One of the most rewarding businesses is investing in real estate. There are so many ways that people with no money or little money of their own can invest in real estate and get rich beyond their imagination. There are several creative real estate tactics to investing in real estate no money down. You will need experience as well as business acumen in order to fully exploit the real estate no money down strategy.

There are several methods of investing in real estate with no money down. Many investors use all the strategies for getting a real estate no money down deal in the course of their career. Many investors have maintained good relationships with hard moneylenders to fund any deals necessary as well as to offer quick cash necessary to close any deal. If you are pre-approved by moneylenders it will be easier to get clients to trust you and workout a deal with you. A guarantee to offer instant cash goes a long way in finalizing no money down deal. Some investors just do not like to use any of their personal finances to fund their projects so they use various techniques for investing in real estate with no money down. 

Here are some tips to help you invest in real estate no money down: 

Assuming Seller's Existing Mortgage

In this method of no money down investing, an investor does not make any down payments but assumes or takes over the owner's existing mortgage. This has to be done after taking due permission from the mortgage lender of course. In case, the lender objects, you could try working out an assumption mortgage where the property remains in the sellers name but he is bound by a carefully framed legal contract whereby he/she has acknowledged that the house is yours technically since the day you began to pay for the mortgage. You have to be sure too with theses kinds of deals that there is no due-on sale clause as it could be a problem. Research and find a good attorney to help determine that the contract is in your favor and that there are no hidden clauses. Be sure to inspect the property and check if the condition is as stated by the owner. A fail proof technique for real estate no money down investing.

Borrowing Money From Private Money Lenders

Many investors have realized the importance of knowing hard moneylenders and establishing good relationship with them. This will be useful while opting for real estate investing with no money down. You could also use a home equity loan or line of credit to take care of the down payment. Let us say there is a property worth $200,000 and the owner is facing perhaps a foreclosure or is moving and is in urgent need of cash. The investor will offer to buy the property at say $175,000 and borrow the money from a hard money lender at 12 to 5 points, he can sell the property again at its fair market value and end up making a huge profit. Of course you have to be careful in dealing with the hard moneylender making sure that you never default on payments and you could also profit by referring him to the hard money lender and ensuring the deal is closed quickly as well as getting a referral commission from the lender. It is a great way to invest in real estate with no money down.

Seller Or Owner Financing 

Another popular option is when the seller of the house offers to finance the buyers. Instead of a down payment the buyers agree to pay a higher monthly payment or may decide to lend the buyers the down payment amount for a fair interest rate. Sometimes the sellers borrow money from other private moneylenders and lend it at a higher interest rate to the buyers thereby making a profit too. Some creative investors borrow money plus take out mortgages on the new property; pay the seller at the same time put the property for sale at a higher rate thereby again making a quick profit. In case the property does not sell, the buyer will then offer to finance the sale of the property at terms that ultimately benefits him!

Thus, with a will to succeed, good marketing skills to have a consistent supply of motivated sellers as well as a list of potential investors, good communication skills and creative investing techniques, it is possible to ensure real estate no money down deals happen! It is absolutely essential to have a good attorney too to ensure that the contracts signed are in your favor. With private moneylenders, that are willing to lend collateral-based money investing in real estate with no money down is no longer difficult.

 

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