Buying Investment Property With No Money Down – Possible?
Is buying investment property without a down payment possible? The answer is yes if you understand how this can be managed, and the best way to do it. One method used for investment property financing is to get loan pre-approval before you even start to look for investment properties. When you are pre approved for a loan you know exactly how much you will be allowed to borrow. If you are pre approved in the amount of eight thousand dollars then you can purchase property up to this loan amount without any down payment needed. Buying investment property without putting any money down is not difficult, and there are other methods that can be used as well.
Purchasing residential investment property without any down payment needed can be done by negotiating with the home seller. Sellers who are motivated may be willing to negotiate and drop the purchase price of the property so you can avoid a down payment. Taking over the existing mortgage can be another way of buying investment property with no money down. If you use this method make sure that there is a written contract stating that the title will transfer to your name once the loan or mortgage has been paid in full. Investment property loans from some lenders may cover one hundred percent of the purchase price if you have excellent credit, but not all lenders offer this type of loan.
Buying investment property with no down payment does not just mean buying homes or empty land either. Industrial and commercial property for sale may also be found that does not require any of your money initially. Lender foreclosures are another way to get a great deal on property to invest in, without putting any money down. Many times lenders who own a foreclosure are willing to negotiate. A foreclosed property does not offer any benefits for the lender, because there are still expenses but no income associated with the property.