Posted by Vinny on February 24, 2000 at 21:26:08:
Gary- I really appreciate you responding. I like what I saw on your web-site. I was wondering if you could explain a little more about how I should structure this. Also, How do I contact a HML. When you say “Have the owner cover the other 30%” do you mean he would loan me 30% and I would pay him back?
Should I/How to buy house with no money down?(newbie help) - Posted by Vinny
Posted by Vinny on February 22, 2000 at 24:33:18:
I am currentley renting a house for over five years. The owner needs to sell the house because he can not get a second mortgage and needs cash for medical reasons. He has asked me several times if I want to buy and up until now I have declined. The main reasons I have declined are: haven’t had enough for a down payment, a “D” credit rating,not our dream house, misunderstood RDPD and thought I should only mortgage properties that give me a cashflow. He had listed the house in the fall and no one bought it. He had verbally stated that he’d rather sell it to me and would work on the price(cutting out realtor’s commission, etc) and even float my down payment. I am in a position to put a down payment on the house now, but I can also use the money for other investments and reduce some high interest debt. The reason I am asking for advice is: 1. We really don’t want to move in the winter. 2. we don’t want to miss a good oppurtunity. 3. we want to avoid making a major financial mistake. I am excited about learning all I can about creative real estate but before I get to that I must handle this situation. Any advice would be greatly appreciated and used. Thank you in advance for your time.
Re: Should I/How to buy house with no money down?(newbie help) - Posted by Shawn
Posted by Shawn on February 24, 2000 at 08:41:35:
You should look into lease-purchase for the home. It should not be to hard to get a 80% of current value loan. The agreement can be back dated and it will be no or little out of pocket money. The lender will look at the transaction as a refi and not a purchase.
Re: Should I/How to buy house with no money down?(newbie help) - Posted by Jeff
Posted by Jeff on February 22, 2000 at 20:57:01:
I would suggest that you make him some type of offer. He will probably accept anything that you offer. Realize that your interest payments on the mortgage will most likely be tax deductable. Check with your accountant for more info. Save your down payment and do an investment with that money. Then you will have two investments instead of one. Good Luck
Re: Should I/How to buy house with no money down?(newbie help) - Posted by steve
Posted by steve on February 22, 2000 at 16:00:35:
question is how much does he want for down payment? Do you have that amount? If the seller is MOTIVATED you are on the driver seat, my friend.
Re: Should I/How to buy house with no money down?(newbie help) - Posted by Vinny
Posted by Vinny on February 24, 2000 at 20:59:53:
Thanks for the advice. Would I contact a mortgage broker about the lease-purchase? When you say the lender will look at the transaction as a refi can you elaborate a little. Also, how and what benefit would be to back dating. TIA Vinny
Re: Should I/How to buy house with no money down?(newbie help) - Posted by Vinny
Posted by Vinny on February 24, 2000 at 21:04:10:
Thanks Gary for the advice. I agree about doing another investment with the money. Vinny
Re: Should I/How to buy house with no money down?(newbie help) - Posted by Gary D
Posted by Gary D on February 23, 2000 at 24:53:19:
Vinny, I have been in the real estate game for 26 yrs. My advice is this. Find a hard money lender, hard money lenders lend on equity or loan to value only. You should be able to find a HML to lend 70% of sales price. Have the own carry the other 30% and inflate the price to cover your closing costs. Use your own funds to pay off high % debt and along with your tax write off you will be in a good position. Season the loan for a year or two then refi to take advantage of the lowest rate available. You need no credit for this type of loan. I do this all the time for my for my clients who I place in homes for $1500-$3000 total cash out of pocket. You should check my website for more info, in fact RE Agents wanting to increase Commissions and Investors looking for a little known R/E Niche which I have been working for 13 years. Check out www.probate-realestate.com Good Luck, Gary D
Re: Should I/How to buy house with no money down?(newbie help) - Posted by Vinny
Posted by Vinny on February 24, 2000 at 22:48:51:
Gary- thanks for the advice. What do you mean by a HML? Also, are you saying you can help me with this deal? If so please e-mail me. Is the owner going to lend me 30%? Is that what your suggesting? Please elaborate. Thanks again BTW- I look forward to buying your book-it looks great!