DC Fawcett – Tips To Start Real Estate Without Money

DC Fawcett Virtual Real Estate Investing club

Are you interested in starting a real estate investment company despite no cash, bad or poor credit score?  If your answer is yes, the doors are open for you. What are you waiting for? Just grab or avail the opportunities wherein you can get financial assistance to establish yourself and free yourself from all the debts. DC Fawcett gives you some tips to start your real estate investment business without any investment.

Tips to start real estate investment without money

If you have huge debts to repay or facing the foreclosure, there is nothing to worry as there are plenty of options to start your real estate investment business. If your credit score is awful, it isn’t the end of the world. You can still avail loans from some of the sources. Here are the tips.

1. Hard/Private Money Lenders

   If the banks don’t approve your loan application, owing to your poor credit score, you can resort to hard or private money lenders who can help you. There are certain criteria for loan approval in this option. The fees and the interest rates may be high.

2. Wholesaling

   You need not have a high credit score or large amount of money down. Real estate wholesaling consists of finding discounted properties that are given to the prospective and potential buyer who is getting paid to do that.

3. Home Equity

   This is another option for the investors who have no upfront money. It is an added advantage as the property value has gone up recently. The investor has two options to avail finance.
   Rewrite the first mortgage and opt for a reverse mortgage.Keep the first loan aside and add a home equity line of credit.

4. Seller Financing

   With this type of financing, the investor directly deals with the seller or the homeowner and sign an agreement that states about the due date of paying the interest and the consequences of default that has been agreed.

5. Borrow money from family or friends

   If you have little or no money, but are from a well-to-do family or friends, you can borrow from them with an assurance of paying them back. You can do this by writing a promissory note with payment dates and the rate of interest. You need to take certain factors into consideration before approaching them such as your relationship with them and how it will get affected if you are unable to repay them.

Conclusion

Understanding your credit score is more important if you wish to avail for further loans. Your loan approval depends on the credit score you have.

Some tips on real estate scams - Dc Fawcett

Introduction

With the boom in the real estate industry, real estate investments have been shooting up rapidly. With an increase in the real estate investments, scams too are occurring frequently. In this article, DC Fawcett gives guidelines on the various types of scams, how consumers can protect themselves from scams and the indicators of scams.

Types of scams

Property rented by people with no leasing rights

Those who don’t have leasing rights on their properties rent them to potential tenants. They then disappear with the first month’s rent, security deposit and sometimes even the prepaid rent.

Charging future tenants with money for background verification

Prospective tenants are asked to pay money for background checks. When hundreds and thousands of tenants pay this, a lot of deposit is accumulated by the scammer.

Copying legal advertisements and posting it with their own details

Scammers often copy legitimate advertisements and post it with their own contact information. They then make some excuses for not being able to show the property. The tenants are then convinced to pay without seeing the property beforehand. Once the scammer gets the money, he vanishes                      

Fake cheques

Scammers contact the property owners who have advertised their homes on the internet. They then transact rental prices and send cheques to the owners. The cheques are written in excess of the actual rental amount. The scammers demand a refund of the excess amount, saying that they will back out if they do not get the refund. So the owners pay the refund. But, the owners find out that the cheques are counterfeit when they deposit it in the bank.

The crime doer actually shows the buildings to the potential tenants.

In these scams, the scammers are actually show the buildings to the tenants. Tenants then move in only to be told by the bank that the property does not belong to the scammer.

Ways to avoid scams

People should be cautious of scams:

Potential tenants should verify the renter’s personal details like income, track record and others and follow up closely with the individual

People should never wire funds to strangers

People should check the security deposit amount in their state before paying.

People should check with the county recorder to know who owns the property that they are going to rent

They should check the authenticity of the property owner by calling the property manager.

People should ask the owner for an application. If they fail to produce one, it is a scam.

They should not receive checks with overpayment.

Conclusion

There are plenty of scams occurring in the realestate industry. For example: This complaint was received by the programming manager of a non-profit firm which had campaigned for loan modification. A fake company posing as a government-affiliated housing agency had cheated the unsuspecting homeowner out of $10,000 promising loan modification. After giving cash for phony “processing fees”, the victim was left five figures poorer with no mortgage relief in sight. So people should be careful about scams. The tips given by DC Fawcett will be of great help.