I understand the process and I have access to pre-foreclose home owners, and I feel confident I can talk to the bank to negotiate a deal. I am not sure how to put a deal together with no money. How much upfront cash do I need. I understand about the subject to and etc. Cash is my issue. Plz help… I am eager to lget started, but everyone on the net wants a lot of money to teach. I went to my local llibrary, read books but didn’t feel comfortable with the info.
I am also new to foreclosures, but there are plenty of ways to come up with cash…Here are a few…
- Use a hard money lender-they will use the home as collateral. I have found that they are looking for a LTV(Loan to Value) in the neighborhood of 60-70%. They will charge higher interest rates(12-20%) and may charge you some points, but it can be a good option.
2)Pool money from other inverstors. Find your local REI club. Great deals will attract investors.
- Getting a little bit of money for earnest money and miscellaneous stuff can be obtained from a business LOC. Open up an LLC(costs me $300), as banks look favorably with those that have one.
I think the best way to learn the stuff is just start working. Make calls, knock on doors, and learn the process. Get advice from the experts when needed. This is what I have done, and I have found I have learned far more when I am doing than simply reading.
hope this helps,
gregg eller
Join your local reia. Make new friends. Each club usually has vendors that include hard money lenders etc. Talk to friends and family, they may have IRAs that may cover your costs. etc. run small ads to that effect. search the internet. Check bookstores for books on the subject
steve