Infomercials often contain only a small portion of the truth, especially when they are about No Money Down realty program. The infomercial presents the idea and program in a way that is easy for children to grasp. It makes it seem that every American should do it. If we all did it, we'd all be millionaires. It isn't something that every American does. Many of those who do it are actually getting broke. This is what the infomercial won?t tell you. That's why I'm here.
As you may already know, I was the victim of all these problems after I had acquired 26 rental properties. In fact, sometimes all of these problems happened within the same month. Now, for awhile (when I had about 10 houses), if one person failed to pay rent, I could cover it with the nine other payments. My business was devastated when multiple tenants failed to pay their rent. I had to go to my business account and pay up to $3,000 at a time in mortgage payments, with no income to cover it. I also had the expense of hiring a property management agency to get my tenants to either pay or evict me.
Now, let's get started with the truth about buying real estate with no money down and the truth about being a landlord. They are both bad ideas. Let me show you by sharing my own experience with these areas. I bought my first rental property in the last 10 years. The first property that I bought was a deal made by a real-estate con artist. He said I needed just $2,000 in order to take over the house and help out a woman about being foreclosed.
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I bought eight houses in six months. Many of them were purchased with loans from one wholesale lender. These lenders should have been worried about all of the debt that I was building but they continued approving loans based primarily on my good score and rents to cover the mortgage payments. One of the biggest problems, which I was not experienced enough to detect, was that most of the rents were just $50 to $100 above the mortgage payment.