From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1521 topics, 14438 posts — Last Post 04/23/14, 03:19PM

BiggerPockets Exclusive PRO Area

118 topics, 844 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

10971 topics, 86467 posts — Last Post 04/23/14, 03:13PM

Real Estate Success Stories

398 topics, 6193 posts — Last Post 04/23/14, 03:28PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5987 topics, 47187 posts — Last Post 04/23/14, 03:25PM

Renters

649 topics, 5857 posts — Last Post 04/23/14, 02:47PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/21/14, 03:59PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

658 topics, 6316 posts — Last Post 04/23/14, 09:50AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3706 topics, 29716 posts — Last Post 04/23/14, 03:28PM

Real Estate Guru, Book & Course Reviews and Discussions

1139 topics, 11598 posts — Last Post 04/23/14, 02:31PM

Ask About A Real Estate Company

743 topics, 7344 posts — Last Post 04/22/14, 11:25PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5632 topics, 43924 posts — Last Post 04/23/14, 03:30PM

Rehabbing and House Flipping

3351 topics, 31097 posts — Last Post 04/23/14, 02:09PM

Real Estate Development & New Home Construction

554 topics, 4694 posts — Last Post 04/22/14, 09:17PM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

867 topics, 6692 posts — Last Post 04/22/14, 08:22PM

Rent to Own a.k.a. Lease Purchase, Lease Options

698 topics, 4926 posts — Last Post 04/23/14, 01:33PM

1031 Exchanges

143 topics, 1062 posts — Last Post 04/22/14, 03:21PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1691 topics, 11313 posts — Last Post 04/22/14, 09:26PM

HUD, VA, and Tax Sales

416 topics, 3103 posts — Last Post 04/23/14, 02:29PM

REOs

1217 topics, 10595 posts — Last Post 04/23/14, 09:23AM

Short Sales

1538 topics, 13139 posts — Last Post 04/22/14, 01:38PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7243 topics, 71117 posts — Last Post 04/23/14, 02:51PM

Mobile Homes & Mobile Home Park Investing

639 topics, 5144 posts — Last Post 04/23/14, 07:57AM

Investor Basics

Starting Out

7727 topics, 60654 posts — Last Post 04/23/14, 02:30PM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4727 topics, 37315 posts — Last Post 04/23/14, 02:57PM

Real Estate Investor Marketing

1738 topics, 14146 posts — Last Post 04/23/14, 03:15PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1412 topics, 9004 posts — Last Post 04/23/14, 02:19PM

Multi-Family and Apartment Investing

1123 topics, 9379 posts — Last Post 04/23/14, 02:55PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

644 topics, 4910 posts — Last Post 04/23/14, 10:40AM

Business Basics

Goals, Business Plans & Entities

832 topics, 7571 posts — Last Post 04/23/14, 09:48AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2802 topics, 20134 posts — Last Post 04/23/14, 03:16PM

Property Insurance

311 topics, 2057 posts — Last Post 04/23/14, 01:20PM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2852 topics, 19842 posts — Last Post 04/23/14, 02:44PM

Creative Real Estate Financing

1219 topics, 8850 posts — Last Post 04/23/14, 03:24PM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1217 topics, 8024 posts — Last Post 04/23/14, 08:23AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1929 posts — Last Post 04/22/14, 11:03AM

Contractors

269 topics, 1690 posts — Last Post 04/22/14, 07:33AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2014 topics, 11746 posts — Last Post 04/23/14, 03:10PM

Americans & International Real Estate

162 topics, 568 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 439 posts — Last Post 04/22/14, 09:27AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15079 topics, 54108 posts — Last Post 04/23/14, 02:57PM

Real Estate Events and Happenings

167 topics, 2591 posts — Last Post 04/23/14, 02:26PM

Off-Topic

Off Topic

Off-Topic

2907 topics, 32441 posts — Last Post 04/23/14, 11:24AM

Housing News & Real Estate Market

920 topics, 8391 posts — Last Post 04/23/14, 02:43PM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Buying & Selling Real Estate » Buying a property for $0 down or little down

Buying a property for $0 down or little down

15 posts by 7 users

Signup

Wholesaler · Orange County, California


I've been entertaining this idea recently of approaching for-sale-by-owner properties and offering ~10% more than their asking price (assuming it was a good deal from the get-go), but then offering nothing down or say 5% to eliminate the sellers risk,

Obviously I know many sellers won't be open to this or like this but I believe some would, I wanted to get your guys' feedback on this, is anyone doing this or has anyone does this? What has your experience been like / and is what is your feedback

Happy holidays~



Wholesaler · Lansdowne, Pennsylvania


Are you purchasing for all cash? Often fsbo of distressed property won't require down payments on SFR just so long as you are buying. They just want the property sold. I guess it depends on the property and terms(which are usually negotiable). If its no work needed whatsoever they are often more strict with price yet still may not require EMD...

