Posted by Sean on May 15, 1999 at 20:14:02:
Ok, if you have $50k cash that is available to be used suggest that you start by finding a bank or mortgage broker that specializes in unseasoned refinances.
Your plan is simple – to find motivated sellers (due to foreclosure, divorce, job transfer, etc.) who need to sell immediately, if not sooner. Look for houses worth around $62,500.
You then offer to buy their house & cure their problem by paying them all cash for their property and a fast close – just three days. The catch is that you are offering them 80 percent of the value of the property.
Some people will reject your offer and be offended by it; forget them. Some will counter offer and about 1 in 12 will accept. So you buy their property for 80 percent of what it’s worth.
You then turn around and refinance the property getting an 80 percent loan, effectively pulling all your cash out of the property and giving you 20 percent equity. Move a tenant in, and you should have little problem having the tenant’s loan cover expenses.
The trick is finding someone that will do unseasoned refinances, but I think there is a mortgage broker on here that does it. They will likely be drawn to the title of this post and (hopefully) email you their info.
Please help me… - Posted by Butch555
Posted by Butch555 on May 15, 1999 at 18:03:51:
How do I buy real estate with no money down, and lease it to pay the loan…and make a nice profit?
Thank You.
Good Question - Posted by Sean
Posted by Sean on May 15, 1999 at 19:04:42:
And also not the easiest one to answer in this limited amount of space!!
There are numerous techniques some of which are easy to use, some of which are hard to use. Some techniques require that you have nothing, other techniques require that you have a great deal of assets.
A simple technique would be to own your own house, with a sizeable equity and a home equity line of credit. Then you merely find a property you wish to own, negotiate for the seller to finance you and make your down payment off of your home equity line of credit. Voila nothing down. Then you move a tenant in and (if you’ve planned right) the tenant’s rent will cover all your expenses.
Perhaps this technique will not work for you because you don’t have a home equity line of credit. If so perhaps it would make it easier for all of us to help you by explaining what exactly your situation is.
What is your credit like? Good, bad or in between?
How much available credit do you have to work with?
How much available cash do you have to work with?
How much equity do you have in what properties you own?
How much time do you have to work with?
Re: Good Question - Posted by Butch555
Posted by Butch555 on May 15, 1999 at 19:58:13:
I appreciate your help, if you can…please explain my situation…
Good Credit
25K line of credit
50K cash
250K in props
As much time as needed
Thanks Very Much for your help!