No money down real estate buying techniques are being used by a lot of savvy real estate investors to make quick profits without investing much of their own money. Lease options, flipping, and lease purchase have made it possible to buy a home with no money down. 

Buying Homes For No Money Down
Lease Options: Lease option is a technique where people rent-to-own properties. The tenant and the landlord have an agreement where the tenant has an option to buy the property at a predetermined rate. The most common type of lease agreement in lease option is an NNN. A part or sometimes all of the rent is credited to the purchase price apart from a non-refundable option fee. This is just an option with no binding obligations to buy the property; however, the tenant will lose the non-refundable option money. This method is another creative technique enabling no money down home buying. However, choose properties wisely. Exercising a lease option on a property whose owner is in a bad debt situation is not wise, as the property may be foreclosed before you exercise your option to buy it. To protect your option rights, you could record the option, escrow the deed, and record the mortgage.

Some people use a lease option and rehab properties. They resell their option to a rehabber for a quick profit if the property is in need of some repairs. The rehabbers live in the property, fixing it up, and are guaranteed a much higher rate than they had paid for the property; thus, all are benefited. The owner gets a property badly in need of repairs off his hands, the flipper gets a cool commission, and the rehabber gets a great deal. 
Lease Purchase Agreement: In a lease purchase agreement, the tenant also rents-to-own the property. It differs from an option in that the tenant has to buy the property at the predetermined rate within a set amount of time. This is a binding agreement, and both parties have to honor the agreement no matter what the current property rate is. This is a gamble because the property¡¯s value may appreciate or depreciate, favoring either the tenant or the seller.

Assuming Debt In Exchange For Property: Another strategy to buying home with no money down is where the investor assumes the seller¡¯s existing debts in exchange for the property. He thus gets to own a property with no money down, and the seller has his debts written off.

Paying A Higher Price In Installments: some investors will pay a higher price than others offer to pay the money in regular monthly installments rather than a sizable down payment.

Becoming A Partner: some investors have tried partnering to buy a home with no money down. Take the example of Dave: He found a cottage that needed extensive repairs that the owner could not afford, and the owner was not motivated to sell it at a discount because it was bequeath from his grandmother and his second home. Dave found an investor, Smith, who could buy the property and let Dave take care of the repairs. An agreement had been worked out to split the money got from a buyer they found. Thus, Dave got to buy and sell a home with no money down.

Swapping Property Or Personal Services: some investors swap personal property in return for a down payment. They give cars or boats or mobile homes in exchange. There are some realtors who exchange their services in lieu of a down payment. Rehabbers, doctors, and attorneys have successfully used this method.
Using Gold: There are investors who offer gold instead of cash down payment, thereby buying homes for no money down.

Seller Refinancing: this is another creative real estate investing technique. Peter owes $150,000 but can refinance for $170,000. Cindy bought the home, paying $150,000 and owing $20,000, the down payment, to Peter as a second mortgage because that was all she could raise in order to buy the property. 
Refinancing Your Home To Buy another Home: Some real estate investors have tried this technique successfully.

Borrowing From Your Insurance Policy: This method is also adopted as no money down home buying strategy.
These are just some creative no money down home buying techniques. As the investors get more creative, other techniques can be adopted to buy homes with no money down. People use flipping and bird-dogging techniques along with other no money down investing techniques to make a substantial profit. So it is just a myth that you need to have a large down payment ready if you want to buy a home.

 

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