ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
21.08.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


How to Buy Property Using Other Peoples Money

Author: Javaid Kiyani Author Ranking Bronze | Posted: 21-06-2008 | Comments: 1 | Views: 68 | Rating:  (259) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

Purchasing property without the use of your own capital is not difficult as long as you are able to learn different strategies.

Typically, the easiest property to buy no money down is the one which has been on the market for a long term. Long term here would mean several months. Generally, the longer the period of time a property has been on the market for, the more motivated the seller becomes. Hence, it becomes easier to negotiate a lower price and hence get a good deal.

When negotiating with the vendor of a below market value property, the buyer should prove to the vendor that he has sufficient funds for the purchase of that property. This can be done by showing bank statements or any documents evidencing credit status. In this way, the seller will be assured that his loan will be satisfied from the resale of his property.

The buyer should also check the sellers mortgage statements to ensure that his offer price is able to meet this obligation. If the offer price is less than the mortgage amount, the mortgagee will not be satisfied on completion of the sale and hence the sale will not be allowed to proceed.

Several parties are involved in the no money down buying process. Firstly, a surveyor will value the property you are considering purchasing. If the price you are buying the property for is truly less than the true value of that property, this will be reflected in the surveyors valuation figures. Solicitors and financiers are also involved in ensuring the deal goes ahead as planned.

The property purchasing funds that you apply for need to be based on the valuation figure and not the purchase figure of that property. This way, your mortgagee may be able to lend you the entire amount of the purchase. Often, if the discount is big enough, you can also receive cash back from this type of deal. Again, this depends on the purchase, price, valuation figures and the mortgagee who is lending to you. Rental calculations are also taken into account especially if you are purchasing the property as a rental investment.

For a truly no money down deal, none of your money should be used for that transaction. This would also include monies required for conveyancing and surveyor fees etc. These additional expenses can be paid for using interest free credit cards and low interest loans. You can repay these loans later on using the equity in your property especially if the market is rising. Obviously, in a falling market, some of these strategies become more difficult to implement and you may need to use other methods. This is why it is so important for you to keep your eyes on the ball and ensure that you remain educated to the latest techniques and standards.

Rate this Article: Current: 5 / 5 stars - 1 vote(s).

Article Source: http://www.articlesbase.com/real-estate-articles/how-to-buy-property-using-other-peoples-money-457085.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Dr Javaid Kiyani is a successful Property Investor and Internet Marketer. His vast knowledge of property investment is evidenced by the books he has written. For a FREE course including regular advice and tips on property investment, please visit: http://www.hmopropertyriches.com

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha

0
1. jack (16:35, 21.06.2008)
no money down is definitely the way to buy property

Related Articles

Using An Estate Agent To Source Below Market Value Property
By: Javaid Kiyani | 03/10/2007 | Non-Fiction
To achieve phenomenal growth in your property business, you need to source below market value property. Contrary to popular belief, estate agents are still a great source of good property deals. This article discusses how estate agents can help you to grow your property business.

Always Negotiate The Best Property Deal
By: Javaid Kiyani | 16/06/2008 | Real Estate
Correct property negotiation will result in the acquisition of the intended property at the desired price. This article discusses issues you need to consider when purchasing investment property.

No More Ugly Houses; How to Buy Real Estate Now
By: Lance T. Walker | 06/08/2008 | Real Estate
There are people in your area right now who will sell you a pretty home, in move-in condition, in a nice neighborhood, for much less than it's actually worth. You DON'T have to deal with tenants. You DON'T have to buy and fix up some broken-down shack in a bad part of town.

Property in Canada
By: Les Calvert | 26/11/2007 | Real Estate
A look at the overseas investment market in Canada. What are the hot destinations for property investors looking to invest in real estate in Canada.

Running A Successful Property Investing Business
By: Javaid Kiyani | 07/06/2008 | Real Estate
This article discusses several aspects of running a successful property investment business.

Property Investment Is Not A Get Rich Quick Scheme
By: Javaid Kiyani | 06/03/2008 | Real Estate
You cannot get rich from investing in property overnight. Property investing is a serious business that will need nurturing from the outset. Improve your knowledge base, stay motivated and acquire a good team to help you to achieve your property goals.

The Importance Of Maintaining A Good Credit Rating To Help You In Your Property Business
By: Javaid Kiyani | 16/06/2008 | Real Estate
Managing your credit standing can be a difficult and challenging task. However, a good credit rating is essential if you want to succeed as a property investor. A bed credit rating will often mean that you are unable to fund property purchases and your business will suffer greatly. In this article we discuss some useful strategies that anyone can adopt to maintain a good credit standing.

