The Other Side of No Money Down.

[Robert Jordan]

I've been studying Real Estate since 1998.  I had my first license in PA then, working through Weikert Realtors.  We were remodeling Multi Units on Drexel University Campus.  I started listening to the Sheets tapes.  I thought No Money was the ticket, since all my funds were tied in student loan repayment.   I have since been awakened to the fact that, 

1.  If you are just starting out, no one will partner with you or trust you with their money.

2.  If you want a seller to finance any part of the deal, you will need a good sized DP, if the property is even worth purchasing.  Many times, after the repair, depending on the area a profit is nullified.

3.  Most realtors don't want to talk unless you are pre-qualified.

4. People say find a good deal and the money is easy.  I think with the money, you can generally make the deal.  

This is coming from a guy still trying to break the ice and get into the game.

Any thoughts.?

[Nathan Gesner]

Quote from @Robert Jordan:

I've been studying Real Estate since 1998.  I had my first license in PA then, working through Weikert Realtors.  We were remodeling Multi Units on Drexel University Campus.  I started listening to the Sheets tapes.  I thought No Money was the ticket, since all my funds were tied in student loan repayment.   I have since been awakened to the fact that, 

1.  If you are just starting out, no one will partner with you or trust you with their money.

2.  If you want a seller to finance any part of the deal, you will need a good sized DP, if the property is even worth purchasing.  Many times, after the repair, depending on the area a profit is nullified.

3.  Most realtors don't want to talk unless you are pre-qualified.

4. People say find a good deal and the money is easy.  I think with the money, you can generally make the deal.  

This is coming from a guy still trying to break the ice and get into the game.

Any thoughts.?

The term 'low or no money down" is designed to attract attention but it's not very realistic or wise. It's pushed by get rich quick gurus, but even people on bigger pockets that have been wildly successful.

Can it work? Yes! Go listen to podcast number 553 for a good example of someone that started with no money and turned it into a successful business. However, his story is the exception, not the rule. Go listen to stories of Kobe Bryant and how hard he had to work to become on NBA player. It's a very inspiring story, but it would be foolish to think that I could have the same success in the NBA being only 5'10" and no natural athletic abilities.

Long story short, my experience shows that the vast majority of successful investors were financially wise, they worked hard, they saved up, and they invested their money in real estate as able. Low and no money down investing is probably no more successful than buying real estate with credit cards.