Best way to finance a bid!!

[Harry]

Newbie Here!!    I found that message that eluded me, on Properties For Sale from"Gap". It was from July 2006. OOPS!  Do "any" lakefront areas up to two hours from Brampton exist, with reasonable taxes in which I may contact for future propertie sales info. Also, If I really like a property at a tax sale that is more than my $4000, is it possible to have financing pre-approved and ready, to quickly cover the difference. I am only looking at $20,000 max. ( mortgage, line of credit, personal loan, etc.).  I would really like to get my feet wet, but the smart way. Thanks!!  Have an excellent day!!         

[Pfm1011]

I would suggest that if you have to finance...you shouldnt play. I know it sounds great to buy acreage for 4k but reality is that even if you got a deal you have soft costs..legals etc . If you are in the 4 to 20 market  and did get a deal no bank will touch the property, That low a price is really just a small car loan , noone will write a mortgae that small.

[ratster]

My best advice is that you should only play this game with money you can afford to lose......

[Rob]

The best way for the first property is from family and friends or personal savings.  Then you can borrow against the first property to secure the second.. third.. etc.

[cokotlc]

You could possibly get preapproved for an unsecured personal line of credit.  You only pay interest on the balance owing.  So you can have your financing in place before purchasing and would have access to it when needed.  What others have said previously in this post is correct though; the best to purchase is without financing.  Keep in mind a personal line of credit for most first time borrowers is typically only around $10,000 so you won't have a lot of purchasing power.

[Pfm1011]

Again ..If you have to borrow..I wouldnt play this game ..