Renter · Phoenix, AZ · Member since 2010 · 6 posts · 2 votes
Has any one stated their first deal with no money? If so what strategy did you use?
I am starting out and i'm thinking of just calling arond here in Phoenix Arizona and or driving around to talk to some MHP owners and try and work something out with them to get my first deal. I have learned alot just by reading post and watching videos but need an experts opinion.
1) ask for seller financing
2) Master lease option
3) Private money (not hard money)
4) Partnership
5) Get the first from bank/lenders and second from seller...
Hey Venkat,
I heard a lot about private money lenders but I was not sure how to excute the approach. I am currently looking into going to a REI club meetings. I heard that that is a great place to start.
I will assume you are talking about a mobile home located within a mobile home park and NOT mobile homes attached to private land. A true "NO money needed" purchase only happens in my experience 1 out of every 10 deals. Most sales require at least $500.
Venkat hit it on the head with "seller financing", except I would not say to "ask" the seller for seller financing as most sellers will always prefer all cash and deny you right away.
I have spent the last 10 years convincing sellers that the options I have for them are the best solution to their problem... how do I do this? Because the solutions I have for them SOLVE their problems and are executable immediately.
Some notes on Venkat's advice:
Master lease = Ehh. Maybe for homes on private land. Just get the deed instead.
Private money = Most investors will not lend you money without a proven track record of success in this field.
Partnership = Try partnering with the sellers themselves.
Get the first from bank/lenders and second from seller = Unless you really, really, really want this deal then go to a bank to sign personally for a loan.
I have decided to just give it more time and save some money. I think that 2k would be a good start. Thanks for the advice and congrats on the success John.
With $500 you can get one under contract and then find a buyer! You need to make sure you are getting a great price so that there will be some profit in the deal when you sell it.