Singing Pig

 

yes i beleave u can get them motgaged 100% or more but chances r the lender will charge u higher intrest rates and not so nice a terms for the risk involed on thier part.
But if the rental yeild with other expences allowed for ther is posetive cashflow ie money left over at the end of the moth out of ur rental income after all the payments then it could be worth doing. However the real way to lower the risk and maximise ur gains is to buy the proety at 20% or more below market value that way u could get a normal mortgage with better terms and still not have much of ur own money tied up in the deal. and further more u have an exit stragagy coz u could sell it at a profit if u find the rental return is not very good i hope this helps i recoment a free course www.propetycourse.co.uk

Thanks for the info, but i dont want to rent out the property i want to buy at an auction, re-develope it and then sell on for a profit.
Once i have doen this a few times, i would then like to buy to rent.
I understand that the 120% mortgages would be expensive, but i really only want to make a small profit, then do another and another until i have enough to as i see it,,,,do it properly and make bigger and better profits,
Myself and a friend can do all the Building/Plumbing work which will save a hell of a lot.
The course isn't free, it is the very expensive Property Mentor thingy.

Thanks again, anyone else have any ideas on the NO MONEY DOWN !!!!!

If you want to buy from auctions, you would need 10% depoist to put down on the day!

Daz,

Knowledge is power. The first building block you need is to understand fully the "bad credit" you mentioned. What you din't want is to find a deal then have it fall apart because of credit history.

So, if you haven't done it yet register with Experian and Equifax. They both have websites with .co.uk at the end. You can get your statutory report for £2, or a more user friendly version for (I think) about £8. Alternatively, one of them has a subscription at £40 a year and you get e-mail alerts and text messages on anything significant that happens with your credit record (surprising how many companies and organisations check up on you).

If you have a CCJ, this is the most problematical. With this the best you can do is to pay it off asap get it marked as satisfied then add a personal statement as to why this occured.

The most important thing is to start showing responsible handling of credit now. To do this you need a credit card. Depending on the level of "bad credit" you mentioned, your strategy will have to be adjusted. Ideally what you want is a credit card that you use, and alternate between paying the full amount then every few months to not paying off some then the full amount the following month always making sure you pay on time. This will give you a string of "000000" on your credit record which other lenders will see and higher your score as a result.

Second and more easy is to open a bank account with particular institutions. My main personal bank is HSBC - they do squaddly ditt for my credit record. I have others, one of which is with Alliance and Leicester (horrible bank though). They are vey good for your credit file as every month if you have not done an "unauthorised overdraft" you again get a "0" on your credit file. There must be others that do this as well.

On your credit file, the more recent stuff carries more weight so the recent "0"'s are important.

Once you have established a responsible credit record, NMD deals will be easier to find. However, unlike the USA, True NMD deals are difficult to find. In this country many people that talk of NMD deals mean that you have to have money to do the deal, but once done you can finance or re-finance to get all your money out. So in effect it is NMD after the deal.

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The most common way to buy no money down is with a gifted deposit. You agree to buy a property that is worth £100,000, for £120,000. You persuade mortgage firm to lend you £100,000 and take a short term loan (credit card etc) for the other £20,000. On completion you hand over the £120,000 but the vendor immediately gives you back the £20,000 and you pay it off your credit card. Grant Bovey's company Imagine Homes does a variation on this theme, but it is best avoided. The whole thing relies on the collusion of you and the vendor and solicitors and is extremely high risk, especially in a falling market. Unfortunately Darren, while your plan for your child is admirable, you sound as if you need to get a more basic grasp on your finances before taking ion such a high-risk plan. If your scheme went wrong you and your family could quite easily end up on the street - and I don't think your baby would thank you for that. A lot of people believe property prices will fall over the next few years which gives you time to save up a deposit. To make a profit you need to buy low and sell high - at the moment prices are way too high.

i absolutely agree with Tony2. No Money down sounds too good to be true - and it certainly is. you have to have some money to buy a property. if your credit is bad, do exactly what DavidA suggests - after all, property is a long term investment.

i personally think that unless you know your product (property) intimately you will not be successful in developing a property - buy one, rent it out, get a feel of the property world, understand maintainance issues and costs, then buy a run down place for a refurber. if you dont know how to cost a refurber, it will become a money pit and will cost you dear.

good luck and welcome to SP

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Clottie the Positive. windswept and interesting !!

"The Lancashire Lady"

If you don't own a property and have never been through the process of buying one I wouldn't recommend auctions, I will soon have 8 properties and I am still told that they are a dangerous place for a newbie. It might be people trying to keep the prices down when they go, but you have to admit getting a mortgage in place in 28 days must be good for grey hair.

As with all investing there is risks, the art is minimising these with knowledge, or hiring people with that knowledge. Don't just go windmilling in after Sarah Beeney from property ladder has lured you in with her ... show.

I'd recommend richdad poor dad, reading these forums, and getting a foot on the property ladder first. Might be worth buying yourself a house, live there for a year, sell it / change it to BTL. Move on.

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