I keep hearing on all of the podcasts that I listen too about how investors got started with no money down. Which is extremely impressive to me and I would love to talk to someone who on here that was able to pull it off. If you are in Philly let's grab coffee, if you are not I can send you a Starbucks gift card for your time LOL.
Step 1: Be in the year 2006.
Hey @Angelo Goodwin there are many strategies that include using the money of others. many times when a trainer/guru refer to "no money down" they are referring to the art of wholesaling or seller financing(owner carries a note) or using private money(money from someone who is willing to invest in your deal) or doing a J/V(joint venture) where you find the deal, they fund it, you refinance it, then pay them off. In all "no money" options it takes a great deal of creativity, time and patience. Good Luck on your journey!
It is possible but you have to find the right deal. Don't expect no money down on every deal you find or even the first deal. If you're only willing to do no money down deals then you'll be passing on a lot of good deals.
@Michael Le I totally understand that, I just wanted to hear from someone who was able to find and capitalize on it.
@Angelo Goodwin , I have done it. I was able to get the seller to carry the majority of it and then got a private lender to provide money for the down payment. If you have any specific questions I can answer, I'll be happy to.
@Angelo Goodwin , I kind of did it this year. I bought a 4plex and the owners financed the down payment by carrying a second mortgage for the amount of the down payment. Having a good relationship with the bank I used helped, and they were motivated sellers who I had helped out in the past. They carried 20% as a second, I used a 15 year loan, so in 5 years I would be able to refinance and pay them off in full. The sellers got the 20% down at 4% interest with interest only payments monthly, and a 5 year balloon. Does this help?
At the beginning of the year I talked with a lady who lived in her house for about 40 years. Husband died about 5 years ago. She was ready to move on and leave the constant reminders behind. She gave me the price that she wanted and told me everything that was wrong with the house. I told her I could do that price, but she would have to finance for 15 years. I had already talked with her for over an hour and I knew what her financial situation was. She had a SS and a military pension. She was doing ok and did not need the cash from the house.
I did let her know that I would either rent or sell the house very shortly. Either way, she would get her money for the term of the contract, maybe sooner. Within a couple of weeks I found a buyer for the house at a price higher and an interest rate higher than I was paying the lady. We went to the same title company that I closed at and we did a wrap mortgage. Everybody was explained everything and the buyers knew that there was an underlying mortgage on the house already.
It was not completely no money down. I paid about $1500 to close the first time, but then in about 1 month I received about $6,000 at the second closing from the down payment. The house has about $300 cash flow for the 15 years of the mortgage. After I pay off the loan, I will have another 10 years of about $615 of cash flow because my buyers have a 25 year loan.
I have a bunch more that were wholesale deals and a few where I partnered with friends or family that were really no money down.
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