Tyler Hicks
06-30-2005, 11:19 PM
Hello forum members and thank you, Dan, for inviting me to participate.
To start things off, I'd like to contribute articles on questions I'm asked most often by people wanting to get started in real estate investing. If you have questions, I'll gladly do my best to answer them.
Please bear with me while I learn how to format and display posts most effectively. :smiley21:
The first article is:
15 WAYS TO GET 100% FINANCING FOR REAL ESTATE
ONE OF THE MOST ASKED QUESTIONS about real estate is: "How, and where, can I get 100% financing for the income real estate I want to buy or flip?"
Below are 15 ways you can get 100% finance for income real estate. But before giving you these methods we want you to understand what is meant by 100% financing. It is:
You borrow the down payment from one lender--typically 10% to 25% of the purchase price--$10,000 to $25,000 on a $100,000 purchase price for an income property.
You get a long-term mortgage for 15 to 30 years for the balance of the purchase price--$90,000 or $75,000 for this project from another lender—usually a traditional real estate mortgage lender.
You have little trouble getting the long-term mortgage because the property is the collateral for it.
Your challenge, then, is to get the down payment you need.
Now here are 15 ways for you to get 100% financing for the income real estate you want to buy.
Note: Not all of these methods will apply to all situations or all investors. These ideas are meant as starting points only; you might find a variation of one of the methods works for you.
1. Use credit-card lines of credit--3 lines @ $10,000 each = $30,000.
2. Get a personal signature loan--such loans go up to $50,000.
3. Take an equity loan on other property you currently own.
4. Have the seller issue you a Purchase Money (PM) Mortgage for the down payment on the income property you want to buy.
5. Let the seller take out a loan for the down payment; you assume responsibility for paying off the loan and make the payments.
6. Borrow actively traded stocks or bonds and use them as collateral for your down payment loan.
7. Get a second mortgage on the property and use this as your down payment.
8. Buy the property using a Lease-Option with zero down and part of your monthly lease payment being used for your down payment.
9. Use a government program (Federal, State or City) offering property with zero down payment.
10. Look for repossessed and non-performing-loan properties offered to you at zero down payment by banks and other mortgage lenders.
11. Finance the income property at its market value with the purchase price at a lower value; use the difference for your down payment.
12. Assume the existing long-term mortgage on the property and have the seller take a second mortgage from you for your down payment.
13. Get a mortgage from a Private Lender for 100% of the property value.
14. Use a Hard Money Lender for a 100% loan--such lenders may be very aggressive on solid property deals.
15. Refinance other property you own to get the down payment money you seek. Use part, or all of the proceeds, for your down payment.
Ty Hicks
Author: 209 Fast Spare-Time Ways to Build Zero Cash Into 7 Figures A Year In Real Estate, How to Make Millions in Real Estate in 3 Years Starting with No Cash, How to Make Big Money in Real Estate, and others.
Copyright (c) 2005 Tyler G. Hicks and
International Wealth Success, Inc. (IWS) (http://www.iwsmoney.com/realestate.htm)
To start things off, I'd like to contribute articles on questions I'm asked most often by people wanting to get started in real estate investing. If you have questions, I'll gladly do my best to answer them.
Please bear with me while I learn how to format and display posts most effectively. :smiley21:
The first article is:
15 WAYS TO GET 100% FINANCING FOR REAL ESTATE
ONE OF THE MOST ASKED QUESTIONS about real estate is: "How, and where, can I get 100% financing for the income real estate I want to buy or flip?"
Below are 15 ways you can get 100% finance for income real estate. But before giving you these methods we want you to understand what is meant by 100% financing. It is:
You borrow the down payment from one lender--typically 10% to 25% of the purchase price--$10,000 to $25,000 on a $100,000 purchase price for an income property.
You get a long-term mortgage for 15 to 30 years for the balance of the purchase price--$90,000 or $75,000 for this project from another lender—usually a traditional real estate mortgage lender.
You have little trouble getting the long-term mortgage because the property is the collateral for it.
Your challenge, then, is to get the down payment you need.
Now here are 15 ways for you to get 100% financing for the income real estate you want to buy.
Note: Not all of these methods will apply to all situations or all investors. These ideas are meant as starting points only; you might find a variation of one of the methods works for you.
1. Use credit-card lines of credit--3 lines @ $10,000 each = $30,000.
2. Get a personal signature loan--such loans go up to $50,000.
3. Take an equity loan on other property you currently own.
4. Have the seller issue you a Purchase Money (PM) Mortgage for the down payment on the income property you want to buy.
5. Let the seller take out a loan for the down payment; you assume responsibility for paying off the loan and make the payments.
6. Borrow actively traded stocks or bonds and use them as collateral for your down payment loan.
7. Get a second mortgage on the property and use this as your down payment.
8. Buy the property using a Lease-Option with zero down and part of your monthly lease payment being used for your down payment.
9. Use a government program (Federal, State or City) offering property with zero down payment.
10. Look for repossessed and non-performing-loan properties offered to you at zero down payment by banks and other mortgage lenders.
11. Finance the income property at its market value with the purchase price at a lower value; use the difference for your down payment.
12. Assume the existing long-term mortgage on the property and have the seller take a second mortgage from you for your down payment.
13. Get a mortgage from a Private Lender for 100% of the property value.
14. Use a Hard Money Lender for a 100% loan--such lenders may be very aggressive on solid property deals.
15. Refinance other property you own to get the down payment money you seek. Use part, or all of the proceeds, for your down payment.
Ty Hicks
Author: 209 Fast Spare-Time Ways to Build Zero Cash Into 7 Figures A Year In Real Estate, How to Make Millions in Real Estate in 3 Years Starting with No Cash, How to Make Big Money in Real Estate, and others.
Copyright (c) 2005 Tyler G. Hicks and
International Wealth Success, Inc. (IWS) (http://www.iwsmoney.com/realestate.htm)