realestate investment

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Permalink Reply by HUD Foreclosed on August 11, 2008 at 2:17pm

Hi Dwayne,

In all honesty, I cannot say that I support the route you're considering. In particular, serving as a "bank" would put yourself in a very dangerous situation, should the investments you would be making with borrowed funds fail. Or, what if the "participants" wish to make a withdrawal (i.e. "get out") before you have made a sale? How will you pay them? This is a venture that you would really need to consider carefully!

All that being said and proper warnings being doled out, individuals who don't have any funds available should look into government funded programs, like the FHA loan and FHA CHAFA loan combo, which provides a down-payment and primary mortgage for people who cannot afford a down-payment in California. You can learn more about other government-funded opportunities through your state's housing authority, which is linked on every State's Group page. HUD also currently offers discounts to citizens who were evacuated as a result of the hurricane.

There are other ways of creatively financing a real estate investment, as well, like teaming up with a relative or friend who has the ability to get approved for a down-payment loan and mortgage loan, if your own credit is bad. In return for a partnership and a cut of the profits, you could handle the more administrative tasks, like hiring a contractor to repair the property or making repairs yourself (if you're a carpenter, electrician, or have a certified skill in some other trade), handling the acquisition and closing of the home, doing the investment research, etc.