Buy Undervalued Properties and Get 100 Percent Financing

You can get 100 percent financing of income property by "doing your homework early. Here's what you can do for quick results using undervalued property:

Choose an area of a city, town, or state you want to buy property in.
Become a "mini-expert on this area by studying what are called the "comps or "comparables for the area. This means you study the prices for various size properties sold in the area. Do this by getting info from local real estate agents, from the county records, and so on. Get to know what a two-bedroom home sells for, a threebedroom, and so on. Or the selling price of a small 10,000 square feet office building, and so on.
Look for undervalued properties in the area. Such properties might need some minor exterior cosmetic work. Or they may not be fully rented and you can work to find suitable tenants quickly.
Estimate using the "comps what the property will be worth after you have the cosmetic or rental work done. Your fixed-up value should be 25 percent more than what you plan to pay for the property.
Plan on buying, fixing, and then refinancing the property quickly after you acquire it.
Activate your down payment strategy using the following downpayment loan technique.

Get a Down-Payment Loan Guarantee

Some BWBs have trouble borrowing the down payment for an undervalued property for which they need 100 percent financing. Friends, relatives, and other people they approach to borrow the down payment money are reluctant to part with funds they have in the bank, in a 401(k), or other savings account. If you need a guarantee for a down payment loan you can overcome such reluctance described earlier in this way:

Ask the person you're seeking money from to guarantee (cosign) with you on a loan for the down payment.
Tell your guarantor that he or she need not supply even one penny all you're asking for is their signature on a piece of paper.
Give your loan guarantor a written promise to repay the down payment loan within two months after you receive his or her guarantee.
Use your loan guarantee to borrow the down payment for the property.
Acquire the property; do some minor fix up, as detailed previously, using local contractors for the work.
Have the property reappraised at the higher value.
Refinance the property at the higher value.
Use the excess cash you get from refinancing to pay off the down payment loan and as seed money for the down payment on your next property. Thus, you have 100 percent financing of your first property and you're on your way to acquiring your second property the same way.

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Buy Undervalued Properties and Get 100 Percent Financing

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