And pick up all the information you can on the internet. Even as a banker i think that it is best to buy property via mortgage is in the event something goes wrong you have options, if you charge it up without any RE backing you will be screwed. It is also a bit difficult for a college student to get $50K in low interest credit card and to make matters even worse they will not be able to pull cash from those cards at the normal transaction rate.

Correct. As you said their are two kinds of people in this business: The professionals who make money, and the amatures that may make a bit but mostly lose.

I was looking at it strickly from him getting the $50k perspective. What we cannot tell over the net is what condition the house is in, what it costs to keep said house. IE what is the tax rate? What he has in reserve in order to fix the house. What the house needs. What nice houses in the area are worth. What he wants out of the house. Lots of unknowns.

Trust me Gotta I can figure out interest, and getting money for deals isn't that hard part. Its what the money wants from you. I am just starting to see this, private partners can be sharks. Their is a venture capitalist out their to finance anything, but they can be pita's and want a lot.

Finance is a very interesting subject and I am only scratching the surface. I havn't gotten that deep into it yet, what I do know is their is no such thing as a free ride and get rich quick crap is just that.

You don't understand the idea if you think it is stupid. Big talk for an inexperienced teenager. Paying high commissions is stupid. You will learn this when you actually do a few deals.

What is stupid about using free credit card money or a family loan for a month or so while you obtain a free fixed rate mortgage from a traditional bank? Nothing, this is (was?) a golden opportunity. Check on no fee HEL loans. HEL stands for Home Equity Loan. It is not a HELOC which is a variable rate line of credit. You have to have some kind of bridge financing to obtain title to the property so that you can get the no fee HEL from the bank.

Run some searches on respectable financial forums, this is not a place to get advice which will affect your financial well-being.

Your posts in this thread are full of presumptions, get a grip. Assuming will cost you more in life than almost any other mistake that you could make, assume nothing.

Not all HELOCs are variable, in fact almost all of them have a fixed option. You and gotta are a perfect match perhaps you can run the post count up on his website, at least there no damage can be done(because nobody will be looking). Why would you use a credit card while waiting for a "free" FRM when you can have a mortgage from a lender in less than 7 days?

However I do agree that if you have a family member with the cash by all means use it, at least someone with a vested interest will keep an eye on it.

BTW what is a "free" FRM.

Again, what is stupid about it?

A college kid risking that kind of money while taking advice from the internet is stupid.

Because the way I outlined is free or nearly free. The traditional approach costs thousands in fees. On a $50K purchase the fees are percentage wise, ridiculous.

BTW, I have never heard of a fixed rate HELOC. Thanks for that tip. My only interest in an HELOC is to hide equity, I don't keep up them. Even if it is fixed it is probably still revolving credit and not as cheap as a simple interest mortgage like an HEL?

Well now this really is getting stupid. If he can't raise the money he has no option but to pay the establishment what they ask. There is nothing to discuss.

Advantageous use of capital is something many never have the luxury of considering. If you can make it work for you, great. If not, back to the grindstone.

Have fun boys and girls, back to my life of leisure.

You need to learn the difference between front end, back end, yielding and par. Nothing is free.

too be honest the Title, Recording and transfer tax would exceed the "cost" of a mortgage.

I am talking about a no fee loan, not a loan where the fees are "rolled in".

The title, recording and transfer tax depend on where you are and who handles the transfer. That is why I said go straight to a title agent. Shop for prices at title agencies. They are usually owned by a RE attorney. Shop attorneys also.

I do respect your specialized knowledge, if you want to explain any of this I will be happy to learn. I will be buying property for years to come and can always use new angles.

Mortgage rates are calculated by the current bond rate the yield on that mortgage is anything above or below the par rate of 100.000 which is the cost of the note to the lender, this is the back end. The front end is the origination or the loan discount fee, the broker or lender is not allowed to receive any money from fee's like appraisal, processing, underwriting ect. Many brokers add in funding fee's and anything else they can name to make a buck but the best way to differentiate $hit from Shinola is the TIL (Truth in lending rate). When you apply or a mortgage and get a rate quote legally they have to provide a Good Faith Estimate and TIL, the interest rate on the TIL is a combination of all of the fee's and is you true interest rate.

In summary pay more attention to the TIL than the GFE because GFE's are often made to be confusing or misleading.

http://www.lenderhomepage.com/Forms/Truth%20in%20Lending.pdf

This is a sample TIL I am sure you have seen one, most bankers try to speed you through it but it is the most important form in the loan process IMO.

I don't want to toot my own horn but I work for the best lender in my area, we have in house underwriting, funding and ethics are strictly enforced. When you are shopping ask them if they are a broker, lender or corresponding lender. The best companies are usually self funding and have in house underwriting. Our underwriting is in our office and I have constant contact with the underwriter if I need special information.

But back to mortgages you need a mortgage banker that is going to place you in the right product, rate is not always the best determining factor for a mortgage. A good banker is going to place you in a good position is hopes of many transactions and referrals.

Get a grip???:silly: ......You contradict yourself so much in one thread that ordering the moderator to get a grip is funny.

There is no such thing as free credit card money. Be one minute late on a payment, or exceed the credit limit and you will find out how free that money is. My neighboor is a bankruptcy attorney and he works seven days a week and still has to turn down clients. Most of his clients have to file because they got into trouble with credit cards. People risk financial suicide if they take out enough money in cash advances on credit cards to buy a house.

No fee HEL usually involve hidden costs of some sort. Someone has to pay for a appraisal, inspection, title search, document stamps, closing costs ad nauseum. No bank will make a HEL to someone that has so much outstanding in recent credit card debt, on a run down propert that has little curb appeal at this point. There are many legit ways to buy a home with little or no down payment, and pay a regular mortgage payment.

I have a grip, on my wallet.

I Getting a good rate on CD's from the bank is advantageous use of MY capital. In essence, I am loaning people like you the money you need to buy a house with cash advances on credit cards. A slow nickel works better for me than a fast dime.

Ego's aside the worst part about using CC's for investments is when something goes wrong the investor gets screwed. Like john said when the limit is exceeded or a late payment hits the boat starts to rock and when it knocks the debt ratios, debt limits or credit scores out of whack things become a mess. A fairly simple fixed line of credit becomes impossible and the alternitives are expensive.