Situation no money down

[Elizaveta Voloboeva]

Hello everybody!

I've just read a great book on negotiation and there was a very interesting example of how to buy a property with no money down.
Here is a short view of what the author proposes:

For example SFH price is 100K:
You could take 80K from the bank and offer to seller 20K with small interest for lets say 5-8 years

I don't think I saw this strategy on Biggerpockets so I'd like to know your opinion.

Thank you!

[Kevin Yeats]

Most lenders want to see the borrower have some "skin in the game" .. that is some of their own money so if something goes bad, the borrower won't just walk away.

Most sellers or anyone else holding a second mortgage on this property will probably want something more than small interest. After all, if that something goes wrong, that lender is in second position and may lose everything.

But approach a banker with your idea and see what the banker says.

WARNING: develop a thick skin first.