Creative Finance Help
I want to purchase two separate properties with no money down. (Who doesn't, right?) 
I've been learning if a low asking price with a high appraisal is in the mix, an investor possibly could get a loan for 80% of the appraisal value. Then (assuming the value is 20% more then the asking price) I would have no money out of pocket. I'm pretty sure the properties will meet that value.
My question is how hard is it to find a financial company that will do this AND how much will it cost me to have the appraisal done? I've heard you have to have an established relationship with a lending group before they do this and an apraisal could run me up to $500.
Is that true? :-?
Generally, lenders like to see something down because they believe it shows a little risk from the borrower. There are lenders who will lend you up to 95%. I don't personally know if lenders will lend in the fashion that you are talking about but I have a lender here in Hawaii that will allow the seller to carry back a 2nd as the down payment. Couple that with a seller's concession and I get 100% financing. On my last deal, I even finished with $6000 in my pocket. Lot of different ways. Find one way and stick with it.
I'm working on 2 seperate deals myself, and after talking to a morgage guy, in ms, he tells me it is possible to actually finance 90% of the appraised value. So far its only been talk and that is cheap.
I will be finding out this next week after he reviews my paper work. Incidently my credit score is right at 700 or a hare above, and that does come into the equasion i'm told.
sorry not much help
In your scenario you still would have to put money down based on the purchase price, not the appraised value.
All mortgages are based on the purchase price and the appraised value sets a benchmark. For example, if the appraised value came in under the purchase price you would have to make up the difference plus any down payment necessary.
There are loans based on after renovation value from repairs.
With good credit, full-doc of income you can get 100% financing on investment properties. However, in most cases it is 5%-10% through conventional lenders.