Home Stager · Orlando, FL · Member since 2016 · 36 posts · 13 votes
Hello BP Family,
I've read a few things and heard about people buying investments properties with little to no money. I want to know if anyone could give me any insight as to what I could do to make that happen for me. I am in a situation where I have no money and I'm rebuilding my credit. There is a duplex in my area (Orlando, FL) that has been foreclosed on in a pretty decent area and I am interested in it. Here's a snapshot of my situation:
No money
Rebuilding credit
Veteran with VA Home loan (although credit is not there)
Are there any creative solutions for purchasing a duplex in my situation. Furthermore, is there a such thing as an investor purchasing a property cash and owner financing it to me? I understand with the latter part of that question they would want a profit involved of course and likely sell it to me for more than they pay for it obviously. Is that an option? Any tips and advice are appreciated!
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
Since you are already driving a beater, eating pb&j's for lunch, brewing your own coffee and saving all you can anywhere you can...
A tired landlord that has been self-managing since Jesus was a boy could be in a position to offer you a seller-financed transaction. They do need some money for closing costs and some security you won't walk (mine usually require 10% DPs) but that's easier to get than the whole enchilada.
Obviously an REO will need the money, so you'll need a partner on this duplex. Some potential partners or lenders may come out of the woodwork here.
There is more money out there than deals in most areas, but partners/lenders will want some positives from you. We know you are broke with bad credit. What are some positives you will bring @Sabrina Hill?
Just wanted to say welcome to BP! You've already received some great advice, so I'll just encourage you to keep asking questions, reading, learning and seeking out mentors to help you along the way.
I'm an active investor/agent here based in Winter Park, so feel free to reach out anytime.
Investor · Midlothian, VA · Member since 2014 · 38 posts · 11 votes
9y
Sabrina I would offer repairs on the property to add value to seller and use that to credit to seller as down payment... always ask what they plan to do with down payment to make sure it isn't something you have such as a vacation and you are a travel agent .... another car and you are trying to sell yours. You could mentor students as a teacher and their child need mentoring or piano lessons. These are just a few examples but there are many more... just keep thinking outside of the box and you will be giving us a creative idea soon.
Specialist · Stamford, CT · Member since 2015 · 19 posts · 9 votes
9y
@Sabrina Hill yes find out if this property is actually a "good deal" first. Then get with a qualified sponsor (investor) whose done deals in your local area that you can possibly partner with. If all data points look good (he or she should know) then look for private equity or hard money to move forward. Yes, there are so many creative ways of financing real estate without ever stepping into a bank and with below par credit.