FIRST time home seekers without a lot of cash on hand can buy a property without using money.
While that may sound crazy, it can be doable if you’re familiar with how loans and the buying process work.
Otherwise, real estate investor and father of two Henry Washington would have broken up with TikTok channel How did he make a profit without spending a dime on a $190,000 house.
First, he got a $161,000 loan from a local bank, which is 85% of the total cost, according to Henry.
The loan also covers 100% of rehab costs, up to $45,000.
This expense is used to renovate the home with necessary repairs to increase its value.
And he also has a private loan with a down payment of $29,000.
Henry, who founded the independent Realty Group and is from California, claimed he could later sell the house for $325,000.
The house’s gross profit was $90,000 – but when he paid off his lenders, he was left with just $70,000.
While this can help you profit from a home, keep in mind that this is the strategy real estate investors use, known as flip the house.
There are two types of house flipping strategies; one is to buy and sell assets quickly, hoping to make a profit in the market.
Another strategy starts with buying a property and figuring out which renovations offer the most value so you can sell it for a substantial profit.
Both of these approaches can be quite risky and many people make common mistake are doing this.
Furthermore, if the market crashes, you may have to sell at a loss or run into trouble with an asset you don’t want.
So, transferring a home and taking out different loans may not make sense for all buyers.
Also, remember that mortgage rates have hit the highest level since the beginning of the pandemic.
Follow Freddie Mac.
This comes as the Federal Reserve has signaled that it will begin raising interest rates in March.
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https://www.the-sun.com/money/4554705/house-flipping-profit-no-money/ I flipped my first house without using any of my money