Stupid Question?,

17 Replies

How true is no money down?,  what programs are there for those buying first time but using the property as an investment?. This year I would like with my partner acquire a disstressed fourplex?.  Currently doing what ever I can to earn and learn more as well as get our hands dirty, come hell or high water not closing 2015 with out a profitable property. 

Hey @Abou C.  not a stupid question at all - this is probably the number one question I get asked and I'm happy to share my thoughts, for what they are worth. 

First, "no money" is very very difficult but "low money" is much easier. For example, there are very few "$0" loans (the VA and USDA are two, but tough to get) but there are several loan products like the FHA Loan and the 203(k) loan which require just 3.5% down payment, but you have to live in the property for the first year. (More on that here)

Then there are strategies like partnerships, lease options, etc to get a deal done without a lot of out of pocket. But nothing is super easy - but it can be done! 

Oh -and BiggerPockets recently published my book on this stuff if you are interested in checking it out! It's called "The Book on Investing in Real Estate with No (and Low) Money Down." 

@brandon yes I will order tomorrow morning! for my business partner and I. Also we would not mind living in one of the units for the year as well. 

Question to Brandon or anyone else, who would kindly answer:

1. Tools used to analyze a deal?, applying the cashflow book this week as well.

2. What protective measures for a investment property, besides separate llc from parent?.

3. As a way to get into real estate via rental agent ( taking sales license test next month), what other ways to get involved in real estate and make money for more investments. 

4. Links for lease options?

5. For partnerships and for two newbies, we are currently reading all real estate books on multifamily and investing as well as taking our sales license next month to learn and earn. How do we partner up with a local investor with little to no money?. How do we better position ourselves to meet someone like that either to partner or learn from them?. 

Lol @Jerry Poon  

@Abou C.  :

1. Tools used to analyze a deal?, applying the cashflow book this week as well.

Check out http://www.biggerpockets.com/analyze

2. What protective measures for a investment property, besides separate llc from parent?.

I wouldn't worry too much about this yet. Too many people worry too much about this. But ask a lawyer and CPA as soon as you can ;)

3. As a way to get into real estate via rental agent ( taking sales license test next month), what other ways to get involved in real estate and make money for more investments.

Check out this 

4. Links for lease options?

Check out my book and this article

5. For partnerships and for two newbies, we are currently reading all real estate books on multifamily and investing as well as taking our sales license next month to learn and earn. How do we partner up with a local investor with little to no money?. How do we better position ourselves to meet someone like that either to partner or learn from them?. 

Try this post 

Hope that helps!

@Brandon Turner  

@Abou C.  

Navy Federal has two 100% financing conventional loan products as well. I've helped numerous buyers purchase homes with NO MONEY! Both loans are for your primary residence.

1. Home Buyer Choice Loan- Zero Down Payment, 30yr Conventional Loan, No PMI.

2. 5/5 ARM- Zero Down Payment, 30yr Conventional Loan, No PMI, The interest rate on this loan can adjust only after the first 5 years for a maximum of 2%. Then cannot adjust again for another 5 years for a max of 2% and so on... The great thing is that it can only increase a maximum of 5% over the life of the loan!!

With both of these loans, the lender pays up to $1,500 of the borrowers closing costs and they are available for purchases up to 1 million dollars. Also there are no pre-payment penalties. So if you can get the seller to contribute a little to your closing costs as well...BAM! No money out of pocket.

I just bought my new home with the 5/5 ARM at 3.875%.

@Abou C.  , I've purchased three buildings with no(ne of my own) money down.  I had some friends that were tired of getting 0.01% in the bank and I offered to borrow the money at 5%.  They were stoked and so was I.


Def. talk with an attorney about your legal situation.  Insurance is always a good option (umbrella policy).

You are are the BEST!., I am researching FHA more and see what options my business partner and I have.

Originally posted by @Brandon Turner :

Hey @Cliff Zarbock  - that's great to hear! Is that for Military only? Or anyone? (I don't know anything about Navy Federal)

You can make a $25 donation to certain charities/organizations and become a member at Navy Federal... so no, it's not just military.

They will also (apparently) do cash out refi's/HELOCs as a second position on NOO properties... honestly a bit surprised more investors aren't using them... must be some downside I haven't heard about yet.

@Cliff Zarbock  

I had not heard about Navy Fed's products. Is that only for your first loan? We are buying a personal property in May but it will be our 7th property. Can we qualify for the first product?

@Elizabeth Colegrove @Brandon Turner  @Nathan Emmert  

I have heard about Navy Federal. I have not used their services yet because I have taken advantage of the VA Loan (twice) and other financing before I go to them for their 100% options. As I exhaust my financing options, I plan to use Navy Federal for my next home purchase. I do recall, but have not vetted, the owner occupy requirement for the 100% options they offer.

@Brandon Turner  

In order to open an account with Navy Federal one must qualify. The qualifications are as follows:

1. Be an active service member or in the D.O.D.

2. Have a family member that has an account open.

3. Have a family member that has retired from the service or D.O.D.

The $25 dollar donation that @Nathan Emmert mentioned does not apply for Navy Federal but does apply to Pentagon Credit Union. Which does have low down payment loans without PMI but not any 0 down payment loan options.

@Elizabeth Colegrove 

So long as your buying the property as your primary residence and you don't have more than 4 other properties with mortgages then yes, you can use this product. (BTW- I really enjoyed listening to your podcast!)

-Cliff Zarbock

@Brandon Turner  

@Nathan Emmert  

So I just got word from the Higher Ups at Navy Federal that if you join the "Navy League of San Diego", you will qualify for a Navy Federal membership. Anyone can join by paying the dues for one year. If you're in college, the dues are $25, if not they're $65. So with this, anyone can take advantage of the 100% financing conventional loan products at Navy Federal!

Here's a link to the Navy League:

http://www.navyleague-sd.com/index.php?i=Membership

-Cliff Z. 

I'll echo what @Cliff Zarbock said about Navy Federal C.U. I've been a member for years and my daughter just joined so she and her husband could buy their first home. They closed on it two weeks ago and after getting a seller concession toward their closing costs it cost them $200.00 out of pocket to buy their home. Great program for sure.

@cliff 

@Cliff Zarbock - thanks for the info on NFCU! I actually learned about it this week, and next week opening up an account to take advantage for their first time home buyer options. My father served and will be opening an account as well.

Do you happen to know if there are restrictions to using either of their 2 financing options for a multifamily? 

Thanks!

Join the Largest Real Estate Investing Community

Basic membership is free, forever.