HEY CLUB! I AM A BEGINNING INVESTOR AND I HAVE ANOTHER QUESTION I HAVE JUST GOT TO ASK. I HAVE A FICO IN THE LOW 600s. I make a good amount of money to provide for my family. I see and hear alot about grants, and ways people acquire properties with no money down but it seems that I cant get any to work for me. Maybe i am doing something wrong. I dont have 15 or 10, let alone 5 thousand dollars sitting around to begin my career.
I am desiring my career as an investor so that I can give my nonprofit organization, Big Brothers, more time instead of working 50+ hours weekly as a chef and doing it part time. My question is “ARE THERE ANY REAL PROGRAMS OR STRATEGIES THAT ARE REALLY NO MONEY DOWN!?” HONESTLY I AM THINKING THAT I CAN PURCHASE THE FIRST PROPERTY AND USE THE EQUITY IN IT TO PURCHASE OTHERS USING THE HELOC METHOD BUT DANG- ARE THERE REALLY NO MONEY DOWN METHODS OR WHAT?
Well, I’m new also. But I can tell you how I did my first house, just this past December. Zero down.
I bought a damaged home, and used a bank that only required 5% down of the purchase price, as opposed to 5% of the total amount needed to buy AND repair it.
But since the purchase price was so low ( 23K ), and the repairs needed totaled no more than 55K, and the home was appraised at 132K fixed, they covered my 5% down and my closing costs into the loan, so all I need at closing was a pen and my ID.
Just how I did it, not even sure how well I did, but I took the plunge, and am about 2 weeks away from it being rentable. Crosses fingers
Your Score is a bit low. Research credit, and start cleaning it up. It’s amazing what some letters will do.
“No Money Down” is possible, but I don’t know what you’ve tried. If you truly are new to this start by bird-dogging properties for other investors. It will give you experience with little or no risk.
The TRUTH is that it is relatively easy to buy a property no-money down. There are a lot of techniques to accomplish this: sub-2, lease-option, owner financing, etc. The problem is that it is nearly impossible to run a business without a reserve of either money or credit. To do so, EVERYTHING must go perfectly - which rarely happens in the real world.
I would suggest getting an extra job or two. Fix your credit and build up your cash BEFORE you start investing.
okay to begin - no money down is possible. anything is possible. is it realistic? sure it is. there are people out there doing it.
if you put your mind to it - you can accomplish it. if you say that you want to begin investing in real estate using “no money down” - then you must learn how to do it.
NOW, this is important - let’s say you buy a house with no money down - the seller is in a tough spot selling it to you for 30% below market and the mortgage company is willing to allow you to take over the sellers payments - so now you’ve got a house, you own real estate - what do you want to do with this real estate? fix and sell? or rent?
okay - for either exit strategy (goal of purchase) - YOU NEED MONEY.
or you need credit - if you use credit to fix it, you better be able to make those CC payments - if it’s interest and payments deferred (home depot CC), then fine, when that time frame is up - you’d better have the money to pay that CC.
if you’re renting it - and say it has a monthly cash flow of 350 a month - and that’s the real deal actual monthly CASH return after all expenses…
what money will you use WHEN you lose a tenant, or a tenant doesn’t pay or repairs are needed, etc…
you have to consider MANY things. you MUST just start learning about real estate basics first.
Thanks everyone for your help. I have been looking at real estate for the past few years. I have improved my credit dramatically. I have looked at Carlton sheets, went to real estate investment classes in my city, and talked to many people but I guess it seems like the deals that people acquire using that method dont appear in my searching; and I have searched NC, GA, and TX. I guess according to you I need to do a better job searching. Thanks so much for telling me the truth!!!