Thursday, February 21, 2013
Real Estate Investing - How To Invest With No Money
Most new real estate investors have held back by a lack of finance, on the assumption that they must have a lot of money to start. Nothing can be further from the truth. You can still do great deals and making money spending little or no money of their own.
Currently, most people are unable to invest in real estate because most lenders have tightened their lending too much. If they can qualify for these loans, they are required to put down as much as 20%, and allowed only a few investment properties. This article shows you how you can invest in real estate with little or no money of their own.
My favorite model is that real estate investing wholesale and investors with little or no risk. The wholesale real estate investing, you find difficulties houses below market and flip them for a profit to other real estate investors. This may include giving the contract to a buyer with cash. You buyer close the deal on your behalf with the same contract you signed with your vendor. Allocation fee is what you walk home at closing. Or it may involve simultaneous closing, where you buy and sell property at the same closing table. This means that there are two contracts - one to buy a house, which one to sell it to your buyer. Of course, the sale price is higher than the buying price and profit is the difference, less fees and expenses.
A few years ago, most lenders do not care if you used their money to close the first trading in simultaneous closing. However, in recent years, most lenders, including hard money lenders will require you to have money to close the first transaction. But this should not slow you down. This is where commercial financing is a commercial financing is a short-term loan financing up to 100% in order to obtain the value of properties, you turn them around and sell for a profit. With a short period of time, both transactions can be nearly as close together as practicable, even within minutes of each other.
Transactional funding is usually available within a few days. Personal skills are not necessary. It will not need to have good credit, steady income or a good bank balance. They just need to see that you've lined up a suitable buyer for the property. Qualified buyer means that anyone with a verifiable money as real estate investors, or anyone approved for a loan. There are lots of assets that you purchase the real estate investor with this method. This cuts down the responsibility to almost zero - do not create or maintain costs, tenants and so on. As long as you can find a steady supply of properties and buyers lined up, you can plug into this business model and bring as many properties as you can find.