Private Money: Purchasing Real Estate with No Money Down

The most successful investors in real estate are the ones who master in the art of creative financing. They know very well how to start purchasing real estate with no money down. The best methods of this creative financing are to find private lenders that are also called private money.

Here the funding comes from a private source like friends or family members and you can buy property with no money down. Besides these, you private sources can be business acquaintance, or a professional. If you have no capital or a less-than-stellar credit rating then also you can begin purchasing real estate with no money down. Private lenders lend money in low-return investments such as an IRA, Certificates of Deposit (CDs), or low-yield mutual funds. Whenever you come to such a person offering strong deal that can bring them a higher percentage then, they will say yes and your dream to get going purchasing real estate with no money down will also be fulfilled.  You can borrow 100% of the purchase price including repair costs and other closing costs if they say yes repeatedly. You can then buy property with no money down. Basic steps that must be followed to commence purchasing real estate with no money down are:

Creating the Deal First: Most of the beginners think that it is impossible to set off purchasing real estate with no money down before negotiating a deal. The details that investor will need to know are: Anticipated sale price, Repair costs, Purchase price, Selling costs, and Loan to value. The more information you present, the better the informed decision is made that can help you to start off purchasing real estate with no money down. Once you find a willing private lender, and then make sure that money is available readily.

The standard rate for such type of funding is around 15% and Loan to value range between 65% and 75%. All this should be decided in advance because it helps to start purchasing real estate with no money down very easy.

Finding the Lenders: If there is difficulty in finding individual who fits these qualifications, then try an ad in local newspaper seeking private money.

Besides this, there are people with money “for hire” who can make your dream to start purchasing real estate with no money down come true. After that you will have a number of private lenders.
Once you begin thinking creatively about financing the deals, you can easily begin purchasing real estate with no money down.

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