Buying Real Estate With Bad Credit Or No Money Down

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Buying Real Estate With Bad Credit Or No Money Down

Is it possible to buy or purchase a house, or apartment, or flat, or some other real estate if you have bad credit, or have no money to put down? Yes.

Now, to buy property the conventional way, you must have good credit and money in the bank. Without both, without money or good credit or preferably both, buying real estate is difficult; neither the owner nor the bank nor any other the lender will normally take you seriously. But is there anything you can do if you have no credit, or bad credit, or you haven’t saved enough for a down payment?

Here’s the secret: You need to find an owner who is as motivated to sell as you are to buy.

You, my friend, are what we call “the unconventional buyer”; you will have to be more creative.

Getting Around the Unconventional Buyer Label

Being an unconventional buyer means that you simply cannot call up a real estate agent, drive around, find a property you like, and make an offer. You’ll probably have to find someone who will be willing to work with you and your situation.

How? Here’s the secret: You need to find an owner who is as motivated to sell as you are to buy. What you are looking for is someone who needs to quickly get out of a mortgage, or a person whose property has been on the market for an extended period of time. There is no shortage of those these days, unfortunately.

There are many reasons a house or other real property may not have sold easily. It could be that it is in need of major repairs. Maybe it’s in a poor location. Perhaps it just has an odd floor plan, a small backyard, or some other similar reason. Maybe it’s because of the bad market. Whatever the case, your job is to go find that hungry motivated seller, because hungry motivated sellers are creative sellers, and that’s what you need.

A Few Ideas on Finding Hungry, Motivated Sellers

The empty house: If you are an unconventional buyer, when you go out looking around for a home as an investment, the best thing you can find is an empty house for sale. An empty house is a house that is costing someone a lot of money. It signifies that the owner has probably tried to sell it, couldn’t, has moved, is now stuck paying two mortgages, and needs to sell the house. An empty house is an unconventional buyer’s best friend.

Ads and signs: The magic words you are looking for with any sort of real estate (a house, duplex, commercial property, etc.) are “owner will carry the papers.” or “owner financing available.”  This means that the owner is willing to finance all or part of the sale.

The victim of divorce: This is harder to find, but equally lucrative for the unconventional buyer. A divorce, especially a bitter one, often means that the parties need to sell the house quickly. If you can locate one of these, a creative offer can sometimes work.

Estate Sales: When an elderly person dies and leaves a home or other property to his or her heirs, the heirs will often put it up for sale. Here again is the possibility for an unconventional purchase, as the place may need extensive remodeling, and/or the heirs may not agree on how to proceed.

If you are willing to take the place “as is,” you may be able to get them to sell it to you in order to save them from additional headaches.

Pre-Foreclosures — A building that is on the verge of foreclosure is a building where the owner might be very amenable to a creative financing deal. Rather than have a foreclosure on their credit, many owners in this situation are willing to sell the property, even to a needy buyer. Foreclosure notices can be found in the real estate section of the classifieds, in legal newspapers, or online.

It’s actually a great time for the unconventional buyer. Good luck.


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