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209 Fast Spare Time ays to Build Zero Cash - Tyler T.H.

Tyler T.H. 209 Fast Spare Time ays to Build Zero Cash - John Wiley & Sons, 2004. - 290 p.
ISBN 0-471-46499-6
Download (direct link): sparetimewaystobuildzero2004.pdf
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Thus, our equity in the condo rose $94,000 in 34 months, or $2,765 per month while we had it rented out.
“After we rented our condo out, we bought another home, our primary residence, with zero money down, for $276,000. It was recently appraised for $400,000. Thus, our equity rose by $124,000 in 35 months, or $3,543 per month.
“Hence, our total equity rose by $2,765 + $3,543 =
$6,308 per month. Now we’re refinancing both properties to buy other properties and pay off our student loans. We would love to continue buying properties with no money down. Having your equity rise by $218,000 while you sleep is very impressive!” —California
This letter is a good example of how financing available from a seller can improve your net worth quickly. Never overlook a chance to get zero-cash financing for properties whose numbers work!
Look for and Find Zero-Down Properties
If you read the real estate ads carefully every Sunday in a large-city newspaper, sooner or later you see an ad saying:
0 DOWN 3 br/2 bath beauty in_____________________.
Call 123-4567 for full info. Own your own home!
Now you may not find such ads in your hometown paper. Instead, you may have to look at ads for properties in nearby towns. This is okay for most people because the travel between towns is tax-deductible when you’re checking on your income property. Zero-down properties may be for sale by:
Use Sellers Having Built-In Funding for Your Deals
197
• Banks.
• Mortgage companies.
• Credit unions.
• Governments—federal, state, county, city.
• Private sellers wanting “out” in a big hurry.
And when a sale is offered at zero down by such sellers, it often means you get the property:
• With no closing costs to pay.
• With no down payment to pay.
• With no legal fees to pay if the seller’s attorney represents both sides.
Are there any negatives for you with zero-down seller-financing deals? In general: no, there aren’t any negatives. However, take my advice and take these four precautions when buying seller-financed property.
1. Hire a real estate attorney to represent you; it’s the safe step to take for every property you buy and you will never regret it!
2. Figure—in advance—if you can make money from the property renting it out to reliable tenants.
3. Buy—for zero down—only properties giving you a positive cash flow (PCF) every month of the year.
4. Be certain to have the property inspected BEFORE you buy so you know what repairs, if any, you’ll have to make before you can rent it out.
Over time, I’ve collected zero-down ads from papers around the country. Why? To show to “doubting Thomases” that such properties really do exist.
I’ll be glad to show you copies of such actual ads to subscribers of my newsletter, International Wealth Success. The ads—of course—will show properties that most likely will have been sold. But the ads will give you the flavor of actual, real-life offers you could have looked at. Both the name and date of the paper are given.
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Chapter 9
Other facts about zero-down properties you should keep in mind are these interesting ones, namely:
Zero-Down Property Facts to Keep in Mind
• You must be very cautious about zero-down properties you select. Look at several before making your choice.
• Look for properties having at least 2 bedrooms and at least 1.5 baths. Why? Any houses with fewer bedrooms or baths will be hard to rent.
• Never accept a substandard property because it is selling for zero-down. You could be getting into an endless drain on your income because such properties may be hard to rent to top-quality tenants.
• Seek properties having at least two parking spaces for autos. Why? Because with today’s two-worker families, both people have cars and need space to park.
Look for and Buy FSBO Properties
FSBO—For Sale By Owner—properties offer many opportunities to you to get built-in financing. Why can FSBO properties be your path to wealth? Because FSBO sellers are often:
• “Stressed out” by having their property on the market so long that they’re worried it won’t sell.
• Ready to wheel and deal so they can unburden themselves of the property and go on with the rest of their life.
• Ready to accept a sincere and honest person like you and make a deal with you that includes built-in financing giving you the property for zero or very little cash.
• Independent thinkers who believe they can do everything themselves, including arranging financing with someone they like. So if you work on getting the FSBO person to like you, you’ll probably get a dream deal.
• Likely to overlook your credit score if they feel you’re the ideal person to take over their property and relieve them of the burden of it.
Use Sellers Having Built-In Funding for Your Deals
199
Private Lenders Could Be Your Money Source
As mentioned in Chapter 6, private lenders are individuals, companies, or groups of people seeking to lend money on real estate. You can tap into these sources for the loans you need for:
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