Buying Real Estate With No Money Down

We all know that most of the funding for real estate transactions come from mortgage loans, as cash buyers are very rare. Most of the lending institutions require the borrower to arrange for a down payment (usually 20% of the purchase price), as a condition to secure the loan. So, an average home buyer has to make this payment, and then qualify for the home loan. In other words, you must have at least 20% of the purchase price, for securing a loan, to buy that property. Is it possible to buy the property with no money down? Yes. You can go for real estate investment with no money.

‘No Money Down’ Concept

As mentioned above, borrowers have to make provision for down payments, in case of mortgage loans. Then, what is the meaning of no money down? Does it mean that you don’t have to make the down payment on a house? No. It denotes a down payment that is remitted with none of your money. In other words, the concept of ‘no money down’ simply refers to a down payment that can be made by money, which may be borrowed from friends or relatives or from a money lender. In short, you don’t have the money to make the down payment, but you borrow it from other sources. So, the concept of ‘no money down’ actually means a down payment made with money obtained from other sources. It can also be termed 100% financing, as you are buying real estate with none of your money.

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Real Estate Investing Business Plan

Real estate is one of the booming sectors and everyone wants to make a mark here. There is a lot of competition and only those with vision, passion, and the ability to work hard can achieve this success. In this field, one of the most important things a businessman should be aware of is a business plan. It basically includes creating a written outline that evaluates the economic viability of your business venture based on real estate investment. It helps you define your objectives, i.e., what you want to achieve from this particular venture. It also helps you to focus on your goals, aims, and targets.

A carefully designed plan can also help you attract more lenders, investors, and banks. It makes you look neat, professional, and reliable, which is very important for the investors so that they can trust you and believe in your abilities. It also helps you to find out probable weaknesses and shortcomings in your plan that you can improve. Mentioned below is a template for it that would help you to create one on your own.

Main Elements

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Tips For Buying a Commercial Property

If you are considering investing in brick and mortar and are thinking of buying commercial real estate, there are many points of consideration. Unlike any other investment, putting your money here, can be a tough decision to make.

Investment Tips

Commercial real estate investment is all about creating a cash flow generating asset and all your efforts need to be directed towards ascertaining its potential value. It’s no secret that these are times of economic recession and the real estate market has taken a beating. However, if you think optimistically, this is a time of opportunity, as a piece of real estate, which was beyond your reach in boom time, can be bought at a substantially lower price today. Here are the major points of consideration, while purchasing a commercial property. These are certain pertinent questions, which need to be asked, that help you assess the profit potential of a real estate investment and make your choice simpler.

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Adverse Possession

There are many rules and regulations regarding acquisition of land by adverse possession. Till today, this method has helped many people own properties around the world without buying them with their own money or making any kinds of investment. In the next section, we shall know more about this method of real estate possession.

When is Adverse Possession Possible?

In order to become an owner of a piece of land by this method, a person needs to actually possess it by physically using it. The claimant must have something to show in court which will prove that he has actually utilized the land. For instance, if as a user of the property that belongs to someone else, the person has paid taxes on it regularly, it might be considered by some courts. There is a statutory period which is the number of years for which the person needs to hold the land in order to claim ownership for it.

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Land Investment Advice

It must be noted that land investment does not mean investment in property. Land investment means investment in land without any construction over it. The piece of land or real estate that has certain construction or structure on it has been classified as property.

Mark Twain jokingly once said that, one should buy land, because its production has been stopped. In a literary sense the statement is hilarious, and from the point of view of economics it is a fact. Land which is one of the most important resources, is needed for the simplest purpose – human existence.

Demand and Supply Analysis of Land

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