Buying Investment Property Without Credit Check
Low down payment, no credit check and guaranteed approval. This is a convenience for many investment property buyers who prefer to shop online. The internet, which has dramatically changed the way people do business, has also revolutionized investment property shopping.
A traditional loan for investment properties requires an application, credit review and full disclosure of the applicant’s financial situation. However, a growing number of real estate developers, owners and brokers are offering investment properties with the ease of owner financing. A low down payment followed by regular monthly payments can ensure ownership of the best piece of investment property. Most commonly used for land purchases, owner financing is extremely popular for investors, first-time homebuilders with no credit, and even people who have had credit problems in the past and would not otherwise qualify for a conventional loan.
With very low down payments, often less than $1,000.00, many investment property sellers provide competitive interest rates and low monthly payments with absolutely no qualification, credit check or income verification. Consumers will be approved as long as they continue to make their required minimum monthly payments.
No matter when, where and how the investment property is purchased, the buyer must perform due diligence before signing on the dotted line. The buyer will want to be sure to obtain a warranty deed for any investment property, which means that the property will be free and clear of any liens and that the current owner has the right to sell the property. In addition, it may be a good idea for the potential buyer to contact the local tax office and inquire about the latest assessment of the investment property. This will give the buyer a good idea if he or she is getting a bargain. If the investment property is located in another state, the buyer should request photos and even consider hiring a video expert to make a recording of the immediate area and terrain for visual purposes.
When agreeing to purchase the investment property with owner financing, a signed contract is a must. This is simply a contract drawn up and signed by both parties, showing the required down payment, the exact purchase price, monthly payments, the number of payments required until payoff, a list of prepayment penalties (if any), the location and size of the investment property, and details.
A valid investment property contract will confirm that the seller agrees to finance the property with a certain amount of interest and will sell the identified property after a predetermined number of payments. In return, the buyer agrees to pay a certain amount on a certain day each month. The contract must specify the exact location, street address, size of the plot and parcel number. It should also include terms for late or missed payments, late fees and cancellation options (if any). The contract must be signed and dated by both parties to be valid.
