Cashbacks are a thing of a past right?
No money down is dead right?
You can probably tell from the tone of my subject title that the above questions are rhetorical questions. Of course you can buy property without using your own money AND get cashback. I’m doing it, I know others doing it and you should be doing it as well!
So if you want to go on to the standard forums where they go on about no money down being illegal etc and believe the hype, then believe the hype. The rest of us will carry on buying being that just little bit clever about it.
Take for example gifted deposits. If you tell a lender you borrowed the deposit from a money lender then some lenders will reject your application. If you tell the lender you borrowed the deposit from your Mum & Dad then no problem. Strange eh? Now suppose your Mum & Dad don’t have the deposit. That’s ok Mum & Dad can borrow it.
But lets say Mum & Dad dont want to run the risk of default. No worries. The money lender will create a 2nd charge on the property you buy and call in their debt by seizing the security on the property, never coming after Mum & Dad.
Now if you get a good enough discount on a property you can get a cashback to repay the money lender who lent you the deposit and give you cash back running in to many thousand of pounds.
There are loads of tricks like this. Exploiting failures in lender’s application forms. Don’t ask me why lenders have no problem you borrowing from a relative compared to a money lender but lenders do not ask where relatives get the money from.
So fancy learning more tricks……take a read of some of my self-help books.