This was a long time in the process, but now that my team has done several, we have it down pat. The key is to finding and forming relationships with your key players, and the rest is just tweaking. Oh, and obviously finding great deals is part of the formula.
(I might be adding to or updating this outline as I have time or get questions)
One way to get rentals in your hands with NoMoneyDown!
1. Find a lender that will do refis without seasoning. (try the small local banks first!)
2. Find a killer FSBO deal that has not been marketed (this is important for eventual appraisal)
3. Get it under contract for 45-60 days.
4. Having found a lender to work with prior to your accepted offer, promptly request a refi on the property (should be able to find one giving at least 75-80% cash out), as it could take 45 days for paperwork, etc. Ask for what the FMV is, or higher (appraisal will determine what they‘ll give you). You will KNOW there is that much equity before you make your offer to the seller.
5. Bank will order title work and appraisal. Appraiser can complete the whole report, minus the actual name of owner. Will keep on-hold til it goes in your name.
6. Once the bank has everything it needs to set a closing date, you set the closing date with your seller (your PA should say on or before the 60-day date you had set).
7. Double-close on the property if possible, with your end refi $ from the bank covering the purchase of the property. OR, if they insist you have the title recorded in your name before handing you the refi $, cover yourself with private or hard money (which you would already have lined up) for those couple days. I have done it both ways.
Not only do you ed up with a cash-flow property with NMD, most of the time you will walk away from closing with a good chunk of $ in your pocket too!
This is working fantastic for me right now, so thought I’d pass it along. And I know there are some of you that have already done this or have found even better twists. Hope to hear from you as well!
P.S. Thank you, Dean, for teaching us to think outside the box and keep tweaking things UNTIL they work!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249