Real Estate No Money Down Investing Techniques - How To Make Money Without Investing Much Of Your Own Cash!

A popular myth preventing many people from investing in real estate is lack of adequate finances. This theory has been disproved time and again as people using creative real estate techniques have built fortunes by investing no cash or a nominal amount of their cash using no money down techniques.

No Down Payment Investing Techniques

There are many techniques that can be used to secure a no down payment deal. Investors use subject to or assume the owners mortgage where the owner sells the property “subject to” the buyer assuming the mortgage responsibility. This technique is very popular as the buyer assumes the existing mortgage. But it is essential to get the deeds in the buyer's name to avoid complications in the future. Of course it goes without saying that the rules regarding due diligence and researching property and any liens attached to it have to be investigated thoroughly. This method has made it possible for many people to own their dream homes without any down payments! A no money down payment mortgage can be a fabulous chance to get to own a home.

Lease option is another real estate no money down technique. Here a buyer options a property along with leasing it. The buyer has an option to buy the property at a pre-determined rate within a certain time span. But options can be risky, as the sellers may not keep their end of the bargain especially if there has been a sudden boom escalating property prices. If you are a buyer be sure to record the option and if possible escrow the deed. Lease options are not confined to single homes but also to commercial real estate properties.

Jack came across a commercial multi-tenant property worth $700,000. The property was in good shape but the owner, Ned, had to leave town and was willing to lease using a NNN. He was not averse to signing an option with a trust worthy tenant. Jack optioned the property along with getting a master NNN lease. The option was for 5 years and since Jack did not want to spend extra time managing the property he got a management consultant firm to take over its management. The property was 100% occupied within no time on account of the professional management consultant. He had quoted a lesser than value price on account of it being just 75% occupied so he ended up making a fortune by opting for a lease option! 

Commercial real estate can be acquired or dealt with much the same as single family homes, same no down techniques can be applied too such as flipping, rehabbing, seller financing, tax liens and pre-foreclosures etc.

Peter found this multi-tenant commercial property worth $450,000. The property was in need of repairs and had one of the total 4 retail spaces without any occupant. He estimated the repairs at $75,000 and taking into consideration the due diligence information offered to buy the property for $300,000. He signed a contract, which gave him a right to assign the property and gave a nominal deposit of $50. To be sure he also included the clause that the deal will go through only if his partner inspects the property and agrees to close the deal. He then found a rehabber who agreed to pay $330,000 and quickly flipped the property for a profit o $30,000! Is that not something, just investing about $50 and making a profit of $30,000!

Jake had a birddog contact him about an amazing piece of property whose after repair value was around $300,000. But it was in need of total repairs as apart from the structure everything needed to be rehabbed. He offered $130,000 and after being refusing twice finally closed the deal at $150,000. He personally supervised repairs and gave the property an amazing rehab job worth $110,000. He sold the property for $320,000 making a profit of $60,000, minus $10,000 including birddog fees and other expenses! 

There is seller financing where the sellers who have no mortgages on their home finance the buyer. The buyer will have to pay a regular monthly mortgage to the seller instead of to a bank. There are some investors who offer to pay the seller’s monthly debt payments instead of money down payment.

Thus assuming one cannot invest in real estate without much money is very wrong. Having a good relationship with moneylenders is also recommended as it can come in handy to close deals fast where time is of the essence. Real estate no money techniques have helped many enterprising individuals achieve success beyond imagination and with little investments of their own.

 

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