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Is
it possible to find real estate deals with zero down? The answer
is yes!
But the real question should be : Can I get a good real estate
deal with out my own money and the answer to that is may be.
It depends. All, zero down deals are not good deals. You can
buy my house for zero down with $ 2000 per month payment for
30 years. But this is not the deal you want when you know the
rent for my house may only be $ 1500 per month. You are looking
for investment opportunities where you can get good returns
and zero down may not be the one with the best returns. If you
keep all your options open, once in a while you will run in
to zero down profitable deals. But do not bet your whole career
on those deals as claimed by real estate courses. Remember,
the real estate courses make money from your tution and zero
down is used to fish you to attend the course. I have taken
few of them.
Here are the places
you need to look for good investments. Remember, this is people
business and try to create value for all parties involved.
1) Management Companies: These companies manage rental properties
and know the land lords who want to sell their properties.
2) Your Add in the local Paper: Let people know that you buy
properties. The add may take time up to six months for you to
make a deal from it.
3) Realtors: Realtors know the properties with good investment
potentials and they can call you if they find such properties.
4) Hud Houses: Hud auctions houses at a reasonable price and
you can buy them for a profit at a later date. You need to do
your home work with the houses being sold "AS SUCH"
5) REO Properties: The banks may sell their repossed homes at
a discount. There are realtors who deal with REO properties.
6) Auctions: There are auctions that are not well advertised
and you may be able to get a good value house in such auctions.
Always ask your
self a question: Why is this property more valuable to me than
the seller? Seller has inside information and unless you have
exit policy, do not buy a property and be left with the empty
bag.
Once you find properties
that can create value for you, you need to find a way to buy
it. The most common method is to get 90% from bank and 10% of
your own money. IF you do not have 10%, you may try zero down
technique.
1) Seller Financing:
Ask the seller if he or she will carry 10% of the purchase price
as a second mortgage. Some lenders will allow this kind of financing
and give you 90% of the loan.
2) Lease Options: If the seller does not need money, he may
give you the house with a lease and you make monthly payments
to the seller instead of bank.
3) Private Lenders: Some investors will invest in real estate
for higher returns.
4) Notes: You can write a note for the property and then sell
it in the private mortgage market.
You can call me
if you need to discuss financing options for the real estate
deals. I work with many conventional and non conventional lenders
for such deals.
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