BiggerPockets

I get email after email from Gurus proclaiming that you can buy any property without any of your own money. They neglect to tell you how this can be done when even a seller carry wants a down payment, there are real esate agent fees and closing costs. Does anyone know how this can be done? Frankly, I don't think it can,

It can work, but you really have to have some experience. No one will invest with you if you don't.

One legitimate way is to syndicate. Here, you find a deal and get others to invest their money for a sensible down payment and working capital. The investors split perhaps 80% of the deal by a pro-rata share of their investment. You would get the other 20% for "free" as the syndicator, property manager, and perhaps liability for the note - a not so insignificant amount of risk. I know someone locally who was doing this with modest success until the rental market turned bad. One bad deal is about to take him down.

Eugene Vollucci wrote a book on apartment investing and has (or had, I don't keep track) a local investment club where he finds deals and invests with the group. In his case however, I understand he uses "soft" money for his share. That is, he's also a broker and uses his half of the sales commission to fund his share.

Don't think you're going to walk into a bank with signed contract, no down, lousy credit, and walk out with a 100% loan. Those days are gone, though I'm not sure they ever really existed. I'd also be leery of anyone touting trusts, wraps, and merely taking over notes of the desperate. Few sellers are that crazy and there's a reason they became desperate in the first place.

Jeff