Ways to Do a Deal with Bad Credit and No Money Down

October 7, 2009 · Posted in No Money Down · Comments Off 

Real estate investing, whether doing house flips or commercial, follows the traditional axiom of “In order to make money, you need to have money.” Or so it seems. This article will showcase how this isn’t necessarily the case, and provide you options to acquire real estate with no money down, or with bad credit. Note that these are not guarantees, they’re techniques. Like all techniques, and most advice in real estate investing, they won’t do you any good unless you follow them carefully, and know when not to follow them to suit the deal you’re brokering.

First and foremost, you need to ask the classic question, “What’s my motivation?” Or, rather, you should know your motivation already – you should be asking yourself what the seller’s motivations are. These provide the key to understanding what the seller really needs (rather than what they want) and will provide insight into how to make the deal happen, even under less than ideal circumstances. Is the seller trying to get out from under the house to facilitate a new job? Have they experienced a financial setback? Are they in danger of a home foreclosure? It’s not quite a case of “search out the desperate sellers”, but knowing why they want to sell now and what they need is a clue on how you structure the deal.

Structuring the deal is a mind set, not a recipe. The mindset should focus on mutually beneficial arrangements. You benefit from doing the deal, the seller benefits from doing the deal, and both of you succeed. Again, knowing your seller’s motivations are important here, because they’ll tell you what the victory conditions are.

Making the deal happens means finding a way to meet the down payment. There are numerous options, and what follows is at best a summary.

First, and perhaps the simplest, is getting a loan. With good credit, getting a loan is easy – with bad credit, in the current subprime loan meltdown, it’s not. Read more

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Can You Really Get Homes For $1.00-10.00 Down?

December 6, 2007 · Posted in No Money Down · Comments Off 

One of the most frequent questions we are asked is “Can you really get homes for $1.00-10.00 down?

The answer is Yes!

It seems that most folks have a hard time believing that this is really possible and we can definitely understand that.

It seems most folks think that we are calling up home owners and saying “Hi, my name is TC, and I am a really nice person and I was wondering, would you be interested in selling your home to me for $1-10.00 down?”

If we did that we would be laughed at and probably hung up on!

Now understand that doing 1-10 dollar deals is like a recipe, similar to a food recipe.

For example, if you were going to bake a cake, there is a recipe that not only gives you the ingredients but also the steps you must take to successfully bake that cake.

If you decided to add the eggs anytime you wanted to, say after the cake was baked in the oven for 45 minutes, would you have a successful cake?

No you would not!

The same thing applies to $1-10.00 down!

There is a sequence to be followed and a reason that it is incredibly effective when you use it.

Now let’s get this straight… This does not work on every home that is for sale! But as we have discussed before, it does not have to work with every home for sale!

We will not discuss the exact recipe in this article but let us say this…You must put something down on a contract for it to be legal and binding.

It is often referred to as “Financial Consideration”. Read more

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