Can I Makes Millions Buying Real Estate With No Money Down?
It’s a big country and you can be sure that each year someone will win the lottery, someone will get hit by lightening, and someone will buy a home at a steep discount, with predatory terms, and no money down. The odds in every case are grim.
The essential issue is NOT buying property with no money down, it is buying property which can produce a positive cash flow and/or be sold at a profit. Unless one or both of these conditions can be met, then the economics of buying a home with no-money-down are unlikely to make sense.
Those buying under the VA program can buy with no money down, and residential financing with 5 percent down or less is widely available, especially for first-time home buyers. However, all of these programs require appropriate credit and income.
In fact, there are even lenders who in the period between 2000 and 2007 would make loans equal to 110, 115, and 125 percent of the property’s value to qualified borrowers. Such loans, however, are NOT recommended for various reasons, including high costs, a likely inability to write off some of the interest (see a tax pro for details), and the cashflow problems which might arise if there’s a need to sell quickly.
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