Buying a house is really not that hard. Even if you are broke. A few years back, I was in a situation with my family and we were behind on our rent. We had a toddler and a newborn, and had less than 2 weeks to get out. This was right before Christmas. I had to do something drastic, or we would have been homeless. I decided to buy a house…
With $400 to my name, I wrote an offer on a 5,000 square foot mansion in a town 200 miles away. The sellers were asking $30,000 and I offered them $40,000. No I wasn’t nuts. I was using a creative financing technique that allowed me to make it worth the sellers interest, and I would not have to pay anything down.
The offer looked like this:
$40,000 @ 10% interest with a 15 year amortization. This means the sellers would finance the property for 15 years with a monthly payment of around $400.
The offer was initially rejected. A week later, I had a feeling in my gut that said to resubmit the offer unedited. Guess what? the offer was accepted the same day! I knew that if I was a seller in a situation where I was out of state, and the property sat there, I would take an offer on that property rather than continue paying taxes and upkeep on it.
Our realtor paid for our moving truck, and we paid our first mortgage payment right away even though we had a month before it was due.
In our current economy, it is a buyers market. Deals like this can happen on a daily basis. All you have to do is look for the right property where it may have a motivated seller, and submit the offer on paper. That’s all it takes to buy real estate. The hardest step is getting off your butt and signing your name on the offer.