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Can I Buy With No Money Down?
Question: Can I buy real estate with no money down?
Answer: Yes. Millions of people have bought real estate with no money down through the VA loan program. If you mean, can you buy real estate at a discount of 20 or 25 percent with no cash or credit, and then instantly sell or rent the place at a profit, then the answer is probably not. Why "probably" instead of "absolutely" not? Because in a marketplace with millions of transactions each year, somebody -- somewhere -- has made a deal with no money down and rented or sold at a profit. But it is also true that somebody -- somewhere -- got hit by lightening. The problem is that the term "no money down" is sometimes -- in the worst cases -- a code expression for a deal where someone without cash or credit wishes to buy property from someone who is needy, unsophisticated, desperate, in mourning. etc. Under the guide of "helping" the owner, buyers offer to purchase property at 20 percent off, or more, and with subordination and substitution clauses. Of course, if purchasers really meant to be helpful, they would surely pay full market values..... Let's be clear. If no-money-down schemes are so wonderful, why do folks who engage in such investments have a need for "partners" with cash? Rather than get-rich-quick tapes and seminars, prospective investors are best served by taking a basic real estate licensure class in your state. This will explain much about financing, marketing, title, and other issues. It will also allow an individual to take the entry-level real estate exam and qualify for a license.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2009 Realty Times. All Rights Reserved.
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