How to Find and Buy a Bargain House with Little or No-Money Down

Real estate investors know how to make money buying distressed houses. Investors recognize that bargain houses offer the best way to make a return quickly.

Bargain houses also open up a way for first-time home buyers to buy with little or no savings for a down payment. If you want to reduce the amount of down payment needed to buy a house, get the seller to pay your closing costs. In a hot seller's market when more buyers compete for the same properties, you either need to increase the purchase price to cover your closing costs or find a distressed seller.

A bargain house may be in bad shape or the seller may be distressed. Home sellers who suffer from problems such as job loss or transfer, divorce, death, pending foreclosure, and lack of funds sell fast for less. Often these sellers offer incentives to the buyer, like paying the buyer's closing costs.

A distressed house may also be a "doghouse," a dump, or a fixer. Owners of fixers are not always distressed sellers, but they may still feel pressure to get rid of their problem house.

How to Find a Distressed Seller

Look for listings and advertisements with the words "make offer," "fixer," "must sell immediately," "handyman's special," "divorce," "owner transferred," and "owner help with closing costs." If you see two or three of these clues, you know you've found an anxious seller.

Discovering the seller's problem and finding a solution is the key to buying a bargain property from a seller under pressure. Perhaps the seller needs to close quickly; in this case, a buyer ready with financing in place with a lender who acts fast can make an offer with a short escrow. Prepare yourself for quick action by getting your credit and financing in order before you go home shopping.

How to Buy a Distressed House

You must understand that a property also needs to qualify for financing. Extreme fixers in poor condition don't qualify for a 100% purchase loan. However, houses needing only cosmetic upgrades easily pass a lender's inspection. If you find a great bargain fixer, make sure that the house will pass health and safety codes. Sometimes home buyers will help the seller with little changes that make a house "loanable." Minor changes like covering exposed wires with switch plate covers, which cost as little as 19 cents, and repairing broken windows can make the all the difference in passing inspection.

If you need help with your closing costs, find yourself a distressed seller under pressure to sell. Not only will you get help with funds needed to buy a home, you might also get a great purchase price and be on your way to making your future investing in real estate.

Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, Doghouse to Dollhouse for Dollars, and other books teaches real estate. She loves to help first-time home buyers get into a home. For a free 30-page "Credit Tips for Mortgage Financing" report, go to http://recredithelp.com

For more information for beginning real estate investors, see http://www.doghousetodollhousefordollars.com

MORE RESOURCES:

Leading Real Estate Company Announces Over $1 Billion in New ... - MarketWatch

German Stocks Slump, Led by BASF, Hypo Real Estate, Carmakers - Bloomberg

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/1-0fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601100%26sid%3DayksP2MCAmT4%26refer%3Dgermanycid=1271410742ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNFYG7urDr1hBnRO3FOs2h0hMEWjCAGerman Stocks Slump, Led by BASF, Hypo bReal Estate/b, Carmakers/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr17 hours ago/nobr/fontbrfont size=-1Hypo bReal Estate/b Holding AG sank 15 percent as Commerzbank AG advised customers to sell shares in the property lender bailed out last month. b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-1fd=Rurl=http://online.wsj.com/article/SB122690970282132973.html%3Fmod%3Dgooglenews_wsjcid=1271410742ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNGm07DA8gdXFqLMknkv0QMvAVDNWwHypo bReal Estate/b Post $3.87 Billion Loss, Forecasts Grim Outlook/a font size=-1 color=#6f6f6fnobrWall Street Journal/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-2fd=Rurl=http://www.google.com/hostednews/ap/article/ALeqM5ihEmy4YG5S0yVspjxQI1nJqBuR5wD94GK0JO0cid=1271410742ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNGBEbT0d4NWOEoE5nVN6TGUfXXvZgHypo bReal Estate/b Group 3Q loss 3.1 billion euros/a font size=-1 color=#6f6f6fnobrThe Associated Press/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-3fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601100%26sid%3DailUg_5uogwQ%26refer%3Dgermanycid=1271410742ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNHsUj10YRoK3PPR6D6R2iAmsrDCfgHypo bReal Estate/b Sells EU30 Billion of Secured, Guaranteed Debt/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/1-4fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601100%26sid%3DazN1mp2OH5SY%26refer%3Dgermanycid=1271410742ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNGKV7l031cuosQWmSKCnBENtC43jwnobrBloomberg/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/1-5fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601100%26sid%3Dayp9ArQk9t2c%26refer%3Dgermanycid=1271410742ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNGPWcLLcAvxPluRyOwaNSATS8_dBgnobrBloomberg/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1271410742hl=ennobrall 148 news articles/nobr/a/font/div/font/td/tr/table

