Posted by Ed Garcia on January 15, 2001 at 11:21:49:
Thomas Johnson,
Not so, many people don’t know that if you have good credit, you can buy a house with 100% financing. Also if they can afford to make your monthly payment, then they can afford the payments on the house because you’re going to charge them more than if they bought it themselves. After all you’ll need a positive cash flow. It’s just a matter of, do your renters have good credit or not.
I agree with TCK, if your renters do have good credit then flip them into one house and then purchase the other with the money you’ve made from it. Weather you do or you don’t, TCK, is also right that you’ll need the seller to carry back in second position, or come up with 10% down if you have good credit.
Posted by t johnston on January 13, 2001 at 13:17:52:
I have a few homes picked out to buy, i have a trusted renter waiting for me to give an address to move in to. my problem is i just started a few months ago my own computer/technology retail store and of course we are still a few thousand in the red. needless to say i haven’t paid myself any money in those few months and because of this i am behind on my two charge cards. how do i connect with a house to get this renter in to start generating my monthly cash flow.(not sure if it matters, but my store is set up as a c - corp.)
If you expect to make money in real-estate, then you have to spend time and energy in it. With you starting your new business, you don’t seem to be committed to this business.
In order to purchase houses with no money down you need to buy with seller carry back, or do a lease/option. You say that you have two houses to put your renter in, but apparently you can’t close your deals. You might want to see if your trusted renter can qualify for a 100% financing and flip them one of the houses. If not then do a sandwich lease/option on one of the houses.
I have read books on realestate and I am aware of the seller carry back, lease/option and the combination of both. What I was looking for I guess is some names and numbers to some brokers that can work the financial angle. The one house is 20% bellow market value and it needs only cosmetic repairs. I just need the loan and the renters rent will pay for it. I figured if they could aford 100% financing they would be buying, not renting.