Property Investment Articles & Resources: Latest 100% Financing Technique For Buying Below Market Value Properties No Money Down

Latest 100% Financing Technique For Buying Below Market Value Properties No
Money Down
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Parmdeep Vadesha on 28 June, 2008 06:46:00
 
Here's the latest technique for buying below market value properties using as
little of your own money as possible:
It's quite simple and straight forward.
Let's say you want to buy a property no money down worth
£100,000 and you can get it for £80,000:
1. The mortgage broker will help you apply for an 85% mortgage
on the property based on its value of £100,000.
2. My finance company will arrange to lend you the 15% deposit
(so you get 85% from the bank and the remaining 15% from us).
3. You will arrange for the vendor to sign an option agreement
provided by us stating that they are happy to sell the property
for £80,000 and anything above that will be payable to us.
4. On completion the sum of £100,000 will be sent to the
vendor's solicitor. The vendors solicitor will then pay the
vendor £80,000 and the remaining £20,000 will be paid to us.
5. We will then return to you the 20k minus the 15k deposit that
we provided minus our 1% fee + VAT.
Here Is A Case Study:
Market value of property £100,000
Purchase price £80,000
Equity £20,000
Purchase costs
Legal fees for purchase £485 + VAT
Legal fees for vendor £600 + VAT
Private finance charge 1% £1,000 + VAT (min 1k)
Mortgage broker fee £300
Valuation fee £389
Total costs £2,770
Mortgage @ 85% £85,000
Deposit from us @15% £15,000
Total borrowing £100,000
Less pay vendor - £80,000
Less deposit from us - £15,000
Less purchase costs - £2,770
Cashback £2,230
Built in equity £15,000
"Are There Any Conditions"
We will arrange and provide both the vendor and purchaser solicitor. As far as
they are concerned they are both involved in a normal transaction which doesn't
give rise to any complications that could scupper the deal. The system can be
used to purchase properties using little or none of your own money. In fact we
have over 130 deals going through at the moment from our Tycoons newsletter
readers.
"What To Do When You Have A deal"
When you have a deal please click on the following link and submit your deal
details at the bottom of the page:
>> http://www.property-finance.com/
My mortgage broker will then call you to get everything into motion. I hope
that's cleared up any questions you may have had about financing below market
value property purchases in the current climate.