No money but want to buy a property

Malthusian

Pincher wrote: »

I understand that there used to be lots of seminars, where you were taught to buy properties "with NO MONEY down".

In 99% of cases the "no money down" secret that costs you thousands of dollars is to commit mortgage fraud. E.g. borrowing the deposit from elsewhere and lying to the lender about where it came from. Although obviously they don't say so in so many words.

droopsnoot

I went to a taster for one of these seminars, the gist of it at the time seemed to be that you'd buy the first house, get it rented, wait while it went up in value, remortgage at the new higher value and take the profit out, then use the surplus as the deposit on another house. Rinse and repeat. This was around 2005, though, and I think the proper course was around £2500, but another £9000 if you wanted to join their scheme for finding BMV property, sourcing tenants, managing the lettings and so on. Company offering the course went bust not long afterwards.

redpete

edinburgher wrote: »

Still, always nice to revel in the misfortune of others

Not always, but certainly worth telling the story as a lesson to someone who would like to "buy a property without any money".

colsten

droopsnoot wrote: »

I went to a taster for one of these seminars, the gist of it at the time seemed to be that you'd buy the first house, get it rented, wait while it went up in value, remortgage at the new higher value and take the profit out, then use the surplus as the deposit on another house. Rinse and repeat. This was around 2005, though, and I think the proper course was around £2500, but another £9000 if you wanted to join their scheme for finding BMV property, sourcing tenants, managing the lettings and so on. Company offering the course went bust not long afterwards.

LOL. Brilliant concept of buying a property with no money. Concept only works after you have parted with £10,000+ of your "no money".

Pincher

About thirty years ago, oil prices dived, and Houston, Texas crashed economically: too reliant on oil. The story goes, expensive pets were walking the streets, because their owners couldn't afford to keep them any more, and were possibly homeless themselves

A petrochemical engineer got made redundant, so he walks into a property auction, and picked up a block of flats for US$10,000. I assume it was a bank repossession. About a dozen units.

He got tenants, which easily paid for anything that needed paying. The extra refinement on the usual set up is, he let one of the tenants stay for free, and act as manager/handyman. So all the landlord had to do was come and collect the rent.


Long story short, he is living in Sugarland, where George Bush Senior also has a place. Apparently, he likes to ride his tractor, and mowing the lawn.

theGrinch

the old fashioned way....marry it

bowlhead99

Pincher wrote: »

About thirty years ago, oil prices dived, and Houston, Texas crashed economically: too reliant on oil. The story goes, expensive pets were walking the streets, because their owners couldn't afford to keep them any more, and were possibly homeless themselves

Long story short, he is living in Sugarland, where George Bush Senior also has a place. Apparently, he likes to ride his tractor, and mowing the lawn.

I had hoped this was going to be an interesting tale about how the engineer ended up living the relaxed and wealthy retirement of an ex-president by getting in on the ground floor of a lucrative interstate exotic pet import/export business.

kidmugsy

I had hoped the engineer cooked and ate the pets.

savings_my_hobby

HappyMJ wrote: »

When you hear about people buying a BTL property with no money they've remortgaged the house they live in to raise the deposit necessary to buy the investment property which is mortgaged as well. A mortgage broker can help you do this.

Their income from employment pays the mortgage of the house they live in and the rent pays the interest on the mortgage on the house the tenant lives in and just about covers ongoing maintenance costs.

It's quite risky. If you get a tenant that doesn't pay the rent on time then the mortgage will still need to be paid.

I appreciate you have to speculate to accumulate but i could not envisage myself putting my home at risk for anything.

savings_my_hobby

theGrinch wrote: »

the old fashioned way....marry it

spot on Grinch, spot on