APO, AP · Member since 2016 · 168 posts · 54 votes
So I have been studying more and more into creative financing and different ways to purchase properties with a low amount of cash needed. I have also noticed that a lot of people want to get into real estate with a very low amount of cash for the entire process. As I have been looking more and more into it, I have come to find out that going into purchasing a property will require some sort of your own cash at some point including attorneys, appraisals, inspections, etc.
Has anyone actually been able to have these costs covered or not needed or am I right about actually needing cash for this?
I bought a duplex in May and paid $0 at closing due to value being higher than the sale price. All closing costs were rolled into the loan. Only thing I paid out of pocket was the $600 inspection.
Well I hate to burst your bubble, but I am not lying. Most sellers agree to this because they get interest on the secondary loan. Most of them have ballon payments at 5 or 7 years as well. Meaning by the entirety of the loan needs to be payed back to the seller. You do this by refinancing, paying off the seller and then having the property with one loan under one bank at 80% LTV. I agree, most people do not agree. But nothing amazing or great happens without hard work and dedication to just ask the sellers. I have been denied way more than said yes too, but if you want to grow rich you have to put the work in.