Alot of people have inquired about buying homes with NO MONEY

13 Replies

Recently I have had a bunch of people come to me asking how do they buy a property with no money down? Now I know about private money lenders and hard money lenders but I'm I missing something? Are there easier options to buy a property not using your money because it seems people are watching TV or listening to a seminar and looking for a super deal.

@Keith Odom Yes, you can also take over the seller's mortgage subject to, or buy on an installment sale, or lease with the option to buy. These work best with seller's who either don't have much equity but do have a good mortgage, or who don't need or want their money out of the property immediately. The latter is usually for tax planning or to create a passive income stream.

What these techniques usually are NOT, is a 'super deal'. They are advanced solutions for specific seller problems.

@Keith Odom

Even with wraps, sub-to's, owner financing and every other type of deal out there. No money down is a bit of a misnomer. There are still fees for attorneys, title insurance, closing costs, surveys, appraisals, etc. The deals that people need to get for no money down hard-money loans are true unicorns, the LTV has to be phenomenal and many of the syndicates are only lending 90% of cost.

Also "no money" is often mistaken for "no money out of your pocket". You can always find an investor to put up 100% of the money if you know what your doing.

The only true no money down deals are lease options and wholesaling. As mentioned if you go to a closing there will be costs but there is no cost for getting a property under contract directly with the seller to purchase or lease and the n assigning that contract to an end buyer for a fee. This is not a purchase strategy just a way to make money on a transaction to get started.


You can 100% do no money out of pocket if you owner occupy the place and get seller concessions.  I closed 4 loans last month do it.  2 where USDA loans and the other 2 where down payment assistance.

It can be done, but you need to owner occupy them

Seller financing with nothing down is hard to do these days but possible if they are motivated and you can sell yourself . Another way is take the property subject to and take over the payments

I get this all the time. EVERYONE as in (ALL) want to invest in realistate and make money. The problem is, if you are 25 or above and have no or little savings.   Your done. Sorry. You just have to be content with 9 to 5 till 65. 

Shawn Coverdell

Homes in the Hood

@Shawn Coverdell

I sincerely hope you're being sarcastic.  Everyone has a chance to invest in real estate and improve their life no matter their age.  Life happens, savings get wiped out and you have to be able to pick yourself up and start over.  Hopefully having learned lessons along the way to make your rebound easier.  Life doesn't happen in a straight line.

The only true no money down deals are lease options and wholesaling. As mentioned if you go to a closing there will be costs but there is no cost for getting a property under contract directly with the seller to purchase or lease and the n assigning that contract to an end buyer for a fee. This is not a purchase strategy just a way to make money on a transaction to get started.

Even these strategies require some upfront money like marketing, advertising, fuel (if driving for dollars), etc. You need money to invest, bottom line. 100% financing is possible, but highly unlikely for the newbie without any performance history. Gurus prey on desperate individuals looking for easy and quick riches in real estate. They make it sound glamorous and easy and tell you that using leverage in real estate is a good thing. So leverage your credit card and buy our training program! ALL BS if you ask me.

Its not easy, its not for everybody, and you MUST get educated first or you will be doomed to fail. Wholesaling is not easy either though many make it out to seem that way and it is done illegally by a lot of people so be advised on how to follow the laws regarding wholesaling. Locking up a contract, marketing that contract/property, and then assigning that contract is not legal in many states now.

 

@Tamara Deering

@Shawn Coverdell

Tamara I think you are taking Shawn too literally. I agree with him that at some point you need to bring good income, money, good credit and hustle to the game. Too many people are looking for a magic solution for entry into real estate investing. If someone works diligently at a 9-5 lives below their means saves money and protects their credit, their entry into real estate investing becomes a lot more viable the. Coming to the door with nothing and expecting to get in.

Tamara I agree with you that life has many twists and turns and anyone can start at any age but bringing a good job, money ,credit and hustle to the table is still going to be the smoothest way in.

Just my opinion.

@Keith Odom

Get rich in real estate - no money needed! The pitch most gurus use to sell their books, courses, etc.

I started by flipping mobile homes in parks. One of the first took a total investment of $8,000. It sold for $24,000. Not a fortune but look at the percentages! I’ve done the same for 20 years and retired with a nice portfolio of rental properties.

Originally posted by @Keith Odom :

Recently I have had a bunch of people come to me asking how do they buy a property with no money down? Now I know about private money lenders and hard money lenders but I'm I missing something? Are there easier options to buy a property not using your money because it seems people are watching TV or listening to a seminar and looking for a super deal.

 If they're calling you (a Realtor), then it's likely a combination of down payment assistance advertising, or late night guru get rich quick nonsense. In the former case, find a local LO that is up to speed on the down payment assistance stuff in your area. In the latter case, don't waste your time.... all that stuff everyone above is talking about, basically none of it will compensate you for your time and hand-holding.

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