If you’ve ever watched TV after about 11:30 a.m., you’ve seen people talking about courses on buying real estate without money. They show holiday paradises, beautiful girls, chic cars and huge villas. All this is promised to you if you buy their course to earn a million with nothing! If you wish, you can spend “just three payments of $99.99” to learn about this exciting area… Or… I’m just going to tell you for FREE!
However, one thing I have to mention first is that ANY information, combined with NO action, does NOT produce any result. If I come to your home and show you everything personally and answer all your questions, and then you have done NOTHING… it was a waste of time. Yours and mine!! On the other hand, if you combine information with hard work, perseverance and above all GUTS, you will be successful whether you buy the courses, read the books for free in the library or get the information from me, right here!
I mentioned GUTS because there is a price to pay for everything. If you had a million dollars, you could easily buy an apartment building. Just choose one that you liked, that had a good return on investment and passed a building inspection.
If you don’t have a million dollars, what should you do? Get ready for hard work and look for the right deal. Get ready to reject and maybe even laugh at a whole bunch of offers. Get ready to hear a pompous real estate agent tell you (as one told me): “Son, I’ve been in the real estate business for thirty years now, and let me tell you there’s no deal without money.” Get ready to work on a deal and spend time on it just to make it collapse.
You will make your deposit in the form of “Brain Sweat Equity”. You will pay by acquiring more knowledge than others in the field of creative real estate and looking long and hard to find motivated sellers who desperately want to get rid of their properties and are therefore willing to help you. Above all, you will pay by enduring the inevitable “start-up glitches” that EVERY company or company has. If it were easy, then everyone would do it, and there would be no more characteristics! It’s this difficulty that makes it EASY once you know what you’re doing!!
OK, so let’s go, but first you need to know ONE thing: IN REAL ESTATE EVERYTHING IS NEGOTIABLE!! Let me say this again, because it’s the linchpin of the way creative real estate works – in real estate, EVERYTHING is negotiable!
What does that mean? Are there limits? NO!! Can you get someone to run a contract for sale for 25 years with little or no money and no credit check? YES!! Are there ten ads in the newspaper that offer exactly such an agreement, or one? Probably none! What does that mean? EVERYTHING is negotiable! If you find a motivated seller, one who pays every month to own this property, one who doesn’t have the skills to fix it, one who has moved out of the city or country, then he COULD do it! Note that I didn’t say IT WILL, but COULD!
Think of yourself when you had a car that you wanted to get rid of because it was a piece of garbage. If someone came up to you and asked, “How much?”, you would say “$1000, fixed.” But you knew deep down that you just wanted to get rid of the headache!! And if you’ve ever had to wait a month or two without someone buying your car, suddenly you weren’t quite as fixed on the price! And if the alternator had to be replaced before the car could run, pretty soon you just wanted it OUT of your hands!! NOW you are ready to accept monthly payments, maybe hold something as security, etc. You just want it to be gone!
It’s the same with real estate! You will go from our pride and joy to an albatross around our neck – then we are ready to do EVERYTHING necessary to get rid of it!
These people won’t jump up and down and say, “I’m ready to make a no-money-down deal on my property”! You’ll be depressed, just like the guy with a clunker in his backyard who sits there for months. You will need some persuasion, aber when you find the “DON’T WANTER”, the hardest part is done! Then make deals, take a close look at each property to see if you can try it (that’s a completely different report!), if you can get the property – sometimes you don’t want it either! Then it’s just a matter of making offers, either in person or through a broker, until you find someone who
Ready for the deal. The first time is the most difficult, because no matter how many times I tell you (or the TV people) that it is possible, you will think: “Not for me, not here in ______, not any more, not with my territorial laws and zoning regulations, not with my personality, not with my brain, etc.”
Don’t believe it! Look at all the people in the TV commercials – all kinds and shapes – they have ONE thing in common – they went out and did it!
ALL IT TAKES IS COURAGE AND PERSEVERANCE!!
Here is the “stream of consciousness” of ideas on how to buy with $000.00 below, but remember all the time that IN REAL ESTATE EVERYTHING IS NEGOTIABLE!
1) The easiest way to buy without money is to get the seller to keep a purchase contract. Monthly payments for 25 years are possible if the seller does not need the money and can be persuaded to have his return of 6.7.8% secured by his house instead of buying a 4% bond.
2) If you have good credit and don’t want to put money into a property, try a first mortgage, the seller carries a big second for the rest. The seller receives, say, 75% and carries 25%.
3) Again with good credit, try first, smaller 2nd and a personal line of credit for the rest – especially if the gap is only $10-15,000. This can even work for low-cost properties where the first mortgage is combined with a PLC for the rest – be smart enough to go to another bank for PLC and tell them you’re going to make an investment with money – and don’t tell ANY bank you’re doing a no-money-down deal!
4) Payment over time sellers want $5,000 for example. How about $400 a month for a year? You’ll still pay for it, but over time – maybe the property will generate enough extra money to pay for this!
