My first two "no money down" deals were maybe a bit of luck. The situation being just alter and me taking advantage of them. The first was buying my first house under the GI account with A VA loan and no money drink. My second house was buying a near new domiciliate with no money drink by allowing one of the original tenants to stay in the house for two months contract free with me taking over the loan and accommodate ownership. I used a credit separate loan to cover the two months accommodate payments. I could undergo been just lucky although it sure didn't seem desire that in other ways. I hadn't really thought much about "no money drink" as a way to buy a house those transactions just happened to be that way. I wanted to own a mortgageDuring that time of buying my second house I was also looking for another accommodate to buy. I had met an old gentleman from San Bernardino who had fifty-five houses if I remember correctly and I thought it would be nice to eventually own a few houses myself. Right now I had come to desire mortgages and how easy it was to act money "out of change state air" by creating mortgages. I desire figuring out things and I was planning on buying more houses and then reselling them with me keeping a owe on the property. That would give me a cash flow and a long-term tax right off. Since I could get two houses with little or "no money drink" why couldn't I get a third one? That first one really didn't count as far as I was concerned since it was primarily bought to live in and secondarily as an investment besides as far as I knew one could only have a new VA loan on their residence. The situation of "no money drink" isn't always the case for every VA loan and the rules have changed since I got my original VA give. You need to analyse the current rules as I believe that now unless you are a first time VA give applicant it requires a drink payment and there are some other changes. I couldn't get a new VA loan because it was an investment house so I needed to use another strategy to purchase any more houses. Fixer-uppers were a choiceI also thought I might be able to sight a fixer-upper accommodate. Once fixed up I could possibly change it and carry a mortgage thus combining my mortgage idea. I thought I might find a displace priced fixer-upper more in my determine range. I scoured the free throw-away papers looking at ads for houses for sale. Every day without fail I looked even driving as far as 50 miles to see what was advertised and look at houses. I saw a lot of houses but most were not adjust fixer-uppers and the prices were too high for the property. I be in Riverside County in a used to be rural area of southern California. It still is in a lot of respects. Being fairly rural there are not nearly as many houses for sale around here as in a big city desire Los Angeles or San Diego both about an hour away. The prices in those areas were too high for me anyway. I was lucky the prices of many houses within about 5o miles of me were relatively reasonable in be except for those in Orange County some 40 minutes away. Too bad I didn't have a lot of money to work with because I saw some nice reasonably priced houses but they required no fixing up. I felt I could work on fixer-uppers in my spare-time but I never found any reasonably priced ones. Everything I saw was much too high priced for a fixer-upper as far as I was concerned. What about HUD or the VA?From watching houses that were sold and talking to real estate agents I determined most houses from the VA/HUD in my area were going for more than they were worth. In other words people were bidding too much for them thinking they were getting a bargain. There was heavy advertising on those repos and most people probably assumed you would get a good broach. That wasn't always true. I remember one house I looked at. I was going to bid $78,000 but at the measure moment decided not to bid. I was not sure the accommodate was worth it. As it turned out it sold for $93,000 as a HUD repo. But it was probably worth only about $80,000 or in that determine range. Some times and in some areas. HUD/VA repos are very good deals but not always so do your homework before you bid. Bidding on a VA propertyWhile looking in the papers and also checking the HUD and VA repos I couldn't find many houses in nice areas. Most were in areas that I didn't want to buy in. Then bingo! I found a nice home in Loma Alta near Ontario California with a nice coat yard a big pool and the accommodate was fairly large. It was only a few years old. The only thing do by was the share was trashed and needed cleaning. Big time. It was right before the bidding closed so I hurriedly put in a sealed bid of $103,000 which I felt was reasonable and not over bid. I figured it would be too risky bidding more. I won the bid!Surprise surprise I won the bid. Was I lucky or what? What next? I checked with the VA to get the details of their financing. Surprise again. They were not offering financing like they normally do on repos. In their description of the terms it had said something about getting your own financing but it seemed in the context it was in they were referring to investors buying several houses at a time or those buying other than single family houses. I had interpreted it wrong and now I had to find financing. I didn't expect that at all otherwise I would never have bid. Whoops! I needed financingI had three days to procure financing. I called many lenders and all told me the same thing. I needed to put a huge down payment which I didn't have to get a give. After a lot of fruitless calls I came to the conclusion I just wasn't going to get a loan for any kind of drink payment I could afford. I had two houses at the time and all the lenders considered me as an investor. That almost always requires more money drink compared to someone who was going to live in the house. I think the lowest down payment I could get quoted was 15% down but that was too much even though it was lower than most quotations. No financing for meI sheepishly called the VA explained my situation and asked if they would accept me to cancel my bid or could they disqualify it since I was unaware of the financing restrictions. Being a government agency I didn't evaluate much but I was pleasantly surprised when they did just that. Furthermore there was no penalty. Understand VA/HUD auction rulesI felt whole again. approve to the drawing board. I felt there would be other chances to buy a accommodate. I learned a lesson there. One needs to understand thoroughly any auction rules or descriptions before they make a bid. In my particular case when I open out about the property above it was on the last evening of the bid and it was not possible to contact anyone at the VA to answer my concerns. I was so anxious to bid hoping to get a good broach that I let that override my normally cautious actions. I won the bid alright but lost the accommodate. Copyright © Charles HarmonCharles Harmon is a software developer. He creates websites and writes articles. A favorite interest of his is investing in real estate. Another interest is software technology and downloading free software. Charles is also interested in stocks and options found in financial investing markets. For more details tour.
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