Need To Get Creative With The Closings Costs? Please Help!
If anyone can throw out some ideas it would be greatly appreciated.
I am running into a streak of many motivated sellers in the NJ/PA area. They are willing to carry as much as 30% of the sales price through a 2nd and I'll bring the 70- 80% through my mortgage company. But how do I get around the closing costs. This is a big hit out of pocket, so how does this become a "true no money down deal".
I can structure many deals in the next 90 days that will become very profitable, but this is also my 1st time out there and the costs look like a big hurdle to close the deal and I am losing wind in my sail quickly. Please get back to me, thanks so much! 
What type of closing costs are you looking at? If you know this deal would be profitable paying closing costs with a line of credit isn't a bad thing at all. Many people have started that way. Good Luck.....
Investing Rule 101: Proper property analysis. You must refine your evaluation process and if the bottom line does not meet or exceed your business model? Take a pass!
It appears you are anxious and attempting to fit a square peg in a round hole.
You can do it!
Eric & Rosa
[addsig]
If you could provide more details, I have a few ideas. Do the sellers own the property free and clear. If not, would you be able to assume existing mortgage or take over their payments? Will they be willing to contribute to closing costs (in addition to carrying back a second)? Are these rental properties with current leases in place?
Have it placed into the contract that seller will contribute X amount of dollars or X% of selling price (normally 3% is what I have seen) towards sellers closing costs and prepaids. You may have to up the price of the home to get the seller to do it, but if your ratio's are still where you want them to be, its one way to do it.
Ok let me clarify, I think there was confusion. I have anlayzed the deals and they are profitable. They are structured to 100% with positive cash flow after expenses and great appreciation. My dillema is where is the money coming from for the closing costs: title search, title insurance, pre-paids, etc. I can land zero point loans, but the 3rd party fees add up to a fair amount of money, which I don't have. I don't have a HELOC and I want to stay away from cc's so how can we make this happen and close these deals without my investment?
Make deal for $100k to seller.
Purchase agreement says $105,000. Buyer & ppty to qualify for new loan. Seller to pay $5k for buyer's closing costs. Effectively, you are financing the closing costs. Seller still gets $100K