No Money Down Strategies That Work

Can you get a no money down loan with private money lenders.  Most banks require an abundance of paperwork, closely scrutinize your finances and payment history, and request document after document.  Private money loans are a creative solution to easy financing and quick cash with little to no money out of pocket.

Ways to Close Deals With Little or No Money Down

Family and Friends –  People know how terrible the stock market is doing and the non-existent returns on their investments.  Why not get your loved one’s involved and offer a high return of 7% – 9% gain on their investment?  Offer them up to a 2 year guarantee while you fix and flip.  No bank can touch that type of return on investments!

Private Finance with a Self-Directed IRA – Fund through the self-directed IRA.  The advantage is you have a note and mortgage on the property, they place a lien on the first mortgage.  This way their loan is secured by the property.

When purchasing a HUD or bank foreclosure, you  want to make sure your all-in expense after rehab is a minimum of 80% Loan to value.  This will leave you 20% in equity upon completion of renovations and sell.  First, make sure you have a true appraisal number before purchasing a property.  If it doesn’t meet this criteria you might want to pass on the deal. Remember, when using a self-directed IRA, you will have a monthly interest payment plus taxes and insurance.

Using A Hard Money Lender and Offering Equity In Return

  • An experienced hard money lender can get you quick cash and offer a good deal in the process. Make sure you find a money lender that knows what they are doing and understands your current housing market.  They will be able to advise you on what is a good loan and potential return for the area.
  • Qualifying for a hard money loan is rather simple. Paperwork is simple and qualifications are less stringent that dealing with traditional bank financing. For their quick service, you can offer a percentage of the back end profit upon selling.  You will make money and typically, with this structure, require no money down.  Again, the numbers must make sense when it comes to after rehab expense and equity.  A qualified lender can assist and work the numbers for you.

For information on how to get a no money down loan call 800-403 9491.