Free No Money Down Mini Course
Here is a free no money down course to help you guys be on your way to making big profits in real estate. The information I am giving you is a system that you can use for any type of purchase whether it is a foreclosure, pre-foreclosure, distressed property, or regular purchase.
It all boils down to how you structure your deal.
Method I
The first method I am going to share with you is “Borrow Extra Dough”.
You should always borrow extra money when the deal permits it. What this means is you add in the money for closing cost, mortgage payments and repairs. This is easier done with private investors and hard money lenders than with a regular mortgage lender. Regular mortgage lenders have much more stipulations in their borrowing terms.
Basically what you do is this:
Say you purchase a home at $100,000 with 5 percent interest rate. Your mortgage payments will be $500 (100,000 x .5 = 500). You would then have to add in your closing cost which we will say is around $10,000 (in New Jersey anyway). That takes the amount to $110,000. So now the mortgage payment is $550 (110,000 x .5 = 550).
You already did your inspection and you know that the repairs are going to run you around $30,000. This takes the loan amount to $140,000. Now the mortgage payments are $700 a month (140,000 x .5 = 700).