Not everyone has the money to buy 10 properties a year with 10 to 20 percent down. Most subject-to deal’s requires at least 7,000 between walking money for the owner and reinstatement to the bank.
So how do I become the next Donald Trump? Maybe Donald Trump without the crazy hairdo would be better!
One way to do this is to buy a new owner-occupied house each year. These can be financed 100 percent with as low as a 580 credit score. Every 12 months trade up and rent the current house you are in. Imagine if you had started this, 5 years ago and had bought 5 houses in the Cape Coral Florida? There would be a quarter million in equity at a minimum.
The biggest leap would be buying the second one. It’s kind of like kids, after you are used to taking care of two. You can add as many as you want as you are already crazy! This should be an easy transition for a new investor. Its gives you time to acclimate after the purchase. Couple this with fee based bird-dogging for other investors and in 5 years you should have the cash to be one of the big-dogs.
I would look for undervalued markets to do this. Note, I did not say high crime, just undervalued. The 33917 market has seen a 100 percent jump in median home price in one year. Yet its still one of the lowest median home price markets in SWFL.
There are properties to be had on the MLS at 80 percent or so of market value. You have to jump right on those deals but, you can find some deals once in a while. Plus you could do this with per-foreclosures as well. Offer the buy the homeowner out and have him pay your closing costs
For most of you this should be a no-brainer but if this is new to you take the ball and run with it, the mark of a true investor is the ability to think outside the box, just think if we could spend as much time finding deals as we do circumventing the road blocks the mortgage industry puts in front of us.
Allied Mortgage & Trust Inc