Is "No money down" really possible? - Posted by Patrick Cosgrove

Posted by RichV(FL) on August 04, 2003 at 19:32:49:

Brent,

Thank you for being a voice of reason. I preach eduaction all the time. Its truly the key to success in the Real Estate Investing business.

Its not money that makes money its education that makes it…I have enough lumps to know this :slight_smile:

Great Success,

RichV(FL)

Is “No money down” really possible? - Posted by Patrick Cosgrove

Posted by Patrick Cosgrove on August 04, 2003 at 18:00:23:

I have wanted to begin investing in income producing real estate
for some time. We have all heard of various methods whereby
one can buy properties for no money down. My one question is
this, “Is there ANY truth to those claims”? And if so, would I have
to purchase one of the programs on the market to learn how to
buy properties with no money – or even little money – down? I
welcome any and all replies.

Patrick Cosgrove

Re: Is “No money down” really possible? - Posted by qstaff

Posted by qstaff on August 11, 2003 at 24:17:19:

Yes, they exist. I have one. You want it?

Re: Is “No money down” really possible? - Posted by TomC (MD)

Posted by TomC (MD) on August 05, 2003 at 09:50:50:

I guess it depends on what you consider “little money”.

I bought 2 condos last year with what I consider little money:

#1: I assumed a VA-loan from a seller that wanted out, but only had $5K equity in a $60K property. We split all closing costs 50/50, and I ended up owning the place for about $1750 out of pocket. To me, that’s “little money”. It’s rented out and flows a few $$ each month.

#2: I bought a condo at ~90% of FMV, and the seller took back a 15-year note for 100% of the purchase price at 6.5%. No down payment, but I paid all closing costs - about $3500. Again, it’s rented and clears all of $50 a month. Skinny, I know…but the easy terms and the short note made it worth my while. Personally, for me that is the high end of what I call “little money”.

In both cases, I bought from MOTIVATED SELLERS. THEY CALLED ME.

Hope this helps,
TomC

Re: Is “No money down” really possible? - Posted by deon

Posted by deon on August 04, 2003 at 21:09:43:

yes it is. I have been investing full time now for about5 months now, so far i have down 4 deals all wholesale deals(flips) and put over 30k in my pocket, thats 30k net, without spending one dime of my own money, other than what i spend on my advertising. If you havent heard by now, let me tell you the two main ingredients in re are; knowing how to buy properties creatively and second; marketing for motivated sellers, ex.ads, bandit signs, postcards, letters…ect. hope this helps.

Re: Is “No money down” really possible? - Posted by Joe Kaiser

Posted by Joe Kaiser on August 04, 2003 at 21:09:25:

Possible?

Sure. The question you should ask yourself is . . . “is it possible
for me?”

If you’re brand new, your only real answer is, “no.”

Experienced investors buy with nothing down all the time. For
instance, with a line of credit, you can pretty much just write a
check for any property you want. Is that “nothing down.” Seems
like it is to me.

The trick isn’t the “no money down” part. You can take over
payments all day long on properties with little or no equity. That
ain’t it.

The trick is being able to buy properties with real equity for little
out of pocket.

Finally, all this really only applies to properties you’re looking to
buy and keep. If you know and understand how to "flip"
properties, where you use your buyers funds to pay for your
purchases, then by definition, these are all "nothing down"
purchases.

So, depending on your plan, it’s either easy or hard, but it’s
definitely doable.

Joe

Re: Is “No money down” really possible? - Posted by Marc NJ

Posted by Marc NJ on August 04, 2003 at 20:56:35:

If you consider a 10 dollar earnest money deposit a nmd deal, than I did about 6 in 2002 and 2 in 03’.
Just read the info on this site and you can accomplish this too.
Good luck,
Marc NJ
Statewide Property Solutions

I did it in 1973 - Posted by GL - ON

Posted by GL - ON on August 04, 2003 at 20:24:22:

This was before any of the no money down books or courses were written. I did a deal with a partner. The partner put up the down payment (which he borrowed on his signature) I put up some rehab money and we had some good luck.

In other words, neither I nor my partner put up a penny of our own money to buy the place. And we didn’t even know what we were doing.

Years later when all this nothing down stuff came out I thought " what a load of baloney, you can’t do that." It was some time before I realised I had already done it.

Re: Is “No money down” really possible? - Posted by jasonrei

Posted by jasonrei on August 04, 2003 at 19:57:05:

My first two rentals were no money down- assumed FHA loans w/o qualifying, sellers carried 2nd mortgages, I borrowed a couple thousand bucks for closing costs. Each property already had tenants, and a very small positive.

I’ve bought about 20 rehabs with no money down.

I’ll bet hundreds of houses are bought w/ no money down every week.

Bronchick had the answer. - Posted by Brent_IL

Posted by Brent_IL on August 04, 2003 at 19:14:31:

I don’t know the URL or what it was called, but perhaps others do.

The gist was that CRE purchases were not only possible, but also routine, if you understood two things.

1- if it’s not your money, money down is “No Money Down” for you.

2- you don’t buy in a vacuum. You need money for advertising and business expenses.

Can CRE practitioners make money with a purchase contract and a borrowed pen?

Sure.

Can someone just starting out do the same?

It would have to be a fluke.

Ron Starr posts advice to study for up to two years before making a real offer. Though 18 months could save 18 years of trial-and-error setbacks, I’ve never read a post from someone who actually followed his advice. Admirably, he continues to post.

Steve Cook says he spent a year getting ready before he started making offer. The next year he entered the CRE Hall of Fame.

2 NMD deals in WA - Posted by John Merchant

Posted by John Merchant on August 04, 2003 at 19:12:19:

Heck, I know of one or two SFRs here in WA you could take, subject to existing debt, no down payment & owners would pay for or do all paperwork. No RE commissions payable and both these props have had recent upgrades, are rentable just as they are.

Owners on both are motivated to do something now with these, get out of management hassle, split their partnership and go their own ways. Owner partners both live long way from the props and it’s very inconvenient to show them, manage them, etc.

Anybody so interested, give me a shout @ (253)503-3886 or email me.

J.D.,I know this is blatant ad, but maybe OK this once?

Re: Is “No money down” really possible? - Posted by Brent leach

Posted by Brent leach on August 04, 2003 at 18:35:33:

Yes it is possible, and no you do not have to buy any of those courses to get the information. CREonline is a good place to start.

Regards,

Brent Leach

Re: Is - Posted by Patrick Cosgrove

Posted by Patrick Cosgrove on August 06, 2003 at 16:23:29:

Joe your full of BS