| Foreclosures and No Money Down |
|
|
|
|
|
almu
New Member
Cash: $ 1.25
Posts: 3
Joined: 27 May 2005
|
| Foreclosures and No Money Down |
 |
|
How do foreclosures tie in with no money down. What's the scope for combining these two approaches to real estate investing?
Have any of you tried to combine them and what were your experiences? I imagine investing in foreclosures is associatied with flipping the property for a quick gain. "No Money Down" would involve holding onto the property for a time (a few months at least)as it involves Lease-Purchase contracts.
It would be amazing if you could combine them though, as your returns would be astronomical.
Any thoughts?
The Mortgage Recycler|
No Money Down - Creative Real Estate Investing|The Foreclosure Mogul
|
Mon Jun 20, 2005 10:28 am |
|
|
bong12187
Preferred Member
Cash: $ 24.50
Posts: 120
Joined: 31 Jul 2005
|
| Re: Foreclosures and No Money Down |
|
|
quote:
Originally posted by almu
How do foreclosures tie in with no money down. What's the scope for combining these two approaches to real estate investing?
Have any of you tried to combine them and what were your experiences? I imagine investing in foreclosures is associatied with flipping the property for a quick gain. "No Money Down" would involve holding onto the property for a time (a few months at least)as it involves Lease-Purchase contracts.
It would be amazing if you could combine them though, as your returns would be astronomical.
Any thoughts?
I'm surprised no one have commented with your post. I'm also noticing posters here giving advices but their only involvement with real estate are having their own homes or by reading materials about real estate.
It is possible to combine both. I once bought a property foreclosed by the bank. I offered below their asking price and informed them that I will put a 10% down (no money came from my pocket). I had no money at the time. When they accepted, I went to my credit union and borrowed 25k. I used the money for down payment, closing, and repair. I kept the tenants promising them that i'll fix the place. They stayed and they paid for the mortgage and the loan while I repaired the place. Each unit I fixed, i doubled the rent the rent (some are month to month while I have to wait for others lease expiration. Each time I raised the rent in one unit, the tenant moved out. I was able to get other tenants that pays 100% more. This gave me more passive income to pay my personal loan. Once I paid off my personal loan I was able to keep more passive income. Since I had no money invested in this deal, my cash on cash return is infinite. I am in the process of refinancing the property and keep 70k in my pocket without having to pay a dime in taxes.
|
|
Sun Aug 07, 2005 7:05 am |
|
|
|