Realtors Say Foreigners Hold Key to Real Estate Revival - FOXNews

Real Estate Market Slumps, Showhomes Soars - MarketWatch

Moody#39;s: Commercial real estate prices rise - CNNMoney.com

Winston amp; Strawn Continues Growth; Adds 19 Litigation, Corporate ... - MarketWatch

Architects see drop in real estate design contracts - Los Angeles Times

Target shareholder revises real estate proposal - The Associated Press

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/7i-0fd=Rurl=http://www.reuters.com/article/hotStocksNews/idUSTRE4AI5MH20081119cid=1271977767ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNEJij17gW6O4aNxPBFMqulGfTWuPwimg src=http://news.google.com/news?imgefp=XVuA8yiQ2LIJimgurl=www.reuters.com/resources/r/%3Fm%3D02%26d%3D20081119%26t%3D2%26i%3D6876351%26w%3D192%26r%3D2008-11-19T193234Z_01_BTRE4AI1BTF00_RTROPTP_0_TARGET width=80 height=50 alt= border=1brfont size=-2Reuters/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/7-0fd=Rurl=http://www.google.com/hostednews/ap/article/ALeqM5izZJX0Q9xiHBM5Mg3-Ee1B6sI8wQD94I9R8O0cid=1271977767ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNGRpsQ3Ol0ybqrFw5gua_BNPTjqdQTarget shareholder revises breal estate/b proposal/abrfont size=-1font color=#6f6f6fThe Associated Pressnbsp;-/font nobr8 hours ago/nobr/fontbrfont size=-1Ackman unveiled a plan last month that involves creating a breal estate/b investment trust that would take ownership of the land Target owns underneath its b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-1fd=Rurl=http://www.bizjournals.com/twincities/stories/2008/11/17/daily25.htmlcid=1271977767ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNHc5l-z4880gsG9Fz58qgKIemsbTgPershing revises Target land spin-off proposal/a font size=-1 color=#6f6f6fnobrBizjournals.com/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-2fd=Rurl=http://www.reuters.com/article/americasDealsNews/idUSTRE4AH7PD20081118cid=1271977767ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNGqsFWtN5TxH_aFZc_sQKY1YxJGlwPershing#39;s revised Target proposal out Wednesday/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-3fd=Rurl=http://blogs.reuters.com/reuters-dealzone/2008/11/19/troubled-retailerackman-5-bln-reit-ipo/cid=1271977767ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNGlGNWS7zF28ceAOfmeiqSQWNMgDgTroubled retailer+Ackman= $5 bln REIT IPO?/a font size=-1 color=#6f6f6fnobrReuters UK/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/7-4fd=Rurl=http://www.guardian.co.uk/business/feedarticle/8044333cid=1271977767ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNECNNvo-ERQ1J35tSGv7Fw1u4KKXgnobrguardian.co.uk/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/7-5fd=Rurl=http://leapsinvestor.com/market-news/ackman-target-shares-worth-37share-726/cid=1271977767ei=dBAlSbrWNIqWyASPrvG8AQusg=AFQjCNEhXUlQkj9SyjJTdCBPyQuklo_ongnobrLEAPSInvestor.com/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1271977767hl=ennobrall 129 news articles/nobr/a/font/div/font/td/tr/table

Real Estate Journalists Award NAREE Bivins Fellowships and ... - MarketWatch

Research and Markets: Conference Talk: The Great Nexus ... - MarketWatch

Real-Estate - Google News

RELATED ARTICLES

Home Inspectors - Negotiating a Lower Price
To help you negotiate a fair sale price for a home, it's best to get an appraisal and inspection report. Even if you agree directly with the home seller on a sale price, you may want these items to safeguard the value of your new investment.

Take A Shotgun Approach
An effective real estate advertising strategy entails a 'shotgun' approach. A shotgun approach includes online internet ads, regular print ads in major real estate publications (AJC) of the property's location, as well as popular local area publications (Creative Loafing) and full use of real estate signs.

