How To Buy Investment Property With No Money Down
March 17th, 2011 | 
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Although how to buy investment property with no money down is something that most people find to be intimidating, it doesn’t have to be. This is especially true if your credit is less than excellent or tarnished. Bad credit makes it a bit harder to navigate the possibilities, but does not necessarily deal you out of the game.
It used to be that the least you could put down on a real estate purchase was 5%, and then it was 3%. It has gone down to 0% and this is where folks like you and me can turn some profit. There are many ways to do this. Just as any deal has the potential of falling through, you need to do your research thoroughly before making the offer to buy. Here are a few ideas to start with:
Incorporate the down payment the price
Offer to incorporate the down payment into the selling price. Since your purchase price will be higher, this will cause your payment to be slightly higher, but you get into the property with no out of pocket expense up front.
Negotiate an installment plan
Negotiate an installment plan for the down payment. Ask the seller if you can pay them on a monthly basis until the down payment is paid in full. This way does not affect your purchase price or your payment.
Borrow the real estate agents commission
See if you can “borrow” the real estate agents commission briefly to make the down payment. Arrange a payment horizon to repay the agent’s commission.
Take over the existing mortgage
If possible, try to take over the existing mortgage. This is an attractive option for a lot of people. Simply complete the deal as an assignment of contract. All paperwork and quick to boot.
Offer a trade
Here’s an interesting option. Offer a trade of material or services in exchange for the down payment. Carpenters, bricklayers, auto mechanics and the like all have trade-able service skills that may be valuable in this respect. On the other hand, if the seller were a retiree, perhaps an unused auto or RV would be attractive in lieu of cash down.
Look for foreclosed properties
Look for foreclosed properties in your local area. Listings are available for the asking. These properties are up for grabs and the lenders want to get rid of them quickly, so a deal is probably going to be easy to cut. Add to that the fact that in a foreclosure, the lender has no overhead except the newly acquired property, which they don’t really want. They want the payments to continue. In other words, you have the upper hand.
Go to your bank
Many banks now have “little or no money down” programs in place. It doesn’t hurt to inquire.
These are only a few ideas that will give you a jump-start in how to buy investment property with no money down. Research is the very heart of success here, so look around to see what opportunities you can find. Remember that a seller wants to sell and a dealer wants to deal. This can be your opportunity to really shine.
Posted in Investment Property | 
Tags: Auto Mechanics, Bad Credit, Briefly, Existing Mortgage, Game, Investment Property, Real Estate Agents, Rv