2006-07-18 02:12:59 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
They're legit, however you need a beacon (credit) score of at least 750 for a good loan program with low interest. What they are saying by no money down deal is that you use other peoples’ money for "creative financing". There are two ways to "create" financing for your investments: either traditional institutional lenders or hard money lenders, (which are people who are in the money lending business), or you’re going to create financing with people who do not typically make loans (such as sellers or private lenders). Either way you will still need some type of down payment to show that you are willing to work with them a little. As long as there is very little repair to do on the investment home you should come out with a profit; however you need to weigh all the information together very carefully, as it is not a "get rich quick" type of venture.
2006-07-18 02:47:07 · answer #1 · answered by t j1 1 · 2⤊ 0⤋
Robert is correct. It's amazing how many people in the real estate profession don't know the different ways of acquiring property. They think that a no money down is a 100% finance job using conventional lenders or that your credit plays a part in the transaction.
The answer to your question is that they are legit. However, you can learn this stuff at your local bookstore and reading free articles at www.reiclub.com.
Good luck to you.
Regards
2006-07-19 05:45:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
All these people are correct about needing good credit scores, however that's for NORMAL real estate investing.
The stuff you see on tv, they don't use NORMAL loan methods so you don't need any credit. There's plenty of ways to buy real estate without credit or money. Yes they are legit, I know from personal experience.
2006-07-18 11:50:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
To keep the interest rate under control I'd strongly recommend paying a 10% down payment. Yes, you can find a 0% loan but they rates will kill you.
Also, for for a 15 or 30 year ixed mortgage. Don't go for an adjustable-rate mortgage (the rate almost always goes up every year). And don't do an interest-omly mortgage. They start out with cheap payments, but all at once after a period of time they skyrocket to huge amounts.
2006-07-18 10:36:31 · answer #4 · answered by TumbleTim 4 · 0⤊ 0⤋
They're legit, but they're expensive. Less cash down means higher interest rates and higher payments. So, if you can afford it, put a little down on your new house!
2006-07-18 09:17:02 · answer #5 · answered by Privratnik 5 · 0⤊ 0⤋
0 down means higher interest rates, higher home insurance.
2006-07-18 09:25:48 · answer #6 · answered by jmharley79 2 · 0⤊ 0⤋