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DEALING WITH DOWN PAYMENTS

Most traditional real estate loans have pretty strict qualifying requirements these days: The borrower must have good credit history, reasonable income that’s verifiable, a low debt-to-income ratio, and a big down payment.

However, we’re not talking about traditional real estate loans; we’re talking about asset-based loans—hard and private money loans specifically for real estate investment that are based on the value of the asset (the property). So credit history isn’t a deal breaker, personal income isn’t a deal breaker, debt-to-income won’t kill the deal, and down payments aren’t quite as important—although more often ...

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