5) Pay back taxes – I have done business where I have withdrawn taxes due – you can repay them at your own pace to the extent reasonable!
6) Free rent – I made offers where the seller had office space in the building and took 2 years of free rent as a deposit! Can also work for several families.
7) After closing, there are adjustments for that monthly rent – close on the 2nd or 3rd to maximize this – and for deposits, taxes payable for the seller’s period, utility bills to be paid, etc. These can add up to a large amount!
8) Since the bank starts mortgage payments one month after completion, simply by paying an interest rate adjustment of 2 weeks, you can use the first month’s rent and apply the second month’s rent to the mortgage payment.
9) Loans for insurance, stocks, bonds, mutual funds, etc. If you allow the bank to secure the collateral, they will be very accommodating.
10) Get your Visa, Mastercard and American Expres cards. A bit crazy, but I’m assuming it’s a great investment!
11) Borrow from friends, relatives, boss (holiday pay?) Maybe you even cut them in as partners!
12) Partners are a surefire way to get accepted for large bank loans, make enough down payments, etc. Always look for people who are interested in this area and ask them what prevents them from buying investment properties. If it’s time, expertise, etc. – then you have a seizure! All that prevents you from doing so is money – and you’ve found this great property, haven’t you?
13) Syndicate a group of people – let’s say 9 investors and you get the last tenth for putting together the project – they will provide the financial strength for the loan and maybe even the down payments! Everything is possible, remember? That’s a lot of work to find these people, but VERY lucrative! Start with dentists and doctors, lawyers, everyone you deal with!
14) Rent for sale – maybe you pay for 3 years and then have built up the down payment – in the meantime, the property can increase in value, rents can rise and so on.
15) Purchase Option – Seller retains ownership and receives all proceeds. You simply pay a sum for the right (make it REALLY legal!) to buy the property at a certain sum in X years. There could be a trade for this option, such as an item or service for the option.
16) Let’s make trading an item or service for a deposit your own idea!
17) Foreclosure property – maybe just before it goes into foreclosure, you offer to maintain payments and give something to the seller, SOMETIME for their equity. (In a short time he gets nothing!) Lots of work, lots of books and announcement services available.
18) Repair damaged property – work with the bank – Example: Just as it’s worth $75,000, with tidying up and repairing worth 100,000 – Bank offers 75,000 mortgages based on future value – you need to repair – similar to welding capital.
19) Rent property (i.e. an office building) from the owner and rent it out to tenants – must be very legal and usually requires strong rental efforts!
20) Pay someone to co-sign for a loan
21) Get the broker to carry his commission as a note – they hate that, but if necessary..
22) Balloon payment – nothing down, balance due in three years
23) Private money from mortgage brokers – ask them about it! High interest rate, but..
24) Refinance real estate either before you accept it, or after
25) Find a partner where they make write-downs for a negative cash flow and you manage real estate – this can even work with the purchase of your personal residence – the investor is satisfied with a negative cash flow of $200 per month in return for your care of the property, always a tennant (you) and the investor splits the profit on the sale.
That will be enough to make some gears run in your head. The most important part is to keep trying and be creative. If you combine parts of one idea and another and are always looking for what the seller wants, you will lead to solutions. Always look for ways to make you both happy. Everyone wants all the money, right now – not everyone gets it! Think of the Junker car in the backyard and look for ways to HELP the other person – they want to sell!
Above all, keep looking! It is not a failure on your part if someone clings to the hope that he will get a certain price or certain conditions. If they can – great!! If not, check back in a few months. Many properties still sit there and with a MUCH more receptive seller after having the property “sitting in their backyard, rusting” (or causing negative cash flow and maintenance and property management headaches). Try again!
Search online for new information and more opportunities, connect with other investors, ads can be used to signal what you’re looking for, partners wanted, etc. Go to your public library for more real estate and business information. Keep your mind working and searching — keep looking for real estate and more information — an idea may be worth a fortune to you — go to seminars when they come to your city — and the sum adds up to the “Eureka!” shouted in the middle of the night.
Buying with a low deposit is obviously much easier than buying with absolutely nothing down, so save your money to make it easier for you. Even a no-cash-down deal may require cash for legal fees, closing costs, etc.
Good luck!
what should you not say when buying a car
#Money #Buy #Property
Wendy is now a financial analyst and writer. Wendy has been writing about finance and personal finance since she was a sophomore in high school. She has also been writing for several online publications and published in The Huffington Post, and Forbes Woman.
Wendy is a credentialed financial analyst and has experience working with financial institutions and businesses. Wendy is also a certified financial planner. When Wendy's not writing, she enjoys tending to her many plants, watching TV, and spending time with her family.
- The winner of the Hottest Firefighter promises: “I’ll stay dedicated to saving lives.” - December 1, 2022
- Smiling influencer caught on camera kicking a dog apologizes for sharing the ‘cruel act.’ - December 1, 2022
- What is full coverage auto insurance in Florida? - November 14, 2022
