how do you buy foreclosed homes to flip if you haven't any money?

Answer 1

You try to buy the home with no down payment (you have to have excellent credit). And you can either get a bank loan for the repairs or run up your credit cards.

Flipping houses is a HUGE RISK if you do not have money to spare.

Answer 2

Ok here it is. You have to find a seller who is about to go into foreclosure but is not yet there. Then tell him you will take over the payments for him as long as he puts you on the deed. Then you put the house up for sale asap. (in this market with a Realtor and tell them you can't pay more then 4% ) When you list the home list it just at or slightly below market value to get it sold quick. At this point, you have put nothing out of your pocket yet and you have a home that has been deeded to you but you are not on the mortgage note. This will note effict you if the home dose not sell and if it dose you have made yourself money. Now remember the seller of the house is in trouble, he is back on payments. You have to have him call the bank and autherize you as a person who can talk on his behalf, then you can call the bank and tell them that you have been added to the deed and would like to make up the payments with an arangement. You will have to take care of what ever the monthly payments are. But in the end you will profit. Please don't forget to have the sell sign his part of the house over to you or you will have to split the profit. A leagle form that states you will give MR. Seller x amount of Dollars if and when the home sells. If you need more info e-mail me.

Answer 3

1. You need to very closely watch and analyze the current market and the trend in the next 5 years.
2. You need to know how to 'leverage' the money through the collaterals. Especially knowing how to deal with bank/lender, as well as the home owners.
3. You need to have the expertise of appraising/repairing houses.
4. You need to have experiences on buying/selling foreclosed houses.
5. You need to have good credit.

It's very risky and it's a game for Pro to play. I would stay out of that at the current market condition.

Answer 4

You go to the person whose home is ABOUT to be foreclosed. If they owe less than the appraised value of the home, but just can't pay (because of lost job, or medical bills, etc.) you offer to help.
They sign a letter of intent to sell you the home. You go to your lender with this and set up a loan. HUD will generally guarantee a loan of up to 80% of the appraised value of the home. When you get the loan, you pay off all of the mortgages and liens on the home, give the owner some money IE: $5K -$10K to help him move. Then you have to put the home on the market right away, because your first mortgage payment is due a month from the day you get the loan. OR you don't have to sell it, you can rent it, providing that you can rent it for an amount equal to or greater than the mortgage payment. Then, you can use the house as collateral (sometimes called leverage) to purchase the next one.

Answer 5

One poster gave you a recommendation which involved getting a loan on a home owned by someone facing foreclosure. He failed to tell you the most important part of that - you need to find a time machine and go back about 18 months to find a lender willing to give you that loan.

The other posters are correct. Without 30% of your own seasoned funds, you will not be able to get a loan in the scenario of your question.

Answer 6

You don't. And in the current home sale market, you really have to know what you're doing to successfully flip a house - and even then, you can get badly burned.

Answer 7

you dont. tb