Likewise, if I could somehow get pre-IPO shares of a company at $1 and sell it at an IPO price of $20, then I would borrow everything I can to buy those shares too. Doesn't happen often though.
Now, if you're seeing some really sweet deals that professional investors aren't touching, then you should approach with extreme caution. Just reading a book or even being a licensed real estate broker doesn't adequately prepare you. You need experience, and lots of it. If you don't even have the cash to do the deals, then I'd recommend you continue to focus on your studies and go find a mentor to work for a few years.
If you are going to live in the home you can obtain a FHA 203K loan. If this is the case I would speak with Tracy Compagna Vice President of Mortgage Lending guaranteed Rate 773-383-1405. However, if you are simply purchasing as an investment property it sounds like you will need a hard money lender.
Jessica, if the book you are reading was published between 2006-2009 you may want to check for a revised addition.
This could work and completely financed in theory of overall appraised value with a rehab or 203K FHA loan. There is currently no other way to procure financing of 100% unless to work with some type of hard money lender that would see the end result as a benefit for them.
Sohail A. Salahuddin | Group Founder
Innovative Property Consultants Group | Sales and Leasing
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