Real Estate Investing - The Motivated Seller
How the heck do you find a "motivated seller?"The motivated seller doesn't wear a tattoo on his forehead that announces the distinction. And he never drags you onto his property begging you to buy.

How To Get Top Dollar For Your Home - Fast
1. Time is money when selling your homeAfter you've made the decision to sell your home, the longer it remains unsold on the market, the more it costs you.

Using Color Psychology to Sell Your Home
When painting your home for resale, choosing the right colors can make a huge difference in your paycheck at closing. For instance, did you know that the exterior color of houses selling most quickly is a certain shade of yellow, but that choosing the wrong shade of yellow can kill a sale?You'll find many brochures in paint stores, showing various combinations of exterior paint colors.

FSBO: For Sale By Owners Chapter One
She reached the phone on its second ring. "This is Tami!" She confidently answered.

Why Use a Property Manager?
Most experienced property investors use property managers. Why? Because they make you money.

Real Estate Bankruptcy
Although real estate bankruptcy cases no longer dominate the bankruptcy courts' dockets as they did in the early nineties, but they continue to be filed with great frequency in UK. At its essence, the real estate bankruptcy is a two party dispute between mortgagee and mortgagor.

7 Different Ways Anyone Can Become a Real Estate Investor
Being a real estate investor is not really that hard, Sometimes you do not need any money down. Other times you do not need any of your own money down.

Legal Information About the Real Estate Contract
The conclusion of final agreement between a seller and a buyer is the Agreement of Purchase and Sale. We know it as the real estate contract.

Real Estate Lease Option Danger
Why are real estate investors having so much successoffering "rent to own" homes?Lease-options offer home ownership opportunitiesto folks with little cash and not so hot credit.Oh boy, there are plenty of those around.

Staging Homes for Top-Dollar Sales
Wouldn't it be nice to have Roger Hazard's design team from "Sell This House" come visit for a weekend?Many "redecorators" and designers offer "Staging Homes" services from $250 to $5,000. These services usually give good advice, some help with the actual work involved, and others even move in new furniture for you.

Boston Real Estate - Interest Rates and Inventory Must be Analyzed when Selling Your Boston Home
When selling your Boston home, it's good practice to be aware of what similar homes in your neighborhood have recently sold for. Recent comparable sales are not only what a good Boston real estate agent should use for guidance when pricing your home, but also what a bank appraiser will use if and when your buyer applies for a mortgage to buy your home.

Build Your Retirement By Investing In Real Estate
Most people buy one or two properties. One is their primary residence and sometimes they have a vacation home.

Joint Ventures In Real Estate Development; So How Do They Work?
There are many reasons why you would consider joining with another person to undertake a development project in Joint Venture. Usually the most basis reason reveolves around something you don't have.

Real Estate Investment - Why it is Big Business?
When examining the different asset classes, real estate is generally far less volatile than shares and real estate tends to be the haven that investors flock to when other asset classes are suffering.It is true to say that investment properties can have many benefits in terms of building long-term wealth, but we must never forget that this wealth is not guaranteed!Following the global real estate boom of the late 1980's many investors learnt this hard lesson when they found their properties were worth far less than they had actually paid for them and the bottom seemingly fell out of the over-inflated market.

Whats This about a Housing Bubble?
In his recent testimony, Alan Greenspan warned against the possiblity that we have seen home prices plateau. The bursting of the "bubble" could cause a big hit to the U.

A Singles Game of Real Estate
This discussion leans toward answering questions asked most often by our youthful men and women in there early twenties. They often begin to ask themselves the question, "Should I consider buying a home, condo/town-home or some other type of real estate that I can call my own?" Due to the fact that housing has up to this point always been provided for or lived in on a rented basis we tend to find that our newest contributing members of society find themselves at a loss for the most beneficial and advantageous way to enter this next phase of self-sufficiency.

Should You Buy Real Estate Now
I have been seeing the market on fire for a long time and have started telling my friends, "don't buy now". No one can accurately determine exactly when it will happen, but it is definately on the way.

How to Get the Best Price for Your House
The best price to sell your home is always determined by how you compare against your competition, the house down the street. If your property looks better than the next guy's the customer will buy yours.