Money is just not a luxury we all possess! We need it to survive, but unfortunately it doesn’t grow on trees! Does that mean that most people will never be on the I own a home list? Quite frankly, many people I’ve spoken to about this very subject believe this is a horrible time to be home shopping. They couldn’t be more wrong!
In many distressed areas homes can still be bought for pennies on the dollar verses what it may cost regularly on the housing market. Houses can be found priced between $1-$100,000+. Frankly, a person who had $5,000 could potentially purchase (5) of these $1,000 distressed homes, refurbish them, and rent them out. Better yet, make a quick buck by selling them!
I’ve always thought that owning property was important, but not to have to sign a 30 year contract to obtain! Ludicrous! There are so many distressed properties that can be beautified. I can only speak for me, but there’s no way I’d sign a contract to pay someone for 30 years…..just craziness! The goal is to eliminate the mortgage! Here we will discuss ways to become a home owner without spending large sums of money. I am sure there are more than those listed, my focus is specific.
1. Find and Flip
This is a method best used for those investors who are not looking to be property owners nor do they choose to be landlords. These investors usually locate a property, purchase it, and sell it for a profit. Often the original purchaser may refurbish the property or often buy and flip sight-unseen. The purpose of a flip is to earn a profit from the original purchase. I’ve listed a few sites to get you started.
2. Team Up
Many of us know other folks who are just as financially challenged as we are, why not form coalitions of people to buy houses together. This way each person will have the ability to save for their home. Most cultures operate this way, so all members of the family can succeed. Each person should have a bank account, a vehicle, and a home when all is accomplished. With this option you’d want to choose persons you know to be financially responsible.
Most people don’t view this option as ethically sound, but many people have gained abandoned properties using this method, of course this option is not for the faint at heart. The key with this option is to locate an abandoned home owned by HUD or the FHA. These particular houses once inhabited (after repairs and upkeep), the agencies must buy you out to request that you move! From what I’ve heard it’s usually about $5,000 depending on the situation. Unfortunately, people attempt this with private landlords, but the same rules do not apply.
Is Squatting illegal?
Translation: This is a new law. Squatting was not a crime before, other than trespassing, and in fact, Michigan also has a law allowing adverse possession, otherwise known as “squatters rights.” Previously the real owner had to file charges for trespassing. Please check the laws for your state/territory before attempting this option.
4. Pay Those Taxes
Often if a bank owns a property they want to get rid of it! Banks are not in the property business, their business is money so believe me when I tell you they will often accept most reasonable offers. Often homes are abandoned due to the owner being unable to maintain the taxes, so when they look to sell, they just want what they’re owed! Ever heard of Tax Liens? When you buy the tax lien, you don’t immediately become the owner of the home. Instead, the homeowner has another opportunity to pay back their taxes. If the bill is paid, then you get your investment back and you also receive the interest owed on the taxes.
5. Buy a Foreclosure
We’ve all seen the miles and miles of distressed properties throughout the US, so there’s no doubt an abundance of unattended, uninhabited properties that are being sold for literally pennies on the dollar. There are homes priced as low as $1-$1,000 on the low end.
USAtaxlienassociation –A platform that offers a free 7-day course to explain how to profit from tax liens.