New to Real Estate · Toledo, OH · Member since 2022 · 8 posts · 7 votes
I'm currently on my journey to looking for my first deal as a newbie and having initial funds is currently a challenge. I have around $20k cash but I want to save this money for the rainy days on the property. I'm looking at properties in the 80k to 130k range. Hence, I became very interested finding someone who offers 100% financing at 6%. Not sure yet if they will also cover rehab costs.
I've checked the forum and the Internet and it seems that 100% financing is very rare and could be a hidden gemmed resource for people like me, but I am worried about the things I do not know yet. Is there something I need to be careful about? Is there something I need to prepare? Are there special processes or requirements that I need to meet first? Should I even consider 100% financing or should I simply find a way to increase my cash first? What risks you do see with 100% financing over "conventional" ones?
Any thoughts and insights are appreciated. Thank you for the help.
Realtor · Jupiter, FL · Member since 2022 · 44 posts · 19 votes
4y
Hey Emmanuel, I've been searching for a 100% seller financed deal as well. They are hard to come by in this high demand market - more buyers than there is inventory.
I would suggest checking out "expired" listings and "price decreased" listings... I've noticed my conversations with these Sellars to go much smoothly when 100% SF is brought to the table.
Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
4y
100% financing is a myth in most cases. There are some NON-QM lenders that do 100% financing on investment type properties (not long term, but rather bridge loans). These usually come with lots of experience though. A newbie will not likely qualify for 100% financing under any scenario for investment purposes. There could be exceptions, but it's largely not available. You'd spend more time trying to land 100% financing than you would putting 10-15% down and knocking the deal out with some skin in the game, and walking away 60-90 days later with some profit.