No money down does not mean no credit check!
Everyone who gets started in real estate investing wants to
learn how to do real estate deals "No Money Down."
The Million Dollar question is what does "No Money Down" really
mean?
A lot of folks think that "no money down" means that no money is
down on the transaction and they could not be more wrong.
Just because a deal is a "no money down deal" does not mean that
there are no monies that are put down on that property.
What it usually means is that any monies that are put into the
deal do not come out of your own pocket!
Big Difference!
Let me give you an example.
Recently, we were contacted by a lady who was behind on her
mortgage by $14,000.
Her mortgage balance was $147K and she was looking for someone
to pay her delinquency of $14,000 and she wanted $10,000 to walk
away from the property to restart her life.
Now here is the good part.
She estimated the current market value of the home at being
between $247,000 and $300,000.
So let's look at these numbers.
$147k Mortgage balance
$14k Delinquency
$10k to owner of record
Total $171K
If we subtract the $171k from the $247k (that the home is now
worth at a minimum) that adds up to a $76,000!
And if the appraisal comes in higher, this one deal could be
worth up to $129,000!
Now, I have a very important question for you...
How hard do you have to work to earn $76,000?
How hard will you have to work to earn $129,000?
The profits in one real estate deal can be staggering!
Now, I will not address why this lady would be willing to enter
into such a deal. I did recommend that she attempt to sell the
home herself but she really did not want to do that.
The purpose of this "secret" is not to determine why she was
willing to do such a deal but to reveal to you that she was
willing to do such a deal!
Now do these type of deals come around everyday?
No they do not!
But they really don't have to, now do they?
I know what some of you are saying right now...... "That's fine
TC and Vickie but I do not have $24,000 to enter into this deal
you just described ($14,000 + $10,000) or the $171,000 to secure
a new mortgage! If we did we would not be on your web site in
the first place!"
Which brings me back full circle to what "No Money down" really
means...
Do you think you would have any problem finding an investor that
had excellent credit to secure the new mortgage or the $24,000
(if you were going to structure the deal another way)?
Do you think that an investor would think twice about
participating in this deal for, say 50% of the profits?
You would have investors fighting to fund this deal!
If the numbers are right in the deal, finding the investor to
fund that deal is never an issue.
Remember: "No Money Down" does not mean that no money is in the
deal!
"No money down" also does not mean your credit will not be
checked!
That is a BIG wake up call for a lot of folks who start
investing in real estate!
For us, being self-employed for years has meant almost the same
thing as UNEMPLOYED!
It's either chicken or feathers on Friday night depending on how
well your business is doing and how well your cash flow is. So
our credit has suffered through the years.
We never could have started investing in real estate or secured
our dream home here in Florida if our credit had to be checked!
And we know that we are not alone!
In our course, we teach you specifically how to invest in Real
Estate without credit checks!
We have never had our credit checked one time when investing in
real estate!
Not one time!
Most people want to know why that is and that is a good
question.
Most of these transactions are with owners who have a distressed
situation.
These owners have a problem which, if you have specialized
knowledge, you can assist them with and profit because you do
have this specialized knowledge.
Now notice I said Distressed situation not Distressed property.
There is a big difference!
For example, one deal we recently did the owner had moved out of
the home months ago and was now making 2 mortgage payments, one
on the home he was now living in and another mortgage payment on
the one they were trying to sell.
The home was gorgeous but their savings were exhausted. Because
we had specialized knowledge we were able to offer a solution.
Again, these type of deals are not credit driven and my credit
has never been checked one time! In our course we give you the
exact recipe we follow that allows us to invest in real estate
without credit checks!
Truly caring for your success, TC and Vickie Bradley
http://www.tcandvickiebradley.com