Choosing Investment Property to Make You the Most Money
By: Kevin Kiene | 20/12/2006 | Investing
Choosing investment property that will make you the most money "in the end" can take some planning and homework. Take the time, choose the right investment and you will be greatly rewarded.

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Real Estate Articles

Chennai's Expanding Real Estate Market
By: George Gonigal | 21/08/2008
Chennai is experiencing an extensive real estate growth in past one year. Chennai real estate developers are having a good business deal happening during this period of time.

Mortgage Bill by End of Year to Boost Property Market in Northern Cyprus
By: Linda Cartwright | 20/08/2008
Sungur: A Mortgage Bill has been proposed, for approval by the end of this year, in Northern Cyprus. The plans are set to boost property market, and some experts suggest that the move will also benefit ex-pats. A draft mortgage bill prepared by the Estate Agents Union has been presented to the...

Achieving Your First Property
By: Joaquin Costa | 20/08/2008
Buying your first home is not easy, but for sure it is rewarding when you manage to safe and pay for the deposit of your new home.

House Door Choices
By: Ed Terran | 20/08/2008
When you decide to remodel and want to change out doors, do not forget a couple of important factors. The style must match your décor or the doors are not going to enhance your home. They will actually take away from the look you are trying to achieve. The fittings...

We Buy House Professionals Taking Advantage Of The Slow Real Estate Market
By: Shaun Greer | 20/08/2008
Real estate investors are buying houses while other home buyers are sitting on the side lines

Chinese Developers Look For Foreign Funding
By: Gregory Smyth | 20/08/2008
The Chinese property market and property management in China have largely been a domestic affair in recent years, with tight government controls to ensure that speculative inflows remained at a minimum. However, the government is now wanting to cool down the rampantly growing real estate market in China, and as such is looking for foreign investment.

The Benefits to Purchasers of Home Auctions
By: Patricia Stevens | 20/08/2008
The real estate opportunity is huge, especially the foreclosure and tax lien market. Read about the income being created by everyday indivduals.

Right Now is the Time to Buy Real Estate in Provo, Utah
By: Art Gib | 20/08/2008
Real estate has never been easier to find or more affordable in Provo, Utah. For a short time, the market hit a decline and prices lowered.

More from Javaid Kiyani

Buying Land For Profit
By: Javaid Kiyani | 22/06/2008 | Real Estate
There are certain factors which need to be considered when buying land. In this article, we discuss the purchase of land for profit.

Organization And Management Of A Successful Property Business
By: Javaid Kiyani | 22/06/2008 | Real Estate
A property investor needs to treat his business as a serious business. You should therefore have several procedures and processes in place to ensure the efficient running of your business. In this article, we will discuss several ideas on how to organize and manage a successful property business.

The Mechanics Of Buying Property From Auction
By: Javaid Kiyani | 20/06/2008 | Real Estate
Before you buy property from any auction, you need to do some serious research. In this article, several useful tips any auction property purchaser can use when considering an auction property are discussed.

Always Do Your Homework Before Buying Property
By: Javaid Kiyani | 19/06/2008 | Real Estate
You should always do your homework before buying any property. Here, we discuss various things you need to consider before and during your property purchase.

How To Hire And Manage Builders For Your Property Development Projects
By: Javaid Kiyani | 18/06/2008 | Real Estate
Hiring and managing builders can sometimes be daunting. In this article, we discuss some of the things you will need to remember when you want to hire a builder and the things you have to do when you find the right one.

A Landlord Should Always Have An Assured Shorthold Tenancy Agreement
By: Javaid Kiyani | 17/06/2008 | Real Estate
Any good landlord will provide a shorthold tenancy agreement to his tenants. This serves as not just protection for himself but also covers the tenants rights.

How To Find The Best Tenants For Your Properties
By: Javaid Kiyani | 17/06/2008 | Real Estate
Various checks and measures need to be undertaken before accepting any tenants for your properties. In this article, we look at how to best source the best tenants for your properties.

The Importance Of Maintaining A Good Credit Rating To Help You In Your Property Business
By: Javaid Kiyani | 16/06/2008 | Real Estate
Managing your credit standing can be a difficult and challenging task. However, a good credit rating is essential if you want to succeed as a property investor. A bed credit rating will often mean that you are unable to fund property purchases and your business will suffer greatly. In this article we discuss some useful strategies that anyone can adopt to maintain a good credit standing.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below