No Money Down A HOAX - Posted by Mike

Posted by Rob FL on November 14, 2000 at 15:38:05:

I try to pay it back ASAP because the interest rate is high. On both of the above examples I resold the house shortly after acquiring them (via lease option and owner financing) so much of the credit card balances got paid back at the sale. The remainder is small. I don’t keep outstanding balances for more than a few months at most.

No Money Down A HOAX - Posted by Mike

Posted by Mike on November 13, 2000 at 16:28:01:

Hello Everyone

Dave Del Dotto, Carlton Sheets, and Russ Whitney all tell you that they can buy Real Estate with no money down. Buy my course and you can too they say. I went to three banks today and I need at least 10% down to buy duplexes or other rental property (with high interest). I need 3%-5% down if I owner occupy a duplex. So can someone explain to me where this no money down hoax comes from? I don’t wan’t to waste my money buying these real estate programs.

Re: No Money Down A HOAX - Posted by Mike

Posted by Mike on November 15, 2000 at 22:34:21:

My first 125k worth of houses (6) were NO MONEY down, a couple bucks for water dept deposits and they were all then rented in 14 days or less…with food possitive cash flow.

Anything is possible if you think “outside the box”

Much Success…

Re: No Money Down A HOAX - Posted by Bill Gatten

Posted by Bill Gatten on November 14, 2000 at 20:14:28:

As the little fuzy guy (whatzizname) said to Luke Skywalker when Luke commented “I don’t think I can do it,” as was having difficulty mentally raising his space ship out of the bog: “Therein lies your inability Luke.”

Bill Gatten

Well, OK, If You Insist - Posted by Hugh James

Posted by Hugh James on November 14, 2000 at 15:06:21:

In 1983 (I think) I flew to Newport Beach, California and spent 3 days with Jack Miller & John Schaub at their “Making It Big On Little Deals” seminar. Best investment in time and money I ever made.

Now call me a liar if you want, but those were still the high, high interest rate days in southern California. Folks were encumbered with 3, 4 and even five mortgages. I watched as John took over a deal a group of students had passed on and made a deal over the phone to buy a SFR ranch near Annaheim – and the seller PAID HIM $5,000 to take it. Now I know that doesn’t happen often, and this was a very unusual circumstance for the seller (long story), but I heard the deal made and assume they probably closed. I came home and figured (didn’t know any better) that if John Schaub could get a seller to pay him to buy his house, I ought to be able to get one for no money down. And that’s just what my partner and I did.

It wasn’t much of a house, but we took it on a CFD for no down from a tired grandmother who had given the house to her grandson and then he went on drugs and couldn’t manage life.

We painted, cleaned and rented it to a neighborhood minister for three years, and then sold it to him on a CFD of our own. His church paid it off a couple years later. As I recall we were clearing about a hundred a month on the rental and made around $10K when we sold it.

I’m no Donald Trump, but it was just the first of many, and several have been no money down, period. So maybe it is a hoax, but if it is, please don’t tell me. I’m not smart enough to have figured ou yet that it won’t work.

Re: No Money Down A HOAX - Posted by Mark (SDCA)

Posted by Mark (SDCA) on November 14, 2000 at 11:15:29:

Vets do it all the time. They get a VA loan. ZERO down.
But let’s take it a step further. Go to this web site:

You will see minimum down payments for owner occupants of 0-1%. 1% may not be literally nothing down but its pretty darn close.


Re: No Money Down A HOAX - Posted by Buddy V

Posted by Buddy V on November 13, 2000 at 20:15:49:

The whole point of this forum is NOT TO GO TO YOUR BANK, and NOT TO SPEND YOUR OWN MONEY. I have personally purchased 4 properties this year with no money down. One I made a $14k profit, one I make a $22k profit, one I made a $9 k profit, and the fourth one is yet to go on the market for sale, but I hope to make another $22 k profit on that one. IT CAN BE DONE

Re: No Money Down A HOAX - Posted by Rob FL

Posted by Rob FL on November 13, 2000 at 20:15:31:

One thing to remember is that you can’t buy every property no money down especially when using bank financing on them.

The last 2 I bought no money down went this scenario:

  1. Free and clear house for sale by tired landlord. They’ve depreciated it down to zero so if they sell it they will take a big tax hit. I buy it for 62K with 10% down with the seller holding a 30 year mortgage (with a balloon at year 15). The remaining 10% is borrowed from a credit card. It produces a small but positive cashflow after PITI, repairs, etc. (about $100 a month).

