I'm a Newbie with Real-state, But i would like to start off on the right foot
With the Investor's i work with. I joined a website just for Real-State Investors
and i asked a question about 100% financing on just the ARV only if it was possible.
I received lot's of answers back about lending me the the money from lot's of Investors but some sounded shady and from other Country's. The name's were all USA name's but when i call to talk to them the call would go straight to Google and then the transfer to the person would talk to. I'm not a racists at all, I'm a Spanish American born in this Country and i would just like to get someone to be up front about there business.
Is there anyone that would no if there is 100% Financing and whom my i contact to get the loans.
P.S I'm just asking and please no nasty remarks ok PLEASE.
Yes, there is 100% financing for investors. You can't do 100% financing using conventional loans, as it violates the Dodd-Frank Act. 100% financing is two loans. Traditionally, the first mortgage is a traditional 30-year amortized loan at 80% LTV and the second mortgage is a 10-year interest-only loan at 20% LTV. The borrower then comes in with cash to close both loans. I used this type of 100% financing in the last house I purchased in 2004 when I turned a $7K investment into over $180K in 18 months (read the blog).
You can use 100% financing with the two loans structured like above if you're not an investor because of the Dodd-Frank Act (research "qualified mortgages"). If you are an investor, you can still get 100% financing. Usually the first mortgage is at 65% - 75% LTV and the second mortgage is the for the balance of the purchase plus cash towards the rehab. Again, these are not conventional loans, so the costs are higher (interest rates and upfront points) as you will use private and hard money loans. There are companies that finance the entire cost of the purchase and rehab of the property in exchange for 50% of the profit on the backend. In this instance, the company puts together a deal where their costs for financing is deducted before calculating the profit they will split with you. They make sure that they make their money first from their regular business (loaning money). Anything above and beyond that is gravy for them, so they have no problem sharing (or taking) 50% of the remaining profit.
My management company manages real estate deals for wholesalers and investors using 100% financing in order to maximize our client's return on investment (ROI) while minimizing their risk (we shift risk to the financing companies). Let me know if you need more specific information about what a 100% financing deal looks like.
God Bless you!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing