With no money, weak credit, and no one to help, how does one come up with a down payment to do a seller financed deal?
Save money, fix your credit, and help yourself to come up with a down payment to do a bank financed deal ... MAGIC! Not the answer you wanted or an easy or a quick one, but I believe it is the right answer. If it were easy, everyone would be multi-millionaire RE investor.
Thanks. I knew THAT. But this is the CREATIVE forum, and people are buying homes all the time without going the conventional route - which is what you describe. I can't afford to wait 10 years while I scrimp and save to come up with a down payment, only to find that I've missed the bus and/or now the banks are requiring 30, 40, or 50% down. No thanks.
How about a car title loan, or call the banks that have your credit card and ask for a higher limit with cash advance. Ask a family member to go in with you as a money partner you do the work and split the profits. Join a local REI Club and seek out members to create a Joint Venture project. Partner with the property owner for a short term project and cash when sold. Get more credit cards to use to buy material. Start with a property that won't cost you an arm and leg to rehab. Something that you can quickly paint and clean and rent out with the understanding of the tenant that you are continually working on the property for thier benefit using thier rent money to do the work.. Volunteer the house as a project for a local high school shop class to come and work on the house, you supply the material they supply the students to do the work.
@Glenn Mayo while this is a creative financing forum its not a creative get cash quick increase credit score fast forum. What @David Faulkner said is the best option. You need to have some cash $5-10K as no seller willing to go seller financed is likely going to allow you to purchase with no cash.
I was in debt over my head just 3 years ago ($30K+). I decided to ditch the credit cards sell the car that had a loan and get a second job and focus on paying off any debt which also helps increase your credit score. I am now debt free and tons of cash in the bank ready for my next 20-25% down payment. After you take care of any debt and credit score issues you can likely buy a property the FHA route which is only 3.5% down and I don't see that changing any time in the near future.
I don't know anyone that invested while they couldn't afford to and was successful. It all takes time.
Thank you, Mike. Those are the kinds of suggestions I was looking for.
if you have the skills to find a deal that has cash flow or a large amount of equity control it with a contract of sale with a study period. Enough time so that you can put together a friendly joint venture. The joint venture should be able to raise the money you need.
Excellent idea, Charles. Thank you.
Keep them coming!
Glenn, I've learned that most problems in life stem from the root. Far deeper than the problem we are trying to solve. My suggestion is educate yourself. Read, read, read. When you can answer the philosophical question "what is money" you'll know how to attain money. I'll answer that question for you. Money is a tool, an employee as Kiyosaki would say. Whether you have $5 or $5000, leverage your employees to a larger number. Make exponential growth your friend. The entrepreneur finds value where others don't. If you could buy item x for $5 and sell for $10 (100% increase) how many times would you need to do that to get to $5k? Of course these are vague terms, but the same principal that applies to any investing. Think smaller.
Charles Parrish good answer can you inbox me please I want to discuss more