You might have been up past your bedtime and saw one of those late-night infomercials talking about how you can buy houses with no money down. It almost sounds too good to be true, but you can buy a house even if you don’t have any money in your pocket right now.
You don’t need cash to own a home; all you need to know is where you can get the credit to make it happen. Here we’re going to give you two ideas on how you can obtain enough credit to buy a house and an additional way that doesn’t involve any credit at all.
1. Buy the House Using Your Credit Card
The average cost of purchasing an abandoned home is more than likely only a few thousand dollars. Some of you might do a double-take when we suggest that you put the house on your credit card. You will need to brace yourself for high-interest rates and all that which goes with purchasing anything using a credit card.
If you feel like you can either flip the house quickly for a profit or rent it out for an amount higher than your monthly payment, then it makes sense to buy the house. Don’t go in debt for a home that you aren’t sure that it’s possible to make a profit from.
You will have to pay off your credit card debt as fast as you possibly can. Credit cards are notorious for high-interest rates, and you don’t want that chiseling away at your profits. Pay off the amount you put on your charge card as quickly as possible.
If you do, then it’s possible to buy another home quickly and build up an excellent portfolio of homes that you’re renting. If you’re flipping the house, then do it as soon as possible to pay off your debt. The hope is that you will make enough profit that you will be able to buy another home without the need for credit.
2. Get a Loan From the Government
Depending on where you live, there may be government loans available to buy homes. You should check with the appropriate government agency or do a quick Google search.
If something pops up after your search, then jot the number down and give them a call. The reason why the government offers loans for homes is that they want as many people to own their own homes as possible.
Also, it’s in the best interest of the city and local government for there to be as few abandoned homes as possible. Any time there are a high number of abandoned homes, there’s the possibility that crime will overtake the neighborhood.
You should be charged far less interest with a government loan than what you would when using a credit card. Ask what the interest rate is before filling out the forms necessary for a government loan. If you feel that you can repay the money quickly, then there’s not much of a need to be concerned about the interest rate.
The amount of money you owe won’t grow much quicker if you pay off your loan within months or a year. If you’re buying an abandoned house, the price shouldn’t be so high that it takes you years to pay off the loan.
3. Check to See What Rights Squatters Have in Your Jurisdiction
What’s a squatter? A squatter is someone who moves into an abandoned home and claims it as their own. In California, for example, if a squatter pays the property taxes for five years, then they own the home.
That means you will own the building and the land it’s on without having to buy it. Yes, you have to pay property taxes, but the home is yours. You should contact someone who works for the city government, so you know what the laws are in your area in regards to squatting.
Squatting isn’t an ideal situation because the owner of the home might come back, and then you’ll have to leave. It might not be easy for the homeowner to force a squatter to go, but it’s possible through several different court procedures.
You could also run into a situation where you pay property tax for several years and end up not getting the house because the homeowner comes back and makes you get out. Squatting isn’t the best way to go, and it leaves you exposed in too many ways to make it a plausible way to get an abandoned home for no money.
You’ve always got to be concerned about your safety when living in a home that isn’t yours, and the legality of you staying there is still in question.
Can You Buy an Abandoned Home With No Money? Absolutely!
The question isn’t can you buy an abandoned home with no money, but if you should. Would you want to live in a questionable home in what might be a bad area of town? If you plan on renting or flipping the house, then that isn’t a question you have to deal with.
Though, you will still have to go to the home to repair it and sell or rent it. If the area is full of crime, then you’ll have to wade through it and expect others to live in the wake of the destruction.
Many land barons get their start by buying abandoned homes. It’s possible to build up quite an empire from low-cost homes that you either rent out or sell at a profit. Hopefully you make enough money you can either scale your business or begin buying better houses.
Who knows, you might live a life like those who make those late-night commercials. Many people build up a passive income through real estate, and it’s the old-fashioned way of making money.
Quite a few wealthy families got their start in real estate, and the money was then passed down from one generation to the next. It starts with one abandoned home, and it spirals into something that fortunes are built upon.