Possible to sell Property No money down? - Posted by Mark-IL

Posted by DavidV on July 08, 2003 at 09:59:53:

There are programs that you can get zero down if the buyer has good credit. You can also do that through the ameridream program. I think its ameridream.com. FHA will allow you to contribute the 3% down, and i believe up to an additional 2% of closing costs…max 5%.

Possible to sell Property No money down? - Posted by Mark-IL

Posted by Mark-IL on July 08, 2003 at 08:37:09:

Need some input. I am wondering if you can do this legally.
To buy property fix it up and turn around and sell it to a new owner without them putting any of their own money. How I would do this is to sell the property close to appraisal value. I have a Loan broker in town that can offer different types of packages depends on the type of person. I would help with the down payment figuring when I sell the property it will most likely be discounted anyway. I figure since I will not be using a real estate agent I will not have to pay a comm.

I have some single family homes that have renters in them and some are vacant. I could sell these as investment or to people that would like to live in them. I also have one 4-plex that I can sell no money down as well.

Is this a hairbrain idea or is this a really great idea? I would be curious if anyone else is doing this as well as knowing what the pitfalls may be. Possible deals they have done in the past. I relize I would sell this As-is and have my attonery draw up a contract. Any input or advice would be great. Thanks in advance.


this is how you do it… - Posted by tray giddens,houston

Posted by tray giddens,houston on July 09, 2003 at 11:56:11:

everything depends on your equity after appraisal…
you funnell the d/payment to the buyer via an approved charitable organization. they charge a fee for this service… then you just contribute to closing directly as stipulated in the contract.

i’ve used these programs and negotiating tools to get buyers into homes… they work seemlesly and i could not recomend them more highly.

Hope this helps,

Tray Giddens, Realtor

Seller Financing?$mall Down Payment - Posted by Randy

Posted by Randy on July 08, 2003 at 10:32:16:

Selling with NO money down you will draw a bigger clientele, but is it the clientele you want? Depends on your Loan Broker. Typically people with no down payment have good intentions, but if the going gets tough, what do they have to loose? their down payment (can you spell Zero)? If they have good credit but are just cash poor right now that?s a different situation. Also many ?No Down? clients have less than good credit, meaning the lender will not approve them for financing with out a down payment. There may be a seasoning issue as well, requiring you to have held title for 12 mos. prior to the sale.

A good option is to sell on a seller financed note with small down payment (5%), maybe a 2nd to cover the lender?s minimum LTV, and then sell the note. This way you can use grant programs and other incentives for your buyer. I know of sources that will do this kind of flip and fund them in 7-10 day?s. Email me directly if you need more info.