The list of investors who have used creative real estate investing techniques such as real estate no money down, and made huge profits is steadily growing. As more and more real estate Guru¡¯s conducts seminars and classes to educate interested people about the techniques, more investors have begun experimenting with no money down method of real estate investing. 

Here we are discussing some no money down tips for real estate investing: 

Lease Option

A great way to no money down real estate investing is a lease agreement with an option to buy the property. Herein the buyer agrees to sing a contract to option the property or agree to buy the property at a predetermined rate. They will have to pay a non-refundable deposit as an option fee and the seller agrees to consign some or all of the rent towards the purchase price of the property. This will work ideally as the buyer can live in the property, learn about the plus and minus points of the property and can cancel out on the deal if they feel it is not up to standard. The option fee will be lost of course but it is better than buying a property with a major fault that is not disclosed in the contract to buy.

Owner Financing And Substituting Other Equity As Collateral

Some investors use another real estate no money down technique where they buy a property by borrowing part of the asking price and giving the mortgage papers of other property that he owned deferring payments a few years. It is usual for the buyer to include a clause that he can sell the mortgaged property as long as he substitutes other property of equal value in its place. This way, he can resell the seller's property at a higher rate at the same time not worry about repaying the seller for at least a couple of years. It is a much used real estate no money down technique.

Sellers Paying The Buyer

A good real estate no money down investing technique is where a confident investor appraises a property with a large loan pending against it. He has either approached the seller or vice versa, but tells them he cannot deal with them unless they pay some extra cash for him to buy the home and ease their loan. They usually end up finding him the extra money in order to take care of the loan. The buyer can then resell the home at a higher rate than paid for buy him and make a profit anyways! This is a rather rare kind of no money down real estate investing technique.

Flipping Or Wholesaling

One of the most profitable real estate no money down techniques is flipping or wholesaling where the buyer does not use any money at all. Flipping involves a buyer let us say Joe, who scouts around for houses that are for sale and in need of repair. Joe then estimates the properties after repair value let us say $500,000 and quotes a price of $425,000 for the property on account of the extensive repairs. He signs a sales contract with an ¡°and/or assign¡± clause after his name and binding the contract by depositing a minimal sum of say $20. Joe the contact a rehabber and quotes a price of $435,000 for the property. The rehabber does some repairs of let us say $30,000 and making his total expenses $465,000. The rehabber can sell it for a profit of $35,000. 

This way, the flipper Joe gets a profit of $10,000 without the hassle of actually buying the property. He just assigns the property to the rehabber. It is usual for the flippers to incorporate a clause that says they will honor the deal subject to a partners inspection of the said property, thus they can cancel deals in the event they are unable to find rehabbers. This is very rare as flippers usually have good marketing skills, as they need consistent supply of motivated sellers as well as rehabbers. They can do this by frequent advertisements in the local newspaper such as ¡° buy house ¨Cany condition¡± and ¡° property in need of repair for sale at much lesser than asking price etc. and maintaining a list of both motivated sellers as well as buyers. You could work a deal with private moneylenders to finance the rehabbers and earn commission in the process.

These are some of the techniques used to buy real estate with no money down. Some other real estate no money down investing techniques are also practiced but not much such as swapping property, exchanging skills, taking on a financing partner while you take care of the management aspect and become the working partner etc. No money down investing in real estate has helped numerous people who have used creative techniques to buy property without utilizing much of their own cash. If you are knowledgeable, have adequate experience and know how and have support of a like-minded attorney, real estate no money down investing techniques can help you make a fortune.

 

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