ryanmercer
Contributing Member
Cash: $ 8.35
Posts: 46
Joined: 04 Oct 2005
Location: Indianapolis, Indiana
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| No money down question |
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Ok, so there is this property I want... 50,000 even... I want to get it no money down. As I simply don't have a down payment, but I want to get it before someone elese does. I've got fairly decent credit, bring in 23,9 a year...
How should I go about doing it?
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Fri Feb 10, 2006 4:00 pm |
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Jaszbo
Preferred Member
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First get qualifed for the loan. If you really think it's a good deal and really think it's undervalued then you shouldn't have a problem qualifing. If you make 24k and don't have bad credit and not a lot of loans and it's worth 50k, then you'll most likely qualify.
Putting zero down you won't qualify for a lot of lenders and most likely your going to get a higher intrest. Try to see if you can scrap up 3% or 5%, as 3% would only be 1.5k and 5% is 2.5k, which maybe you can save it up or borrow from family and pay them back slowly. I guess it also depends on what your plans are, how long you want to live there, if you are going to live there, rent it out, flip it...etc.
But the first thing is get qualified and then make an offer.
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Fri Feb 10, 2006 6:24 pm |
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ryanmercer
Contributing Member
Cash: $ 8.35
Posts: 46
Joined: 04 Oct 2005
Location: Indianapolis, Indiana
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UPDATE
Got my acceptance letter for up to 75k 
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Wed Feb 22, 2006 7:51 pm |
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No-Brainer
Senior Member
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Joined: 29 Dec 2005
Location: Oregon USA
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| One more thing |
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Hi Ryan,
Good to see you here.
You could also see if there's a potential for owner financing. If they want to sell bad enough, it could be a no down easy or even a separate contract for the down.
Zig Ziglar says you can have anything you want in this life as long as you help enough other people get what they want. There is no place this is more true than Real Estate negotiations.
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Thu Feb 23, 2006 6:06 am |
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financialpeace
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In my opinion, which is worth about exactly what you pay for it...
The advice given so far is right on. The owner finance is a good deal if this property is worth say $55k and the buy price is $50k, there is instant equity there, which could be viewed as a down payment of sorts, though not usually from a banks point of view, they likely go off of the purchase price to determine down payment requirements. So owner finance of this one isn't a bad option if you are getting this property at a bargain. I also like Jazsbo's advice to scrape up some cash for closings costs, down payment, and all that. I'm not too keen on loans from family, that strategy changes the whole relationship and can cause problems. If you do that, you're placing yourself into the slave's position. Thanksgiving dinner tastes different when eating with your master instead of your dad, it can change the relationship forever. The old joke is: If you loan your brother in law a $100, and he never talks to you again, was the investment worth it? You have no control over how the other party will react to this type situation, therefore, I'm not in favor of it, but it is still an option, just count the costs before building the tower.
Try not to get too married to this deal, I assure you its not the ONLY $50k property in the world, yes, sometimes you need to act swiftly, and this may very well be one of those time, but NEVER allow the urgency to cloud your reasoning for making this a "good" deal.
Other than that, another way to get into this property is a lease with option to buy, with a predetermined price and partial lease payments being credited toward a down payment at a future date. These work too, but usually by the time the lawyers get through with all of the back and forth negotiations to protect their clients, the costs are more than if you just forked out the down payment and bought the thing...
Just some options, and to re-enforce the good advice the others have given to this point...
I hope the best for you.
***Whoops! Just noticed the dates, sorry about that Ryan, you're probably sitting at the closing table already... sorry so late, maybe next time, eh? I hope it works out for you.
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Thu Feb 23, 2006 4:49 pm |
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Jaszbo
Preferred Member
Cash: $ 35.90
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Joined: 03 Jan 2006
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Don't worry about the date financialpeace, even if it's too late it's worth learning from even if it's a mistake. Everybody makes mistakes and I'd rather learn my mistake than keep doing it over and over or not knowing any better.
I think you gave good advice
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Thu Feb 23, 2006 6:07 pm |
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aaa1
Contributing Member
Cash: $ 1.00
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Joined: 11 Jun 2006
Location: Florida
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Ryan, there is a company in Canada that pays your down payment for you. If you're not in Canada, you can still profit from the new real estate concept. PM me for more info.
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Sun Jun 11, 2006 2:31 am |
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