Buying property is a good investment for the future. You can buy old homes, fix it up and sell it for a greater profit. The money that you spend on your property always appreciates in value and it can help you get other loans or mortgages to buy more property in the future. You can also build a good credit history by paying off your mortgage on time. According to real-estate experts, the times are currently in favor of property buyers; so buying anything from single homes, apartments, flats, or anything else could be a good investment for the future.
Is it possible to buy homes or property if you have bad credit or if you don’t have enough money to put down? To buy a home with a bank loan or with a mortgage from a conventional lender, you must have good credit history and enough money to put down towards your down payment upfront. You need both a good credit and a good down payment to qualify for a home loan.
Finding the right home to buy
When you are trying to buy a house without good credit or down payment, you will find that neither the Realtors nor the financial agencies will take you seriously. As an “unconventional buyer,” you will have to work harder. You cannot simply call up a real estate agent, find a house you like, and start paying for it. You will have to find a homeowner who is as motivated to selling his house as you are to buying and one who is willing to work with your situation.
Start looking for a property that has been in the market for an extended period of time and hasn’t been sold yet, or find a homeowner who is eager to get out of his mortgages. In today’s market, you will find that there are plenty of properties available that are waiting to be sold.
How to locate the house you need
Since you don’t have a perfect credit history or money to make a down payment, you will have to look for houses that are not sold easily and that are in less than perfect shape. A house can be difficult to sell if:
- It needs major repairs
- It is located in a poor area
- It has odd design or floor plan
- It does not have a pleasant appearance
- It maybe has a small backyard
- The market for houses went down
Any of the above reasons can make a house difficult to sell. It is up to you to find a house that you can live with and find a home seller who is hungry and motivated enough to hand over the mortgage payments to you.
Here are a few tips on where to find the house you want
1.Look for an empty house
When you start to look for a house to make your investment in, look for an empty abandoned house. Finding an empty house for sale is probably your best bet. An empty house means the house is costing the seller a lot of money because the owner is trying to sell the house but he is stuck paying two mortgages.
2.Classified ads and signs
Look for classified ads and signs for owner financed homes. Which means, look for ads that say the owner will finance part or whole price of the house.
3.Find divorce victims
A divorce victim is often forced to sell the house quickly. It might be hard to find a separate party quickly, but your creative offers to buy a house could work with a divorce victim very easily.
When a wealthy person dies, his property is often sold by his heirs quickly. Again, it could be a good opportunity for you to buy a house without a down payment and without perfect credit.
A property which is facing foreclose can be a very good target for your creative financing deals. Often the owners of such properties will sell the house to avoid foreclosure and agree on creative purchase deals to avoid a foreclosure on their credit history.
You can find “for sale” or classified ads, and foreclosure notices on the internet, or in the real estate section of the classifieds and in legal newspapers. Follow the tips mentioned above, and you will have a great time as an unconventional buyer of real estate. Good luck.
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Source: Balanced Life Team