OfflineHi,
I am very new to Real Estate Investing, but I have read Dean's book and I am very optimistic and enthusiastic.
I found a listing for ahouse that from the wording made it sound like it was a foreclosure or and REO. Spoke to the Agent and found out that it is in Short Sale.
Accoding to Zillow the house was purchased for $371,000 June '06 and now the Bank has jsut reduced the price to $245,000!
The house is a big Cape Cod style and I want to buy it and live in it. I rent currently. The outside is very nice looking, and the Real Estate agent said the previous owners didn't take care of it and it needs painting and carpets which is fine by me, that is mostly cosmetic work, no structual damage, but i guess other people have been turned off by it, or just lack vision.
I need help trying to finance it, and I would like to hear some suggestions as to what you think would be the best way.
I know nowadays it is very hard to get no money down loans traditionally. I am getting married May '10 and will have at least 10%(25K) to put down on house at that price but not until after the wedding, I have to save and pay for the wedding and can't use that money right now.
From reading Dean's book I was thinking of trying to get the bank to let me do a Lease/Buy option where I can pay the cost of the mortgage and taxes and maybe a little more to put towards down payment and then next May 2010 be able to execise the Buy option with the 10% down.
Do you thihnk this is the best way for me to try to finance this property? I don't know how the bank would feel about giving me this kind of financing options since they are probably looking to unload it or maybe they are more willing to make a deal because right now no money is being paid to them and they want to do something.
Are there other options I should be looking into? Is there a chance they may even let me do no money down loan? I don't have excellent credit but it is fair.
As I said, I am new to this but after reading Dean's book I feel that anything is possible. If I can get this house, it could be a gold mine in a few years, especially after fixing it up a little.
Any help would be greatly appreciated
Mark
Because you have a small down payment I would recommend talking to a mortgage broker, not a bank, but a mortgage broker and ask for FHA financing. You can do 3% down with FHA (federal housing administration). This will work fine for you considering that you are going to live in the property.
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