We us "Creative Financing" in it's various creative techniques for dcades and have learned a few things along the way that may make it easier and less risky if you are trying to use them yourself.

1) First, there is no such thing as "zero down". It can be "little" down or "someone else's money down" but don't make the mistake of thinking you don't have to have some skin in the game. I allocate $25,000 per property and rarely exceed that. Compare that to having to put 20% down on a house using bank financing which on a $200,000 property is about $40,000 plus closing costs and carrying costs. We're "all in" at $25,000 and we get most, if not all, of that back from the Tenant Buyer we sell to. We generally cash flow my properties, some people rehab, some "buy & hold" - all using Creative Financing.

2) Order a Title Report on every property - it is insane not to and they generally run $50 to $60. I didn't say Title Insurance, I said Title Report.

3) Use Escrow to close. Table closings are a thing of the past. The risk is not worth it. Escrow can run to $1,500 or so, but a lawsuit can run $25,000 to $150,000. 

4) Have reserves. You need to have cash on hand or access to enough to cover the underlying mortgage, utilities, HOA and various carrying costs in the event the house goes vacant for a few months. You affect the credit of the person who's property you are taking with "Creative Fnancing. If you start missing payments and messing up their credit they can sue you. Oh yeah, they didn't mention that on the late night TV ad or the "Two Hour" real estate investor seminar you went to, did they? It's a serious business and you have to take it seriously.

5) Decide your exit strategy before you buy the property.

6) Record the Deed. What about Due on Sale?  It is possible that the deed could be called. But I've done more of these than I can remember and I've not had a single one called. Don't try to hide ownership in a Land Trust. If it looks suspicious, they will dig deeper when they sue you. There is a proper way to do this step and most people won't take the time to learn or somehow think they are immune to it. 

7) Know your options in the event that the Deed does in fact get called. There are several options, many of which put money in your pocket.

It's profitable an dyou get past the hight interest rate problem, but you have to understand the proces to stay safe and secure,