Notice I did say consult a mortgage broker first, that would be step number 1. This discussion may be pointless if he can't get the funds. Thats where the leg work on his part comes in, money can come from many sources a mortgage lender is but one, but is probably a good place to start.


If you are buying property with credit cards you had either better have a trick up your sleeve and like to gamble, or you are simply nuts.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

yeah like make sure it doea not sit on an old toxic waste dump or have ancient city drain line liens underground that don't appear in title searches...etc....if the land is worth more than 50K, at least u can burn the structure down and build up a new !

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1979 300D 220 K miles
1995 C280 109 K miles
1992 Cadillac Eldorado Touring Coupe 57K miles SOLD
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1979 240D 140Kmiles (bought for parents) *SOLD.
SAN FRANCISCO/(*San Diego)
1989 300SE 148 K miles *SOLD

What else would a mortgage broker say? Tell him why.

You need to do your homework too. We have done exactly this with zero percent credit cards and no fee HEL loans, saved many thousands. The best deals are over but it is still worth an informed search.

Once again, do your homework. If you go into your first RE purchase with blinders on a whole army of people will line-up to take a cut. Some of the people replying to this thread also stand in these lines. You will be be paying for your lack of diligence for years.

Granted on a purchase of this size your mistakes will be small but as a percentage of your wealth it may cut deeply.

Twitch,

You're a trip (a smart trip!)

MM hasn't busted my balls lately so I didn't wanna say it. The guy has to eat - so I can understand.

I spend a lot of time on other forums, and I love it when a pro responds and says, "You should call a Pro" -- well, DUH! You gotta (hehe) eat too... but NO THANKS!

Not totally over. I just did CitiCard 1.99% fixed for life with no transfer fees for $30K.

That ain't bad... considering!!



P.S. But some SOUND advice: DO NOT be late or slow pay or the rate jumps up to something sick like 22% or some such insanity... that is about the only catch.

You should call a pro if you are clueless because if you screw up it is going to cost you.

Frankly if he were in my area I'd consult with him for free, but thats just the kind of guy I am.

BTW Jeff probably owns more real estate then you guys put together. I know several people with millions, one with hundreds of millions worth of holdings and I know they would laugh at the credit card idea.

Like I said you may get lucky with something like that if you are quick and know what you are doing. But its not always worth it.

Their are also legal ways of buying said house with no money down, Visa cards are not involved.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Huh? Now that we know you know people with millions... that's super. The fact that "Jeff" has more real estate than all of us put together is super too. The only problem is that the OP doesn't have millions.

He's a young person trying to start out, and I give him praise for that.

Yes, a guy with several million in assets would have no need to for the credit card method, which is why they would "laugh" at at. But a guy just starting out may want to steer clear of a person looking to line their pockets with his money.

There are times when you need a "pro" and times when you don't. With the internet (and the ability to read), getting a mortgage and/or cheap funds for a house is NOT one of them. There are also organizations that you can turn to for low rate loans. I know two people (lucky bastards) that have both borrowed $200K @ --- get ready -- 3.75 FIXED -- Fees? NONE. ZERO. Oh, and both those people were the types that were just starting out... NOT the types with "millions and hundreds of millons, etc."

OP, Do you home work, and read - read - read - read... and when you're done... read some more!!! Pick people's brains the best you can. Remember there are a zillion people that want to lend you THEIR money so they can make money from you... so play the competition well. Also remember, right now, they have been use to living very fat on the land since the market has been VERY good to them. Most of them are still living fat on the land and don't have the same business they did a few months ago. This is a great thing for you. Don't be afraid to negotiate with everyone from the title company to the bank. If you do an inspection... negotiate with them too (I hate the inspectors since their answer to most things is, "I don't know.")... any way...

Good Luck!

Pete

They would laugh at the credit card idea because it is stupid. The reason I bring that up is because people that live and breath real estate would consider the idea stupid because it is frankly.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Ok, then when you buy your first piece of real estate talk to "Jeff" -- he'll be happy to spend his cut on a new toy.

Jeeze, a mod that calls other people's ideas stupid.

What, Hatt, you don't watch infomertials? You gotta believe, man.

Another guy that would rather see a person pay 6.25% (less tax bracket) instead of 1.99%.

The second best part is that you can then take a HELOC out on the primary property and buy something else.

Naturally... funny how some people don't want to see other succeed.

Welcome to the conversation my Doe-Eyed Friend.

I know I should stay up to 1AM and buy those get rich quick books.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Hatt,

Instead of blindly following the pied piper, do the math.

Say you need to borrow $50K. FORGET what it is for.

If you borrow it at 1.99% you are paying $995.00 a year interest to borrow that money. Interest means the money that you have to pay back above and beyond the principal (principal is the money you've borrowed -- you have to pay that back too!) -- I'm sure a smart fella like you knows that.

Now. If you go to your friend "Jeff" -- what's the very best he can give you? MAYBE 5.5%... and that's a super-strong buyer (unless you go for special low-income first time buyer deal (these deals make the people in the mortgage business have a stroke, because the banks are compelled to do them, but there are few hands in the pot) -- I think you've got a couple bucks in your pocket, so I'll assume you're not able to get the low-income deal.

So now you've borrowed $50K from your "friend" "Jeff" @ 5.5%... let's say you're in the what? 15% tax range... maybe? So that 5.5% in essence becomes 4.675% -- Which means now you have to pay the bank $2337.50 a year in interest. See? You want to pay the bank LESS. NOT MORE to borrow the money. The less you give the bank, the broker, and all the others, the more you keep to buy MORE and build more wealth.

So next time a person shows you how to make more with less, don't just follow the piper... think it out. The people that you think are your "friends" are really out to line their pockets with your hard-earned money.

I'm not saying all people have the fiscal responsiblity to borrow money like myself and others are telling you too. For most of the lemmings in this world, it is better to have a hand-holder during the mortgage process -- reading and thinking takes a lot of time for some.

Best Wishes in your new career, etc.

Pete

The part that I think is stupid is a young man in school has no business buying a distressed property with little or no real estate experience. I know the value of professionals and although I have been in the game a long time I hired a Realtor in my area to sell my own house. Unless you have a ton of reserves to lose or solid backing and good advice it a bad idea to take that plunge. My main headaches as a banker, developer, investor is people with little real estate experience walking into deals without representation and in the end almost all of them lose. One thing I like about the finance end is I can steer a perspective investor into the hands of honest and trusted financial planners, Realtors or commercial brokers; I don't my money trying to grab a quick buck i make my money on multiple transactions because I helped the investor find a solid position.