Buy Real Estate With No Money Down and No Credit

Buy Real Estate With No Money Down And No Credit

December 18th, 2008

Is it possible to buy Real Estate with no money down and no credit? If you have been taking classes by some gurus that say anyone can get into Real Estate with no money down and no credit, then you might be under false impression that even with no money in your bank account, bad credit and no access to any funds at all, you can still get into Real Estate. The truth is, for 99% of the Real Estate investors out there, if you have no money or no credit, you must at least have access to funding to hold any Real Estate properties. If you neither have money nor credit or any sorts of funding, then you cannot buy Real Estate and hold. The most you can do in a Real Estate deal is flip to another Real Estate investor.

For 99% of Real Estate deals, you either need cash or credit. While you don’t need both cash and credit, it helps to have one or the other.

Where to find cash advances?

If you want to buy Real Estate with no money down, you can find cash advances by replying to all preapproved credit card offers. Many new Real Estate investors do that to get a large credit line collectively. One credit card may give you a few thousand dollars and they add up to a lot of money, enough for you to use to buy Real Estate properties or rehab fixer upper homes if necessary. Of course, you should plan to never tap into those cash advances but it is vital to know that if you need them they are there for your use.

Of course if you want to buy Real Estate with no money down and you have no credit, the chances are you will not be able to qualify for the credit card offers or cash advances. In this case, you will need other types of funds. Credit cards are a source of fast cash because you can use it immediately since they are already approved whereas Mortgages are complicated.

Buy Real Estate with none of your own money

A lot of Real Estate investors refer to using credit cards or loans as buying Real Estate with none of their own money. While the money, credit or cash advances they use technically belong to the banks or lenders, they have to qualify for them some how. In the past, Real Estate investors used to be able to go to any hard money lenders with great properties and the hard money lenders will lend them enough for a rehab. However, nowadays, even hard money lenders will also look into your credit. So, for someone with no credit, it is hard to get a loan for whatever type of properties they are looking to get a deal on.

Avoiding fees for cash advances

If you are buying Real Estate with cash advances from credit cards, you want to use the cards with the lowest interest rates possible. Many cards have promotional rates of 0% for 6 months to a year. If you buy your Real Estate properties with the 0% credit card and you have not sold the properties by the time the interest rates reset, then make sure you do a balance transfer to other credit cards with low rates. Surfing credit cards like this is a creative way to buy Real Estate with no money down.

Real Estate Investment