South Bend, IN · Member since 2016 · 37 posts · 4 votes
Hi everyone! Im Mark from South Bend Indiana, Just starting my venture in the world of real estate investing after lurking for a long time. Im looking to obtain a couple single family homes for the purpose of renting them, I would like to try my hand at flipping one maybe before years end. I would love to learn ways to get deals without using my own money for the down payments or creative ways without getting into using a bank. I have been finding though even hard money wants either a credit score or proof of liquid funds in your bank account. Anyone ever really practiced the true no money down no credit check deals?
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
10y
Hello and welcome to BP! Private Money lenders or owner financing are probably your best bet, Since inventory is low you will probably have more competition. Another thing that might make it more difficult for you is that cash buyers are getting more deals because they can close quicker. Get Team members that are experienced and trustworthy. Do not try to do everything yourself. Your confidence will help you get a loan.
I am 59 years old and I found BP about 6 months ago and I am still trying to decide what to do. I got a college degree in business that emphasized real estate. That same year that I graduated from college, in 1980, I got a broker license. I closed a few deals for other people and since I felt more comfortable in the construction business. I have been in the construction business since I was 17. If you think that I might be able to help you please contact me through BP at any time. Good luck!
Real Estate Investor · Norwood, MA · Member since 2016 · 81 posts · 27 votes
10y
Welcome Mark. The BP podcasts are full of creative ways to finance deals, if you haven't already started listening to them. Pretty much every episode is some variation of creative financing. Listening to all them has definitely helped me to learn more about how I want to structure the financing side of my future deals.
Here's a couple creative ways to buy a home. I used these on my first few purchases:
Signature line of credit - most major banks will give you a LOC before they will give you a secured loan. Depending on your credit - they should start you off around $10k-$15k. Then, just pull it all out about every 4-6 weeks for a few days. Then, pay it back. This will only cost a few dollars in interest while you are building a payment history with them. After six months, go back to them and request an immediate credit limit increase. They will see your payment history and usually bump you a few thousand more. Keep doing this until you have maxed out their max limit [usually around $25k]. Now you have enough to buy a low cost home or cover several earnest money fees or maybe a rehab...
The other strategy I used is 0% credit card balance transfers. [Most] of us get these offers in the mail every few months. What most people don't know is that you can use the counter checks that come with the mailing to write you or your LLC a check. Now you have a 0% loan for the term of the offer -typically 9-18 months. [WARNING - Do NOT go to Vegas or the Caribbean on a trip with these funds!] I bought my first 3 homes like this.
Rehab - all the big box home improvement stores will give a few thousand dollars in-store credit to most people. Do this all of them & now you have $10k+ to fund your rehab. Don't get caught up on the fact that they charge upwards of 29% since you will be only carrying the funds for a few months until you sell the flip or refi the rental.
I hope that helps.
- it's always good to see another Hoosier utilizing this great site!
If you haven’t already, please read/listen to these books ASAP!
Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/podcast - LISTEN TO THIS TODAY!