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Preparing To Make A Zero Down Offer

I'm going to focus on the Seller of a hypothetical property you have found and the offer that you are going to make. You want to write it so it has a reasonable chance of being accepted.

Never offer more than you can afford to pay.

Don't get caught up in the idea that you are going to make it work no matter what. Let's face it, some deals just won't work and you have to let them go.

Ultimately, the person who gets the best deal is the person who is the least motivated. You have lots of potential homes to purchase... the Seller only has one home to sell.

Work up the numbers.

First, you need to know what the current market value of the property is.

Do this by going to your title company (you can pick any one you want, just look them up in the yellow pages). Title companies have access to comparable sales of homes in the neighborhood.

Look for homes that are very similar to the one you are preparing to purchase.

Value the home you are going to buy based on how it compares to the homes that have sold before it. Only use comps that are twelve months old or less.

There are two types of real estate we want to deal with here.

The first type, is property that you can purchase for cash, for at least 15% under market value. You need to sell these contracts to an investor to complete the deal.

Every investor out there is looking for these properties and will gladly pay a fee to get them.

The second type of deal is purchased for full market value by taking title to the property "subject to the existing loans."

I explain in detail how to make an offer on this type of property in my book. It is one of the easiest ways to purchase property with nothing down and no credit check.


If you haven't checked out Joe Crump's "$0 Down Real Estate Investing With Bad Credit And No Job!" yet, go to his web site for full details.


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