanks for your reply(s),

Steve H.

Re: No Money Down…OKAY What about Closing Costs??? - Posted by lyal

Posted by lyal on March 16, 1999 at 14:17:09:

You’ll find that many of these people never even buy the property (well ok maybe they own it for a few minutes at the closing table). They either do a “flip” and assign the contract for a fee (the flippee pays the closing costs) or a simultaneous close where all they do is sign papers and the end buyer’s funds are used to finance the transaction (no…you don’t need any money of your own to do this) or they might work using a Land Contract or Lease / Option which in many cases doesn’t have a “normal” closing. Depending on how detailed you want to get, you could just meet the buyer at the property or the nearest fast food restaurant and sign the papers. The buyer will eventually pay closing costs when (if) they secure a conventional mortgage to refinance the property but not you as the investor.

Re: No Money Down…OKAY What about Closing Costs??? - Posted by RS

Posted by RS on March 09, 1999 at 10:27:28:

A motivated seller will pay 'em. Just ask.They usually plan on paying half of them anyway, so another $1500 or so isn’t that much to ask.If this fails you can try this; if you’re really getting a deal on the property, you can offer to pay 1 or 2K above the agreed price. The seller will use this to pay for the extra closing costs.In my situation recently, the listing broker agreed to lower his commission to help with the closing costs. You gotta love it when that happens! But if he hadn’t done that, I could have asked to borrow the commission for a term of a couple of years or so. This is what CS suggests. It works sometimes. It’s a great argument for dealing with the listing broker only.If you get your own buyers broker into it, the commission is split, and you’ll find the listing agent less flexible on loaning the commission.

Re: No Money Down…OKAY What about Closing Costs??? - Posted by Steve H.

Posted by Steve H. on March 10, 1999 at 06:57:10:

Good advise, Thank You RS!!