Posted by Carrie on September 22, 2003 at 18:29:37:
Scammy? You gotta be kidding me. Buy low, sell higher - people do it everyday. Or buy right, rent for a good cashflow - people also do that everyday.
As for doing this no money down, easy if you have good credit, if credit is bad, then you will have to be very determined to find those sellers who will sell you their homes via owner financing when you have bad credit. The thing I think most beginners with bad credit and no money do is to assign contracts to other investors or retail buyers, but this is also hard work because you must create buyers list and market the property. This is a serious business and if you really want to be an investor - you have got a lot to learn! Luckily this website is here and is VERY educational - spend a lot of time reading this site and you can’t help but learn! I am 19 and bought two houses in May. We get nearly $150/month positive cashflow from our rental and are learning alot. We bought our home for 48k and with about 10k in repairs and improvements we will be able to sell it for at least 75k in two years (our plan).
Well I must go now - Best Wishes,
Carrie
Posted by James L. on September 19, 2003 at 15:34:20:
Hi, I’ve been doing research because im curious as to how the world of REI actually works. And as you may very well know being new to something you know nothing about spawns an overwhelming amount of questions and “what if’s”. so i’ll try to keep it to a minimum.
Lets say i was able to find a motivated seller… with a home valued at $100,000 and he/she still owes $75,000, and are willing to sell the house for $85,000… what are my options? what should my next step be? Is this a good Deal?
ME as the buyer, having no money, no credit worth being finaced by a bank or Mortgage company. How would i come up with the 75K to buy the house and the extra 10K the seller wants to walk away with at closing.
maybe im not seeing the big picture. but how can this deal be finalized with no money out of my pocket?
any help explaining this process would greatly be appreciated. Thanks in advance.
Posted by Carrie on September 22, 2003 at 18:08:32:
Hi there,
To do a no money down deal it takes determination and time to find the right seller. It will not be easy.
For the sample deal you mentioned - 1. You could take over the property subject to, and have the sellers hold a second for the 10k. 2. you could get it written up for 85k then assign it to another buyer for say 90k (they get a deal and you get 5k). 3. you could partner with someone who can provide financing, splitting profit.
Your sample deal really doesn’t have enough info to intelligently give a sample strategy. There is a lot to this game, it is a serious business- for serious people. You need to have a plan, plus multiple exit strategies - keep reading this site and it will all start to make sense to you. While you are doing that you can clean up your credit and save up some money, that will make starting in this biz a lot easier for you.
Hope this helps,
Carrie
Posted by John Smith, IV on September 20, 2003 at 23:37:02:
There are probably different choices. But are you talking on a house to which you would move, or just as a rental.
#1 Tell the owner you would like to lease with option. You control the property.
#2 Try to negotiate further down to 80,000 and then find an equity lender that will only need to know that your loan is 80% or less than the market value of the property. Nothing down for you, 80K to the seller. Monthly rent in the area will determine whether this will be a positive or negative cash flow.
#3 If seller still wants 85K, is he willing to carry back financing on the 10K?
Re: Still trying to understand - Posted by CaseyinBoise
Posted by CaseyinBoise on September 20, 2003 at 11:50:49:
There is no “kicker” here. There is no ONE product being pushed.
This is a forum whereby people can come together and research and discuss WAYS to accomplish these deals.
There are ways my friends. But it takes hard work and dedication. REI is serious business with serious financial rewards…for SERIOUS people.
To the previous post…there are many ways, such as lease options and sub2’s, that you could go with this hypothetical deal you posted.
Email me sometime and let’s chat.
CaseyinBoise