Can I invest in property with only 10 to 15k?

Question

For example, if there were a 100-150 thousand dollar property for sale, would I be able to buy it, if I can only get a $15,000 loan. I mean, is it possible to make a deposit on the property and would it have to be a property that generates income from rent? The situation is that I earn only $39k a year but I want to invest in land/property. Can you advise me? Thanks!

Answer 1

Ummmm...no, you could not buy a $100K property with only a $15,000 loan, unless you are giving the seller the balance of $85,000 in cash.  

On the other hand, yes, you could buy a $100K property by putting only $15,000 down.  However, be aware that when you get the loan for $85,000, you can expect to pay at least another $5,000 to $10,000 in closing costs.  That is where the banks and mortgage companies get you...all these fees, especially title insurance.  

I would suggest that you find a partner to invest with if you really want to invest in real estate.  Start small, take your time finding a potential winner, and go from there!

Answer 2

you may be able to, but cause of the credit crunch it may be a bit harder. you should talk to a bank about what fees you may pay. you may have to pay a  fee for not having a 20% deposit for example. and shop around. go into the Banks as if you were going for the loan, get them to give you the details and then say that you are going to compare it and do your homework on it.

A mortgage broker may be able to help you as well, lots of loans under one roof. BUT make sure that you get a lawyer to check the contract and who owns the mortgage. An example was a person approached a couple and said that there house was going to be sold, the couple said "but I have been making payments on time" but it was the company that was in receivership and they lost their house.

Do your homework, don't rush in, and play it safe.

Goodluck

jake  

Answer 3

i don't have experience with property and i think that 15K with property is not enough maybe , but i have experience in asset management , with 100k usd invested , their minimum now is 15K usd , profit 3% to 10% mothly, so far so good , i 'm happy with it , take a look if you are interested.