I need help getting start with my first deal. Its seem to me that the way the market is going preforclosures is the way to go. I need a no credit check, no bank involved, no money down deal to start with. To get my money making investing ball rolling so to speak. Can anyone provide some advice on where I start or how to approach such a deal. :help
I do not recommend getting involved with foreclosures fresh out the gates. You have to first understand the process, and know your laws in your state. 2nd if you insist on getting started I can recommend you a few courses out there. You see there is alot of detail involved, you could also end up exposing yourself to trouble legally. If your are still interested let me know.
- No Credit Check
- No Bank Involvement
- No Money Down
If I got a dime for every person who has contacted me with these three conditions I wouldn’t need to do anything else…I’d be rich. Unfortunately, the likely hood of me getting rich in this manner is about as likely as obtaining funding under these conditions. But that’s not to say it’s not entirely possible.
So many people want to get into real estate without having to put anything of their own at risk. This could be because they have poor credit and know that there are no banks who will lend to them. It could be because they are not confident enough in themselves to take the risk. Or it could be that they are just plain chicken. Well, if it were just that easy to do, then don’t you think everyone would be doing it? The facts of the matter is that anyone who is going to be loaning a sum of money is going to want their money secured in one way or another. If anyone knows of someone who just hands out large sums of cash without any due diligences or required securities PLEASE let me know who they are!!
Those of you who read my posts on a regular basis know that when I criticize I make it a point to offer what I would consider to be a solution as well. My solution to this is a short sale scenario. If you are motivated and disciplined enough to focus, learn, and follow through then it is possible to begin building your wealth in real estate without MONEY and without CREDIT CHECKS and without BANK INVOLVEMENT. In fact, if you do it right then the only thing you risk loosing is your time. Even then you still come out ahead because you can’t unlearn everything you learned.
First you need to set yourself up to be able to perform short sales. Make sure you are aware of any legal restrictions within your state that would prevent you to conduct short sales. For example: In California they have a law that requires you to be licensed in some way to conduct any foreclosure negotiating. If you need to get licensed then you need to a license.
Begin studding everything you can about foreclosure and short sales. It’s your responsibility to be the short sale negotiating expert, most Realtors or even attorneys don’t know the entire process. Get e-books to study, and read these forums completely. Find other forums that have short sale discussions. I’m a member of several. There is TONS of information in these forums on short sales that will not only get you off to a great start, but will also always be there for you for support.
Once you feel as though you are ready to get started you would begin marketing for foreclosures. In todays market this is pretty easy. As you get the deals in you begin the negotiation process, which you will learn in your studies. Once you have a successful payoff you can obtain funding through private money people other than banks. There are several ways to obtain the funding but very few at no money down and with no credit check. See HERE.
There you have it. Good Luck! :beer
Thank you forclosure negotiator,
I really just need a little guidance to get me started I’m already equipped with everything else the desire, motivation, and the desperation for success. I just don’t have money.
So short sales is you recommendation huh? Well do you have any advice liek do’s and don’ts of short sales. Don’t get me wrong I’m definately going to follow all of you advice and do some studying up of my own. I’m just curious as to what you learned in doing deals that way.
Again Thanks,
Stephanie
Without money a SS is going to be tough…
I agree with Michael. The lenders aren’t going to let you assign a contract. If they approve a short sale it’s in the approval letter/contract that you will close as the buyer. Cant do that without money.
BUT…
I’ve heard there is a way to get funding for it so you can close :cool
I have discussed this in other threads but you can use a simultaneous close utilizing a hard money lender that is willing to fund the front end of the deal but never let the money leave the title company. You can also try to get a title company to do a “dry close” but this is getting harder to do.
If the hard money lender will front the 1st half of the simultaneous close they will usually just charge you 1 -3 points and take payment out of the proceeds.
However, short sales are tough even for seasoned veterans. You have to be familiar with the procedures, jargon, and forms. You can check out my blog which deals specifically with Short Sales and Foreclosure Investing.
Okay
So what about lease option or contract assignments. Could i get in by doing deals this way to start off. I figure with the right network of otehr investors, I could put a some money in my bank account. This way I’d atleast have some kind of down payment money or consideration deposit. But even this way i raed much about but I’m still not confident in performing it myself.
Anyone have any suggestion on how to negotiate a deal like this
Look sweetheart, I don’t mean to sound discouraging but you need to educate yourself first. You can’t jump in a pool unless you know how deep it is. Hope that makes sense.
Spend time reading, studying this buisness, setting up a system, this buisness is not easy, trust me. Attend local REIA meetings see whats really going on. Be careful with local investors some won’t really help you because of the potential competition they might create. This is a jungle and its survival of the fittest.
Stick to one thing, one niche and get real good at it, whatever it may be. Anyway this has been my experience so I am just sharing my opinion. GOOD LUCK