OfflineHi guys im pretty new to the real estate world and i had some question pertaining to the whole no money down procedures. What are the advantages and disadvantages and most of all what are the requirements for qualifiying for it, would i have to pay more interest on the loan. All you info will be very helpful so thanks in advance....
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Welcome aboard to Dean Graziosi .com .
As far as no money down goes , you should start assigning contracts to buyers .
Those buyers are the ones you have networked with and created a list of available investors to purchase homes from you .
The only qualifying would be for hard money loans rehab loans . But as you are starting out , I would just assign contracts to buyers or be a birddogger for them and get paid a finders fee.
Dean's books clarifys all that I am talking about. Also , there are a ton of great people with a lot of info provided .
Just don't dawdle , take action today !!
Happy Holidays !
Randy S.
Elkton , MD
You had a question about the advantages and disadvantages of doing no money down deals. I will tell you from experience that there are potentially much more advantages than disadvantages.
1. There is no bank qualifying. If you have tried to get a bank loan for a home, then you are aware that a lot of factors will come into question. How much money you make every month, how much you spend every month(expenses), and so on.
2. There's no limit to how many of these transactions you can do. If your credit is good, the banks will sometimes try to limit how many different bank loans you can have. That is not the case with no money down deals.
3. The transaction is between to people. This is important because you can look the seller in the eyes and interact with him or her. You can build rapport, which is good because you will be paying them every month.
4.Flexible terms. You can set whatever terms you like as long as the seller/buyer agrees.
Just to name a few...
As far as disadvantages, I guess it is all in what you would call a disadvantage. Will your interest rate be higher through no money down deals? Maybe, it depends on the sturcture of the deal. Will the financing come entirely from the seller? Are you raising capital from outside sources?
As you can see, this is just a small example of all that you can do under a no money down umbrella. The most important thing is don't be afraid to ask! That is the only sure way that you will not do it. There are dozens and dozens of people on this site who has performed a no money down transaction.
Hopes this helps!
Jeremy K.