MAKE THE PURCHASING LOW AND THE REFINANCING HIGH This is actually a variation of 100% financing whereby, if you can come up with a lot of cash, you can quite often “steal” a property at an incredible bargain. For example, you might sometimes be able to purchase properties from desperate owners for 75% to 80% [...]
FREE UP CAPITAL WITH A HOME EQUITY LOAN. Similar to the previous method, this way to obtain 100% financing also utilizes the equity you have accumulated in your own home or in other investment properties that you have already purchased. Many traditional lending institutions will make loans that are secured by your home’s or another [...]
MAKE A BLANKET MORTGAGE. if all sellers could trust you, of course, they might all be willing to give you 100% financing on all their properties and expect no cash whatsoever at closing. After all, it’s easy to see how well sellers make out when they simply replace the bank and hold your mortgage themselves. [...]
USE ONE PROPERTY’S EQUITY TO BUY ANOTHER PROPERTY. Another classic method of 100% financing is to make a promissory note and/or mortgage on the existing equity that you may have in some tangible asset (income property, land, boat, car, even you own home) and then use that to make a down payment on some other [...]
MAKE A WRAPAROUND MORTGAGE This is another 100% financing method that happens to be based on a new type of financing called the “wraparound” mortgage. The best way to explain this is throug the following example. Suppose a seller has a property that has an FMV (fair market value) of $50,000. It also carries an [...]
MAKE THE PRICE LOWER AND THE INTEREST RATE HIGHER. Sometimes a bigger monthly income is more attractive to a seller than a greater sale price. Offering a higher rate of interest to such a person in exchange for holding the mortgage might just be the ticket you need to make the seller more flexible. Under [...]
