No Money Down Real Estate Buying Techniques

Do you aspire to become a real estate investor but are holding back because cash is a problem? Well here is some welcome news; it is just a myth that you cannot become a real estate investor without investing a lot of your own cash. With creative real estate techniques investors have built a fortune by investing as little as possible of their own money. This technique is called no money down real estate buying. It will help you if you get an education on the various creative real estate techniques in order to know the various ways you could make a profit investing little or almost no money of your own. 

Subject To
Some real estate investors deal exclusively in such properties. The owner is usually unable to make mortgage payments that are several months due. The owner agrees to get out of the situation when an investor offers an opportunity to become debt-free.
Martha had a house worth $245,000 and had an outstanding mortgage payment of $160,000. She had some unexpected trouble when her husband died and found out she could no longer afford to make the monthly payments. That is when Bill, a real estate investor, sent her a timely postcard advertising his services. She called him and offered to make a deal. He agreed to take over the repayment subject to her signing an all-inclusive trust deed. Thus, Bill got to own a great piece of property with no money down. Bill successfully established that buying a home with no money down is entirely feasible.

Seller Financing
There are times when the seller agrees to finance you. Buying homes for no money down has been made a whole lot easier by using the seller-financing option. The seller agrees to receive a part of the equity in installments. The deal has to be worked out with both parties agreeing to an interest-only or principal-only loan with variable or fixed interest rates as per their agreement.
Smith had a house worth $150,000; he agreed to sell the property to Mike for $140,000. He got $50,000 up front, and the remaining $90,000 was to be paid monthly with an interest rate of 6%. Thus, instead of investing the full amount, Mike got to buy a house.

Borrowing From Hard Moneylenders
All investors have a good relationship with hard moneylenders, with many of them having pre-qualification letters from the top hard moneylenders. It is necessary in order to finance deals within a short period of time. No investor would like to lose a deal because he did not have adequate resources.
Sam had a debt of $100,000, which seemed to be spinning out of control. He decided to put up a property he owned, valued at $200,000, to pay off the debt fast. Eric, an investor he knew, offered him an all-cash deal of $150,000. Because Sam had an immediate need for the cash and decided to sell it for $165,000. Eric contacted the hard moneylender and closed the deal within a week, getting a property with perhaps equity of $50,000. Thus without using his money at all, he ended up with quiet a bit of money! He repaid the loan and still had a comfortable profit—not a bad example for a no money down home buying technique!

Using Notes 
Some real estate investors who specialize in buying real estate properties with no money down use notes of other properties that they own as collateral or by exchange. 

Peter had bought a discounted note valued at $345,000 for $265,000 because the owner had needed money fast to resolve a gambling crisis. He chanced on a property priced at $350,000, which he could flip for $365,000, at least. He offered the owner the note in exchange for the property and had a fabulous deal. He had made a cool $100,000 profit as well as buying a property with no money down. He could have used the note as collateral to get a loan for its full value if the exchange had not been welcome. Despite pledging it as collateral, he could have ended up making quiet a profit.

There are many more techniques that a creative real estate investor can use to own property with no money down. So do not hesitate if you think you have an aptitude for investing in real estate. Do not hold back because you don’t have much money of your own. Start small, perhaps by bird-dogging and flipping, once you get experienced you can soon start no money down real estate investing.

Buying a house with no money down is a great way to own property without investing much. Do get yourself an education and learn all the tricks of the trade by practicing and perfecting the technique of buying a home with no money down.

 

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