Posted on: 5 October 2017
When you want to buy property, but you are not sure how to get started, you may want to do a little research first. You do not have to be independently wealthy to buy property, despite what others might say about your venture. Here are four ways to buy property when you do not have a ton of your own cash.
If you have just a little cash, you can buy foreclosed properties. Some of these go for as little as a couple thousand dollars. Properties could go for a couple hundred dollars, but those are legendary sales that are few and far between. Usually, the properties that go for so little are properties that have been foreclosed upon by the state for delinquent taxes. You are paying the delinquent taxes, and possibly a little extra, to purchase the property.
Bank-owned properties are essentially foreclosures too. The owner took out a mortgage with that bank, and then failed to make several payments on the mortgage. The bank repossessed the home as a result. If you are credit-worthy with this bank, you can assume the mortgage via a property transfer and the approval of a mortgage on the property. If you use the property as a rental, you can easily repay the amount the bank has lent you to buy it.
Government Programs and Seized Assets
There are lots of government programs that can provide grants and low- or no-interest loans to people who want to buy property and rehabilitate it. You could apply for these grants and loans. Then you could buy property with little to no major expense to you.
There are also government-seized assets. These are properties which were in the hands of criminals, and as part of the punishment, the government seized all of the properties and homes of said criminals. They auction these properties off on online bidding sites or through police auctions. You could get properties really cheap this way too.
Establish Yourself as an LLC
An LLC, or Limited Liability Corporation, is a small business that is typically tied to personal property and funded with loan money taken out against the value of the personal property. If you establish yourself as an LLC by filing all of the correct documents, you may then take out a loan or loans against the full value of your personal home and property to fund the purchase of other properties. Just be really careful about how you do this, since failure to pay on the loans you take out as an LLC could cost you your own homeShare