Can I do No Money Down Deals as a New Investor?
New real estate investors have always been looking for ways to get in the business with the least money down and at the same time learn more about real estate investing.
One of the most popular questions I have been asked is if it is still possible nowadays to get in real estate with no money down, especially since financing and credit are major issues for most investors.
When I started investing in real estate back in the '80s as a college student, I did not have any money or credit, just a strong drive and will to succeed. I looked for ways to get into real estate investing where money or credit were not an issue.
My recommendations for new investors, starting with no cash or credit, are:
■Flipping/Wholesaling — Transactional funding is the best bet. 100% financing on the property, including closing costs. Some transactional funding companies will allow 30+ day funding, in order to get around the 30 day seasoning required by some lenders, especially on short sales.
■Private Funding — There are cash investors that are willing to loan funds for a return on the investment or for partnership arrangements.
■”Subject To” or “Lease Option to Buy” — The investor takes over the property, but the existing mortgage stays in place. With “Subject To” the title is transferred, while it is not with “Lease Option to Buy.”
■Self Directed IRA — IRAs can be transferred to a company, which manages self-directed IRA securities, to back up mortgage notes to purchase any type of real estate.
■Real Estate Syndication — It is a form of private funding, where the investor creates its own private funding team and he/she is the syndicator.
“Where there is a Will there is a Way” – real estate is a business with many opportunities and ways to make money as long as you are willing to think outside the box and are persistent with your goals.