  2. Guy is 3 months behind on his mortgage. He calls me and wants to dump the place. He has minimal equity since he just bought it a year ago. I make up his back payments (again with a credit card) about 2K in all plus another $600 payment 3 weeks later. Then I lease option the place shortly thereafter. I get 4K option consideration. I am actually ahead of the game with no personal money into the deal, a positive cashflow each month, and a decent profit 2 years down the road when it hopefully sells.

Hope that helps.

Re: No Money Down A HOAX - Posted by phil fernandez

Posted by phil fernandez on November 13, 2000 at 18:39:43:

Kevin / Mike,

Ways to not come out of pocket for your downpayment.

1./ Tenant rents. Close on the 1st.
2./ Tenant security deposits if your state allows.
3./ Do a lease/option collecting money upfront from your tenant/buyer to pay for your option to the original seller/ optioner.
4./ Take a property subject to the sellers existing mortgage.
5./ Get a straight option and either sell the option ( assign it ) or sell the actual property you have the option on.
6./ Buy a note at a discount and trade as a downpayment to the seller.
7./ Get a partner to put up the down.
8./ Master lease the property with you being credited the management fees towards the downpayment.
9./ Give the seller a one year lease back in exchange for a downpayment.
10./ Call Jim Piper and ask him how to generate the downpayment.

These are just the first 10 that I thought of in the last three minutes. There are probably 250 more.

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.

Did your name change within seven minutes? (nt) - Posted by Ben (NJ)

Posted by Ben (NJ) on November 13, 2000 at 17:54:43:


If you believe - Posted by David Alexander

Posted by David Alexander on November 13, 2000 at 17:00:34:

it’s a hOax then your mever accomplish it. First thing open your mind to the possibilities. Second thing realize buying a property in a no money down transaction requires that you understand how to structure deals.

Right now your still trying to think with conventional wisdom… And I gotta tell ya the conventional folks out there for the most part Ain’t makin no money.

Read everything on this site, open your mind, consider the possibilities and you’ll put some deals together.

David Alexander

Re: No Money Down A HOAX - Posted by MikeSon

Posted by MikeSon on November 20, 2000 at 24:40:37:

NO MONEY DOWN DEALS are possible. Sure . My local
loan broker can do 100% financing on good credit.
He can also do NO MONEY DOWN for rotten credit but
need seller to take 5-20% seconds.

The question is, how can you do NO MONEY DOWN, if
sellers become informed about estimating
market value of their homes.

RE deals are based on equity. If I were a seller,
I would never sell my house a penny below market


Nice Job nt. - Posted by phil fernandez

Posted by phil fernandez on November 13, 2000 at 20:28:15:


Re: No Money Down A HOAX - Posted by Ryan (NE)

Posted by Ryan (NE) on November 13, 2000 at 21:23:39:

Have you really had good luck using your credit cards for down payments? And, how soon do you pay off the credit cards?

Just wanting to know for my own creative deals.

Ryan (NE)

Re: No Money Down A HOAX - Posted by Farrah

Posted by Farrah on November 14, 2000 at 22:07:29:

Who is Jim Piper?

Amen brother David! - Posted by Jim IL

Posted by Jim IL on November 13, 2000 at 18:43:23:

Keep preaching that REI gospel my brother!
I know that if it were not for people such as yourself, I STILL would think that this stuff does not work.

I STILL get a kick out of people that think this “No money down” and “No bank qualifying” buying of property cannot be done!
Heck, some of them are even family and friends who have seen me doing this for a while now.
I gave up trying yo convince most of them, and simply respond by saying, "How many houses do you own now?"
And of course the nay sayers all say, "Well, we are just waiting for you to get caught!"
Caught at what?
Caught being on vacation when they are at work?
Of course the real fun ones are those who say, "Well, I tried to do that once, and it did not work for me."
I used to ask them just exactly “How” they “Tried it”, and there answers were all the same.
"No bank would give us a loan with no money down on investment property."
Well gee, that would be akin to trying to get a car to go forward while in reverse.
If they would simply shift to the right gear (read; mind set and education in this business), then the car would move forward.
Assuming of course they had studied and made sure all systems were in place.

I have to admit something, this weekend, I was REALLY lazy, I did just about as little as I could possibly do.
Because my “Boss” is one heck of a guy and gave me the time off.
It is just too bad this “Thing” called “Creative REI” does not work where I live.

I hope all is well with you and yours.
Take care my friend,
Jim IL

Re: No Money Down A HOAX - Posted by MikeSon

Posted by MikeSon on November 20, 2000 at 15:51:56:

The loan broker is with Edina Realty in MN.
Edina is the biggest realty company here.

As far as I know, he’s one of only a few that can
do NO MONEY DOWN deals for FICO as low as 530.

I believe he operates under Moneytoday Finacial
Group. If you call directory in Minneapolis,
you can get it.