Buying Property With No Money Out Of Pocket.
Can Anyone help me out? How do I buy property with no cash and get cash back.
Can Anyone help me out? How do I buy property with no cash and get cash back.
We can help, but you'll need to do some reading or course taking before it will make any sense...
hope this helps,
clear2close
[addsig]
Welcome to real estate investing. Your question is right on track, but you must take the time and study the technique. Check the training material available on this website, visit the library, talk to friends, read the articles with areas of interest to you and gain the knowledge. As you become familiar with the terms and lingo, your confidence will build and before long it will no longer be a foreign topic.
You have our spirit of support; you can do it!
Eric & Rosa
[addsig]
The reason you're not getting a straighforward reply is because your question has been answered elsewhere.
But because I think that explaining concepts keeps them fresh in ones mind, I'll explain it briefly here in an example.
Conventional lenders will only loan on the purchase price, NOT the appraised value. This is because real estate in only worth what a buyer is willing to buy it for NOT what an appraiser says it's worth. To get a no money down deal with conventional lenders search for seller carryback in the forums.
To get cash back at closing and no money down you'll have to get a Hard Money loan. You can get a 70% loan based on the appraised value of the property. So if you saw a property appraised for $100,000 and you offered $65,000 ... you'd get a $70,000 (70%) loan from the Hard Money lender. That leaves $5,000 in your pocket. This is obviously too simplistic cuz there's fees and such but you get the picture.