Kudos,

Mary



Real Estate Investor · Fort Worth, Texas


@Tommy R It definitely cant hurt to make the offer. Be aware that most sellers will not entertain this unless they own the property free and clear (no mortgage) and even then only a very small percentage will agree. Just like almost everything it is a numbers game!


Small_mhbJosh Rogan, Metroplex Homebuyers LLC
E-Mail: [email protected]
Telephone: 972-809-6552
Website: http://www.metroplexhomebuyers.com


Wholesaler · Orange County, California


I mean I want to offer no money down, (and no cash), but then switching to offering 5% down to alleviate their worry

Another way of doing this I thought is that I could offer a handsome interest rate, like 8%, but in return I want only 5% down (and then for my own sale I could ensure there's no prepayment penalty just in case I want to pay it off/sell it in the future)



Commercial Real Estate Broker · Canton, Georgia


If the property is listed with a broker usually the seller would need 5 to 6% down from you just to pay the broker. If not listed there are still closing costs and attorneys fees which cost money to set these up and transfer ownership.

Personally 5% down is nothing. The seller could have to foreclose and if it goes bad lose way more than the 5% you put down.

Eventually if you search long enough someone will want to dump a dog. An old person who has paid off might entertain the idea. The new Dodd Frank act really puts a damper on things.


Small_allworldrealtyJoel Owens, All World Realty
E-Mail: [email protected]
Telephone: 678-779-2798
Website: http://www.AWcommercial.com
www.AWcommercial.com 678-779-2798 [email protected]


Wholesaler · Orange County, California


Joel- that is why I'm seeking fsbo, otherwise 5, maybe 10% even could find some interested sellers I would imagine



· West Palm Beach, Florida


What will you do with the property then? You know what the payments are for 8%, with taxes and insurance?



Wholesaler · Orange County, California


would like to catch the appreciation of the property and very ideally have it be a good enough deal that it cashflows



Wholesaler · Orange County, California


another idea I have is to offer a higher interest rate to the seller like 8% but again with little down like 5% down

Anyone else have any feedback?



Wholesaler · Baltimore, Maryland


Yes this has been done many times before. However finding that deal is the hard part. Like @Josh Rogan said it is a numbers game. It will take lots of leads to get this kind of deal. It is also up to your negotiating ability.

Also make sure you know your numbers. Just because you can get into a deal for little or no money doesn't mean it is a good deal. As @Wayne Brooks (the smartest man on BP without a profile photo) hints at, there are a lot of hidden costs in real estate. Good luck - Ned


Small_crab1_copyNed Carey, Crab Properties LLC
Website: http://baltimorerealestateinvestingblog.com/
http://baltimorerealestateinvestingblog.com/


· West Palm Beach, Florida


Thanks Ned (and Dion and some others may disagree), but I can't find any 20 old pics though. Tommy, also if the FSBO was a "good deal from the get go", it wouldn't still be for sale.



Real Estate Investor · Central Valley, California


Originally posted by Joel Owens:

Eventually if you search long enough someone will want to dump a dog. An old person who has paid off might entertain the idea. The new Dodd Frank act really puts a damper on things.

Joel: how does Dodd Frank (new or old) put a damper on things? The OP is an investor and would be buying for a business purpose. As far as I know those deals don't fall under Dodd Frank.



Real Estate Investor · Central Valley, California


Originally posted by Wayne Brooks:
Thanks Ned (and Dion and some others may disagree), but I can't find any 20 old pics though. Tommy, also if the FSBO was a "good deal from the get go", it wouldn't still be for sale.

Wayne: I suggest getting creative with your profile pic. Use blurry age 50 photos (like me!).



Wholesaler · Orange County, California


Originally posted by Wayne Brooks:
Thanks Ned (and Dion and some others may disagree), but I can't find any 20 old pics though. Tommy, also if the FSBO was a "good deal from the get go", it wouldn't still be for sale.

This just sounds silly, just because it made it to the MLS does not mean its not a good deal.

It may not be a KILLER deal, but that doesn't mean its not a good deal.

ie: I bought a property 4 years ago for 5k down, a 100k property, now its worth 150k+

And even just 2 years ago it was still worth about 100k, its only the past 2 years it went up in value.

I bought the property off the MLS.

I would consider this deal just fine. It's not a killer deal, but low and behold I made a relative sweet return on my capital. (nearly 100% a year over the past 4 years in appreciation).



Wholesaler · Orange County, California


oh and it is cashflowing $200 a month for me as well steadily





Sign up