If you want to buy a house right now but don’t have any money, this is the only way.
Watch this video tutorial and learn how to get access to mortgage loans without having to show income or assets.
Transcripts:
Chris Bounds 00:00
Is it still possible to buy with little or no money down?
Eddie Gant 00:06
Yes.
Chris Bounds 00:08
How would you do it?
Eddie Gant 00:09
Oh, okay. Well, a couple of different ways. If it’s a company like jet you gotta be buying them pretty deep. We give you the benefit of buying it deeply, called we’re a loan to value lender. And there are a thousand ways to take this conversation but a lot of lenders are not loan to value lenders, they’re loan to cost lenders. Most of the national lenders that I compete with are loan-to-cost lenders, we’re a loan to value. The best way is just to take the example.
Let’s say you buy a house, it’s got an ARV. Everybody knows what ARV is after repaired value of 200,000. And it needs 30,000 in work. Really quick, I can tell you just like that I can loan you 110 at closing and 140 overall. How did I get there? 70% of 200,000 is 140. That’s my maximum loan, locking me in 70% loan to value. Take 30,000 off of that and 30,000 off the 140 because it needs 30 in work 110. 110,000 is my max advanced to you at the closing table.
So if you’re buying that house for 9 0 to 104, you’re probably walking into the table with zero out pocket cause you’re underneath that threshold. If you’re coming to the closing table pay and you paid 115 for that house. Remember my max advance at closing is 110 in this example. That means you’re bringing to the closing table 5000 plus your closing costs to the table. So yes, we do. And it’s very often that we do that. If you’re a very strong client, with strong meeting experience, credit, and cash reserves, I’ll be straight with you.
We’ll stretch to 75% loan to value with the often. And we do that often today. Even though that exceeds our 70% threshold we do 75% often if you meet those three categories. So it is possible, we do it another way if you’ve got some great terms with a private lender. The private lenders are probably willing to look at that situation to advance you 100%. Regional banks are very strong in our industry, but they’re not going to give you 100%.
But I do recommend that everybody have relationships with small regional banks, it’s key to your success in this business. In my opinion, you’re never going to get 100% loan to cost from a national lender, it’s just not going to happen. So your regional hard money lenders, if you’re buying it at the right price, and your private money people in Branson is a masters at private money. And I know maybe still a little bit his thunder here a little bit, but I know that you can do that. And that’s how you would do it with no money out of pocket.
Chris Bounds 03:12
So Brant, are you still doing no money out-of-pocket deals?
Brant Phillips 03:15
That’s pretty much all we do. Jimmy do we do 100% finance? Yeah, for the most part, we do and private lenders do. But we have similar criteria that he just mentioned. Right. Like, it’s gotta meet our criteria. But yeah, with private lenders, anything’s possible. And that’s the good and the ugly side of private lending. So if some of you are out here, there are potential private lenders, you have to really be careful and know what you’re doing.
Because I’ve seen so many ugly things arise from that doing loans that they shouldn’t have done. That they didn’t know how to underwrite or didn’t know how to screen and analyze that borrower or screen and analyze the deal when they get themselves hurt. So there are tons of you know, no money down deals going on all the time. But you gotta be careful. I forgot to finish earlier I said that Robert Allen book that I saw in 2006. I got to hang out with Robert Allen this weekend was kind of funny. I have dinner with them. We sat together and just had a great time and evening. I was like, it all started back when I saw that book, no money down.
Anyway, you absolutely can’t. And that’s what drew me to real estate. Right. So when I was just like, burned out, I hated my job. I didn’t know what else to do. Right. And I was looking at business books, I went to a couple of workshops on this kind of stuff, and pretty much everything else all needed money. You know, you need to have money or skin in the game where you got to go get an SBA loan or something. You got to have some money, and I didn’t have any money.
You know, I had great credit. I always had great credit. Right. I’ve always maintained that and as Eddie said, you want to have a backup plan with your local bank so you can exit out of it. And I’ve always had great credit, but I didn’t have money. So that’s what drew me to real estate was the creative side of it you can do no money down deals, but they got to be good deals. That’s the critical part because they’re not a good deal if it’s setting yourself up to lose.
Eddie Gant 05:12
You know, to reach the summit which was throughout we’re all wanting to do and I know Brent would agree with me here and Christy. You got to have more than one pony to ride. You know, you need to go to a hard money lender, you need some private people to go to. You need a regional bank in your corner. I mean, you got to have more than one pony to ride out here. You really do to do everything that you want to do.