Real Estate Investing With No Money Down

So you want to get into real estate, for personal or investment purposes, but you just do not have the cash to get you started. Purchasing real estate is still possible even with out a down payment.

Below are a few techniques, provided the seller is willing to negotiate and has a genuine interest in selling the property as soon as possible.

Buying with no money down.

The simplest method for real estate investment is to take over their mortgage payments. This is called assuming the mortgage. Naturally, you will need to be approved by the original lender to assume the mortgage. If you cannot be approved for an assumable mortgage, you may also try a subject to assumption mortgage, which means that you make the monthly payments while the property remains in the seller's name.

What if the seller asks more than what the balance is on the mortgage?

If the seller wants a higher price than what is owed on the mortgage, you can still assume the mortgage and then get a second mortgage with the seller for the remaining cost of the house. Offer the seller a high interest-only payment for a short period, for example two or three years.

At the end of the term on the second mortgage, you should be able to refinance the property and pay off the seller. Unless there has been a downward trend in real estate, your real estate investment should have gained value in a few years.

There is no mortgage to assume-then what?

A majority of mortgage lenders want to make a good investment. While your local bank may still shy away there are plenty of financial lenders that would love to make a deal and finance your loan.

Finance companies like real estate. The mortgage is usually based on 60-70% of the value of the property, so as long as they know they will get their money back in the value of the property if you default. Complete the deal with a second mortgage created with the seller.

As you can see, there are ways to invest in real estate as long as the buyer and seller work together.

Posted by Patrick Rey on December 13, 2008 at 12:00 AM

About Patrick Rey
Patrick Rey is affliated with Prudential Professionals Realty, which is located in Clarksville, TN. For further assistance please use the contact information located on the right.

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Local Information for Clarksville, TN

Latitude: 36.559383 -- Longitude: -87.358261

ZIP Codes for Clarksville, Tennessee	37040 37041 37042 37043 37044
Area Code for Clarksville, Tennessee	931
Time zone for Clarksville, Tennessee	CST

Other Area Cities: Pleasant View, TN Dover, TN Clarksville, TN Hopkinsville, KY

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Clarksville is a city in Montgomery County, Tennessee, USA. As of the 2005 census estimates, the city had a total population of 123,395. Today, Clarksville, is the county seat of Montgomery County and is Tennessee's fifth largest city, and the fastest growing city in Tennessee. Clarksville is the home of Austin Peay State University, and is approximately 10 miles from Fort Campbell, Kentucky Army post. The U.S. Census says that Clarksville is the fastest-growing large city in Tennessee and the 17th in the nation. It was the only city in Tennessee to make the top 25. Pat Summittwas born in Clarksville, Tennessee and she is the winningest Division I college basketball coach of all time. Clarksville is part of the Clarksville-Hopkinsville metropolitan statistical area (MSA). Clarksville has the distinction of being home to the oldest bank in the state, the Northern Bank established in 1854, now AmSouth Bank; the state's oldest newspaper, The Leaf-Chronicle. -- Source: Wikipedia.com

Tennessee 2000 Census Population Profile Map

	Clarksville	Tennessee	United States
Population	103,455	5,689,283	281,421,906
Median age	28.8	35.9	35.3
Median age for Male	27.8	34.5	34
Median age for Female	29.8	37.2	36.5
Households	36,969	2,232,905	105,480,101
Household population	99,375	5,541,337	273,643,273
Average household size	2.69	2.48	2.59
Families	26,965	1,547,835	71,787,347
Average family size	3.12	2.99	3.14
Housing units	40,041	2,439,443	115,904,641
Occupied units	36,969	2,232,905	105,480,101
Vacant units	3,072	206,538	10,424,540

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Real Estate Investing With No Money Down

Local Information for Clarksville, TN

Latitude: 36.559383 -- Longitude: -87.358261

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