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2. No-doc and
low-doc loans. No (or low) documentation of your
income or credit required. Again, you can find
banks that do these online now. The catch is
that you will only be able to borrow up to 80%
of the purchase price or property value. If you
have 10% in cash, you might be able to borrow
the other 10% from a friend or the seller.
3. Seller-carried second mortgages. Sometimes a
bank will loan you 90%, and allow the seller to
take back a second mortgage from you for 5%,
leaving you needing only 5% for a downpayment.
4. Land contract. Called "contract for sale" or
other names as well, this just means the seller
lets you make payments, and delivers the title
upon payment in full. I sold a rental this way
for $1,000 down, because I wanted the 9%
interest, and the higher price I got this way.
5. Credit cards. If a seller will take $10,000
down on a fixer-upper that you expect to make
$20,000 on, why not use credit cards? This is a
true 0-down deal for you, and if you turn the
project in six months, you will have paid $900
in interest on an 18% credit card. Don't let
$900 get in the way of making $20,000.
6. Retirement accounts. The laws get pretty
complex in this area, but you can check with a
tax attorney to see how you might borrow from
your own retirement account to finance real
estate investments.
7. Friends and family. Keep it all business, if
you use this source, but loaning you money at 7%
isn't a gift if their money is getting 2% in the
bank.
8. Note buyers. The seller needs cash. He raises
the price, and sells to you for $100,000 with no
money down, taking back two mortgages from you
for $90,000 and $10,000. He arranged (or you
did) for a note buyer to pay him $80,000 cash
for the first mortgage at closing, getting him
the cash he wanted. You pay two payments now,
one to each note holder.
9. Get a loan on other property. Interestingly,
if you take out a home equity loan for a
vacation, and then forget to use it for that,
you can use it for the downpayment on an
investment property, without violating the rules
of the bank that gives you the primary mortgage.
In other words, you got in with no cash of your
own.
10. Partnerships. For bigger projects, you could
arrange for five investors to each put money
into a partnership, with your share being the
management responsibility instead of cash.
By:
Steve Gillman
Article Directory:
http://www.articledashboard.com
Steve Gillman has
invested in real estate for years. To learn
more, and to see a photo of a beautiful house he
and his wife bought for $17,500, visit
www.HousesUnderFiftyThousand.com
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