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  1. #1

    Unhappy real estate with no money

    Is it really possible to buy real estate with no money down and a bad credit rating?

  2. #2
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    Quote Originally Posted by david63 View Post
    Is it really possible to buy real estate with no money down and a bad credit rating?
    In theory you could structure a seller-second into the deal to cover some or all of the down payment (if 1st lienholder will allow it). But you are still going to have closing costs and the terms for the 1st lienholder will not be cheap. Based on that credit, you'll likely need to get short term hard money bridge to acquire the property and figure the take-out financing afterward when credit improves. Main issue here: No skin in the game and credit risk.
    Last edited by rdgllc; 07-01-2022 at 10:46 AM.

  3. #3
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    No money down with bad credit? Well someone has to put money down. There are no lenders who will do 100% of a real estate purchase. Even with good credit, you need the right lender who will let gift/loan money as part of the down payment and then that person can theoretically put a 2nd lien on the house. Similar to what rdgllc said.

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    Typically a deal like this involves the seller carrying 100% of the financing.
    Obviously you have to find a seller in a situation where keeping the property is more of a liability to them, then any equity they have invested.

    And if there's financing, the bank has to be okay with the property ownership being re-assigned (many cases they're not, but sometimes they are).

    Absentee owners/landlords are the best profile for this.


    The other way is to lock up the house under exclusive contract, and then find a qualified buyer or investor.
    (This tactic is start to become illegal in some states).









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