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Do You Know How To Go About Real Estate Investing With No Money Down?

By
Services for Real Estate Pros with Real Estate Arena

One of the biggest obstacles for homeowners is coming up with the down-payment for a home.  Now is the time to get into real estate investing with sellers having to sell their homes for extremely cheap.  To avoid the obstacle of paying a down-payment, do you know how to purchase with no money down?

There is one method that virtually anyone can use when trying to go about real estate investing with no money down.  There are some variations of this method as well, but it is something that many homeowners will agree to if they have a great interest in selling their home.

The simplest method is to take over their mortgage payments.  This method is known as ‘assuming' the mortgage.  In order to do this, you will need to be approved by the original lender to assume the mortgage.  If you cannot get approved, you may also want to try a ‘subject to' assumption.  This is where you make payments while the property remains in the seller's name.

 

If the seller is wanting a higher price than this, you can take over the original mortgage payment as well as create a second mortgage on the remaining cost of the house with the seller.  What you can do is offer a high, interest-only payment for a short period of time.  This allows the seller to collect a high interest over a few years as oppose to letting the money just set in a bank.

The last thing you are going to need to know with real estate investing with no money down is if there is no mortgage to assume.  In this case, you are going to find that most mortgage lenders just want to make money.  You will find that there are several financial lenders that are more than willing to make a deal with you.

 The mortgage is typically based on 60 to 70 percent of the value of the property.  As long as the financer knows they will be getting their money back in the value of the property, they don't care what kind of money you make.  This allows you to complete the deal with the seller through a second mortgage.

Although every seller is going to be different, there are ways you can make a real estate investment without putting any money down upfront.  Down-payments can be the biggest obstacle you face when purchasing a home, but this article shows you how to avoid this bump in the road.

  

The Real Estate Arena

 

 

 

 

 

 

Comments (1)

Chris and Berna Sloan
Group 1 Real Estate - Tooele, UT
Tooele UT

James.. What do you advise your clients to do about the due on sale clause?

Dec 17, 2008 08:22 AM