Putting no money down

[Justin Lee Taylor]

What are some good ways to get a house no money down other than living in it?

[Adam Petterson]

@Justin Lee Taylor no money down can happen, but there is definitely some risk involved. With that being said...

brrrr strategy could work

1. Buy - buy the property with hard money in an LLC. Some hard money lenders can finance 100% of the purchase and rehab if you find a good deal

2. Rehab the property and force appreciation.

3. Rent - find renters for the property

4. Refinance - start the refinance when the rehab is almost complete. Once the rehab is done you can get the property appraised. If you have done the deal right you can refinance all the money the hard money lender loaned you

5. Repeat

Example

Purchase property at $100k and put $50k into rehab. The hard money I've used required 70% LTV on the finished product. If that the case you would need the after repair value to be at least $215k ($150 / .7 = $215k). If appraisal comes in or at $215k you can finance 75% of this value (which will help you cover loan fees, taxes, etc)

Don’t forget about holding costs as well - these can eat up all profits/chances at refinancing without needing to bring money to the table