Re: No Money Down A HOAX - Posted by phil fernandez
Posted by phil fernandez on November 13, 2000 at 18:28:42:
No down deals are not only possible, they are done everyday and by many who frequient this site. As my good buddy David says, it’s all in the structuring of the deal.
Just a quick easy simple solution to your needing 3% down on a duplex heres how you get the 3%
Example : Duplex selling for $80,000
Downpayment needed $2,400
Close on the 1st. 2 tenants each paying rent of $600 = $600 x 2 = $1,200
Each tenant has a $600 security deposit that will be transfered to you at closing = $600 x 2 = $1,200.
The rent of $1,200 plus the security deposits of $1,200 equals your 3% downpayment requirement of $2,400 to close the deal.
Now how much money out of your pocket? Nothing. But how bout the closing costs. If you have a motivated seller, and that is the type of seller you should be working with, have the seller pay for your closing costs. Oh the seller won’t and the closing costs are $2,500. How bout drawing the $2,500 off of your credit card. Or if you need 10% down, have your motivated seller hold a small second due and payable in one year with no payments and no interest.
The above example is a very basic simplistic no money down deal, but as you can see very achievable. There are many more ways of accomplishing the same no money down deal that you seek, but that’s for another day.
Hoax, I’m afraid not. It’s just at this time you don’t believe it can be done. Stick around here for awhile and you will change your mind. I learn something new here every single day.