Will this method work?

**copaaz** · 10-04-2009, 10:18 AM

Let's say that you are interested in getting started with RE investment for cashflow. You have moderate to low credit (say 600-630). Let's say you have a foreclosure on your record. Now I know lending practices that changed over the last year but let's say you find a home that is selling for $50,000 and let's say that the actual value of the home (after appraisal) is $80,000. Isn't it true that banks will lend 80% of the value? And if that's true would it be possible to get a loan for the home at 80% of the home’s value (in this case $64,000) and be able to get the home for no money down including closing cost? Does this happen at all even with great credit? If so can it happen with not so great credit?

**copaaz** · 10-04-2009, 08:00 PM

I guess I'll take that as a yes seeing that no one wants to divulge a secret?

**Greg** · 10-05-2009, 06:24 AM

[QUOTE=copaaz;66206][COLOR=black][FONT=Verdana]Let's say that you are interested in getting started with RE investment for cashflow. You have moderate to low credit (say 600-630). Let's say you have a foreclosure on your record. Now I know lending practices that changed over the last year but let's say you find a home that is selling for $50,000 and let's say that the actual value of the home (after appraisal) is $80,000. Isn't it true that banks will lend 80% of the value? And if that's true would it be possible to get a loan for the home at 80% of the home

**Matthew 10001** · 10-07-2009, 07:49 PM

the banks will lend (LTV) 80% of the lessor value between appraisel or purchase price...
The banks want to see skin in the game....

But there are ways!

**copaaz** · 10-07-2009, 07:52 PM

Originally Posted by Matthew 10001

But there are ways!

Well, don't leave me hanging Mattew? What ways?

**Matthew 10001** · 10-07-2009, 08:09 PM

you can use methods of Inflating the purchase price so that it look like you are purchasing it for more....
First before you do this. make sure your lender is cool with this, some are, Most are not...
If you want to fraud your lender just make sure the Deal Never ever goes bad, you willl regret it, I promise....
In saying that... learn how to do a double closing, straw bailer, and basically other fraudulent strategics that have been out lawed, etc...
But if your real good and persistant in finding the right lender you can pull it off legally and safe, where everyone is cool and the deal works...

good luck.