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stevo137
02-26-2006, 01:35 PM
Has anyone here actually purchased a house or property using Sheets no money down course?
I bought the course about 4 years ago, looked at quite a few properties but never pulled the trigger and would like to talk to someone that actually has done it.
There is a nice house at the lake with lake rights that I'm interested in and was wondering if this really works or is it the typical "only a few" really do it deals.
Thanks in advance.

Danimal
02-26-2006, 01:44 PM
I've never used Sheets system but I bought my old house with no money down. I borrowed the 20% down payment with a 5 year baloon and re-fi'd a year later to pay it off at a lower interest rate.

Andyg
02-26-2006, 02:04 PM
My first house I bought 5 years ago I bought with no money down. I had a line of credit (also known as a home equity loan) to pay for the 20% downpayment. It came from the same lending institution that did the primary loan. About a year later I had enough equity and cash to refi with 20% equity. You usually pay a higher interest rate using this process, but you do not pay PMI. If you were to put 5% down and get a loan you would be paying PMI until you could refi with 20% equity.

Last year I bought a cabin with 5% down and paid the PMI for about 6 months. The property we bought appraised at $20,000 more than we paid for it so we refinanced after six months so we had 20% equity. Now we have a mortgage with no PMI.

The big thing is finding the right property and to see what is happening with property values in your area. In our house situtation we bought a fixer up so that after a year we had redone the entire house and had a significantly higher appraisal than we did the year before. It also helps to have a best friend that is a mortgage broker and an uncle that owns his own appraisal buisness. He didn't fudge the appraisal, but he didn't charge me for it. I also didn't pay much in closing fees, because my friend the mortgage broke waived most of them.

stevo137
02-26-2006, 03:12 PM
Thanks guys, good info.
This is a 3 bedroom ranch with lake rights and just a walk from the lake and my brother in laws place where I keep my lift so I can keep an eye on it since I'm there all the time anyway.
The subdivision also allows people to have their own lift even though their house is not right on the lake and there is a pier that they put in every year. It's a nice deal for homeowners that are not on the lake.
The area is rapidly increasing in value and I can easily rent this place but need to crunch the numbers to see if the rent will pay the monthly.

Danimal
02-26-2006, 03:21 PM
Andy... good point about the PMI. I didn't have to pay PMI either. It's easy these days to get a re-fi loan. Any mortgage broker worth his salt will find some comps in your area that will allow you to re-fi and get rid of the 20% borrowed for the down payment.

Workin' 4 Toys
02-26-2006, 04:16 PM
Steve,

I know three people that bought into that too. None of them ever did anything with it.
I have a suggestion. Talk to alot of people that have done real estate transactions, take notes. Take those notes, and put them on video.
Sell the videos on an info-mmercial for alot of money.....

Probably more money in video sales than real estate....;)

Sorry, those "get rich quick" info-mmercials just strike me as humorous.

stevo137
02-26-2006, 04:28 PM
Steve,

I know three people that bought into that too. None of them ever did anything with it.
I have a suggestion. Talk to alot of people that have done real estate transactions, take notes. Take those notes, and put them on video.
Sell the videos on an info-mmercial for alot of money.....

Probably more money in video sales than real estate....;)

Sorry, those "get rich quick" info-mmercials just strike me as humorous.
I hear ya'. This guy has been around for 20 years and it makes you wonder.

flipper
02-26-2006, 04:42 PM
I don't know how the coarse says how to do it, but I just bought my house with no money down. I doubt they tell you anything any loan broker wouldn't tell you. The other thing I found is that you can go anywhere, pick there brain, and once you get all the info that you need or want as far as the loan goes, start finding the best deal. Watch out for the bait and switch though. Shopping around pays, I will say that.

flipper
02-26-2006, 04:46 PM
Andy... good point about the PMI. I didn't have to pay PMI either. It's easy these days to get a re-fi loan. Any mortgage broker worth his salt will find some comps in your area that will allow you to re-fi and get rid of the 20% borrowed for the down payment.

You get out of the PMI by getting an 80/20 loan. 80% first and 20% second. You more or less borrow a down, with a little higher interest, refi. a couple years later when the house is worth 20% more. Ends up being cheaper than PMI.