No Money Down Investing
No Money Down Foreclosure Investing
By Buyincomeproperty.com
Oct 21, 2005, 22:44

No money down investing opportunities are important for those making a living from real estate. When you have a no money down mortgage and are planning a quick sale of the property, it frees up cash flow for other opportunities. Foreclosure is one of the hottest no money down real estate investing opportunities available. Take a look at how this can work.

A foreclosure occurs when the property owner fails to make timely payments on a mortgage over a period of time. The loan is said to be in default after 30 days, and foreclosure proceedings can start at any time after that, depending on the terms of the loan.

For the real estate investor seeking no money down investing opportunities, foreclosure sales are often great deals for several reasons. The recent occupants were usually the owners and they’ve probably taken good care of the property. Foreclosure houses are often quality real estate.

But perhaps the most important consideration in this no money down investing opportunity is that there’s financing already in place. With a little legwork, you as a no money down investor may very well work out a deal to leave the current financing as is. In some cases, you can further take advantage of the no money down investing opportunity by arranging to have payments put on hold for a period of time, giving you an opportunity to sell the house without ever having made a payment. That makes the foreclosure one of the best no money down investing opportunities around.

In a perfect no money down investing situation involving a foreclosure, you may be able to take over the loan (not assume the debt which will include the late charge that have accrued), then turn around and sell the home without ever having held the property in your own name.

That’s not to say that you’re not going to be putting any money at all into this process. It takes time and effort to find and evaluate the foreclosure properties. You’re also going to be expending the effort to turn the property into cash. But spending that time and effort on a no money down investing opportunity could pay off with big dividends.

If you can’t work out the details with the exiting mortgage holder, you may be able to talk to another lender about a no money down mortgage. Remember that a foreclosure property will often be selling at something less than fair market value because the original lender is simply seeking to recover their investment in the fastest time possible – an ideal situation for a no money down investment. That means that you may very well pay less than the loan value of the property. If you have a lender who has worked with you on other no money down real estate investing opportunities, you may be able to step right into a no money down loan that will satisfy the original lender. If you can make the sale quickly, you may very well turn a tidy profit without ever having made a single payment on the loan, effectively completing a successful no money down real estate investment.