Where can I learn how to get buy properties with zero down in CA?

10 Replies

I have been wasting a lot of time trying to learn how to buy properties with zero down.  I understand the concept but I need some in-depth training.  Who would be the best person to learn from in your opinion?

Well, you have identified the problem so why are you not doing something about it? If I decided I was going to only buy a house with no money down, more than 10 years in this game and I would have completed less than 5 deals. Maybe it is time to think about approaching this business from another direction?

Are you saying it's almost impossible to buy houses w/ zero down?  

Borrow money from your family or friends.

Joe Gore

What about buying using a lease option or subject to?

What does no money down mean, and why is it a goal?  I'd rather buy a $100K house for $40K with $10K down, than buy it for $100K, no money down.  You can find the entire $40K when you have more than 50% equity.  Buying with equity makes a lot more things possible. 

What is it you are trying to do?  

Originally posted by @James Lee:

What about buying using a lease option or subject to?

I buy sub2 but I wouldn't call it "no money down". Even if I get the deed for free, there have always been other costs in taking over the property. Reinstating the loan, HOA liens, tax liens. The last sub2 I did there were $10K in cash costs to take over a $20K loan for a property I sold for $72K two months later. I wasn't looking for no money down. I was looking for a way to solve all the seller's problems and hopefully not have to pay the loan balance in full until I resold. But, say the lender would allow me to reinstate the loan.....even if I had to pay the loan in full and didn't have my own funds, it's not hard to find money to buy at 50 cents on the dollar.

Originally posted by @James Lee:

Are you saying it's almost impossible to buy houses w/ zero down?  

 No, I've actually made money at the close of escrow when I've purchased a house. What I'm saying is your goal is kind of like "I want to win the NYC marathon" but you'd have a lot more success competing in the local 5K races every single weekend. 

We don't know what your motive is. Are you active and just want to go through a no money down deal? Or on the other end of the spectrum, are you so broke you are using the free internet at the library and have this false belief that getting a no money down deal really involves no money? (It doesn't.)

There's no such thing as a free dog, and there's definitely no such thing as a free house.

I just saw a no money down deal with an interesting structure last week. Married couple with no down payment and plenty of cash self-employment income want to buy an REO for $350K in So Cal. $350K is a great price and buying at that price means there is equity.

The couple has poor credit due to a business BK.  They find a partner to buy the property in his name, non-owner occupied.  The partner puts 70K down and has great credit so the loan has very favorable terms.  After the purchase, the partner adds the couple to the deed.  2 months later, the partner finds a local private party lender to cash out his $70K down and loan in 2nd position.  So the couple is now in with no money down, making affordable payments on the 1st and 2nd.  The partner recovered his downpayment and is secured by being equal owners with the couple. I have no way of knowing what the eventual equity split or additional incentive to the partner is.

So this is a just one "no money down" scenario.  But more importantly, it was a buy right scenario. 

You don't have to "buy" to make money.

1. You can do a lease option assignment, find a seller that has a pretty house with little equity and flip the contract.

2. Get an option and sell the option.

3. Do a "light rehab" but offer a "JV agreement with the seller", get private lenders to give you $10K to $20K to do a light rehab, place a lien against the property for the private loan, plus interest, plus your jv fee, supervide the rehab, list the house at the same time as you do the jv paperwork, agree up front the you will list the house at .95 x average comps, get a spoa (special power of attorney) so the seller does not sabotage the deal. Think about going to probate attorneys to update "grandma houses", heirs just want their money and dont want to do light rehabs.

@J Scott, 

@Rick H.

What do you think?

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Because the OP is focusing on "cheap" instead of value, he's missing the point. 

I've been working foreclosure deals for close to 40 years and "cheap" or even skinny deals do not appeal to me. 

The money is made because of your knowledge in solving a problem that someone else has. They either cannot, will not or are uninteresting in solving it themselves...but they do want it solved! That's where the motivation part comes in. That's what catalysts (triggers) are all about.

I realized some years ago that I was in the liquidity business however I'm really primarily in the problem solving business. The liquidity is just what brings people to me. My job is, in part, helping people make difficult decisions about problems that they can't seem to make with the help of others who both understand the solution as well as how to communicate the benefits of swallowing what may be a bitter pill or nasty-tasting medicine.

Your challenge is to learn to spot opportunities to solve problems and carve out a profit for your execution. That's where your education is essential.

Will you be on our Hunting Club call today?  This is my last post today; gotta get ready.

El cheap-o translates into empty, not bigger, pockets.