How to Buy Real Estate with No Money Down
November 25th 2005
How to buy a Home
Late night TV is
full of seminars touting no-money real estate buying systems. Real
estate has been booming the past few years and many people have made
many millions of dollars investing. So what methods can a person employ
to buy property with no money down?
A popular method
is to “bird-dog” property. Investors are always looking for deals but
don’t have the time to search out every opportunity. Some investors are
open to deals found by bird dogging. They may pay you a finder’s fee or
cut you in on some of the action.
You may want to
begin by signing up for lists of foreclosures. There are some drawbacks
to this method of finding undervalued properties. Property owners in
foreclosure typically are not that happy. They are swamped with bird-doggers looking to capitalize on their misfortune.
The key is to find
the foreclosures before they reach the point of no return. Various
state have different laws concerning foreclosure of property. You want
to acquire the property before the owner is required to pay for the
property in full. Once this happens, the property nearly always goes
back to the bank as an REO (real estate owned).
In previous years
banks have given deep discounts for REO property. They wanted to unload
it as soon as possible. But with values increasing banks have been able
to sell properties for more money.
There are other
avenues for finding undervalued properties. HUD sells properties they
acquire from defaulted FHA loans. My wife and I actually purchased a
real fixer upper from HUD. It was a cash deal and required money to fix
it up. After two years we sold the property realizing a tax free gain.
You may want to
look for previously viewed seminars on tape. This is a great way to
learn the real estate business. There are methods of buying real estate
with no money down, but you may have to dig.
Best Syndication Staff Writer
Keywords and misspellings: reel estate estat
owned proparty properdy