No Down Payment Real Estate Program in Lenders Helping Homeowners to Avoid Foreclosure
Have you ever been up late at night?
If you have, then more than likely you have seen Carlton Sheets and his famous commercial for his No Down Payment Real Estate Program. For years his TV commercials have been airing all throughout the U.S. making the promise that you can buy real estate with no money down. The commercial also shows many of Carlton students who have found success using his program.
All of them start with stories of being broke or running low on luck or faith. Then they see the Carlton Sheets program and decide to make a purchase. A few months later most of them are damn near millionaires. Many investors claim they got their start with his program. Many claims that it works and many claim that it doesn’t. So what is the real answer behind his No Down Payment Course? Does it work or is it a flop?
The answer to that question is quite easy. It is entirely based upon you and your actions. Before I cover this point let me say a few things. The No Down Payment Course was one of the first courses I ever read on real estate. It is actually the first course on real estate I ever read. I saw the commercial once while on vacation and said to myself. Real estate is what I was meant to do. I never could understand where the feeling came from.
I just knew after I saw his commercial that day, which I had seen thousands of times before that I was meant to become a real estate investor. So I asked my father if he wanted to become partners if I ordered the course. Well, it turns out he ordered the course a few months before and tried his hand at real estate. He was not able to make the No Down payment program work for himself. He tried for a few months and after no success, he just placed the course in the closet.
I was surfing the Internet this morning as I usually do when I ran across an interesting article located on the MSNBC website. After reading the article it inspired me to write this post. As many people have been hearing on the news lately there has been a lot of talk on the rising foreclosures and sub-prime loans.
Many lenders are coming under fire for providing these loans to credit-challenged buyers. Many groups are claiming that Lenders have been irresponsible in providing these loans. I read this article and thought to myself could this be the beginning of change within this industry or is it just another method of damage control by certain lenders.
We rarely hear about lenders that actually try to help people avoid foreclosures. There are some lenders that do provide the borrower with help in avoiding foreclosure. Still many of the lenders just sit back and watch it happen. If you take the time to think about this action, it just doesn’t make much sense.
Lenders make money off of the spread between the interest rates. They basically borrow money from the government at let’s say 3% and loan it out at let’s say 6%. Without getting too technical this is how the lenders and banks make their money.