willamsville, NY · Member since 2014 · 16 posts · 0 votes
I would like to find a deal in a good area and put no money down, what do terms generally look like for this kind of deal? I would like to purchase a leasing option.Do hard money lenders invest in this kind of deal?
@Starr Ango Whosesaling means finding a great deal, putting it under contract and assigning that contract to another investor for a fee. You would do this to generate cash. Alternately, you could do any job or business to generate cash. It is pretty much impossible to buy real estate with no money down unless you are borrowing from family.
@Starr Ango generally HML won't do 0 down on your first deal, but if you could find a relative, friend, etc to do a Private Loan you might have a better shot. Not sure why you are going after a lease option for your first deal, but make sure you read up on all of the legalities involved in that in NYS.
If you need capital, I would consider looking into wholesaleing to start to learn how to find a deal, estimate rehab costs, etc.
@Starr Ango I agree with @Dave Savage ... 100% financing or 0 down is very difficult to come by. Finding a partner or friends/family would be your best option. Alternatively, you can start searching for Gap lenders or 2nd position lenders, see what they require in order to go in behind your HML 1st position loan. For example, we typically lend 70% purchase + rehab. If you could find a Gap lender to cover the 30% down, you would essentially have a 0 down deal.
@Dave Savage thank you. I would like to buy and hold the property for rental cash flow. Would I be able to do this with wholesale? I would like to this in Rochester, Ny since this where I am from and know the area.
@Starr Ango Whosesaling means finding a great deal, putting it under contract and assigning that contract to another investor for a fee. You would do this to generate cash. Alternately, you could do any job or business to generate cash. It is pretty much impossible to buy real estate with no money down unless you are borrowing from family.
@Starr Ango don't forget when you buy and hold you need a capital reserve to repair the roof, replace the hot water heater etc as things come up.
Read the forums and learn all you can about the different options for real estate investing. Listen to all of the BP podcasts on your way to work, at the gym, etc and you will start to learn a ton. Whatever you do don't pay a guru for a course as I see another one is coming around our ar
If you spend some $ marketing you might be able to purchase a property subject to the exiting mortgage. But, as others have stated you really need to have some kind of cash reserves for incidentals. Even if you are able to find a motivated seller who is willing to do a subject to deal with you it will likely still cost $. You'll have to pay for closing, title costs, etc and possibly bring the mortgage current.