No Money Down?
I am anew investor looking to purchase my first rental property, and the seller is motivated. My real estate agent says that the seller can not legally pay all of the closing cost. Can someone walk me through a no money down deal?
Lease option, take subject to the existing financing OR because there's a realtor involved, find 100% financing for non owner occupied. People will say this isn't possible but it is. Just all in how you structure the deal. Find a good mortgage broker who either has a warehouse line he can fund out of or who works with a portfolio lender.
If you're paying no more than 80% of value this will work all day long.
There are banks in MD that will allow unlimited Seller Credits. You need to call around and ask that question until someone says they work with a bank that allows it.
Lori
I received your e-mail
[addsig]
Even when you're doing deals conventionally (ie, buying a listed property with a realtor and a loan in your name) you can still do "no money down" deals.
It's your bank or mortgage broker that should be telling you things like that NOT your realtor. Tell him that his job is to find you properties not loans.
Up to 6% is generally accepted. More than that raises eyebrows. You can have a lender finance 80%, the seller 20% awith a 6% concession. There's your "no money down" deal.
Check with KBank, I am pretty sure they have a 100% financing deal. I am not sure if they do this with Rental Property I do know people that use them for Rehab's.