Posted by Brent_IL on January 29, 2002 at 01:28:02:
I realized that I didn’t answer your last question.
The answer is yes. In today’s market, one can buy with no money down, with no cash, and with terrible credit. To do so requires knowledge of the local market, a basic understanding of real estate jargon, and the ability to make a financial calculator effortlessly sing a siren song for the seller.
You’re substituting knowledge for lack in other areas.
NO MONEY DOWN? EXPERTS DOES THIS REALLY WORK!!! - Posted by Mike W
Posted by Mike W on January 28, 2002 at 13:54:53:
I am a newbie investor and I am ready to graduate, I have have read Ron Legrands wholesale/retail course, Steve Cook’s Wholesaling for Quick Cash and Everything on this site. I know the next step is TO DO IT. My problem is I have NO CREDIT, NO CASH, I am a retired Policeofficer who had to take a medical retirement a few years back due to a virus hurting my heart. My disability salary and small pension(real small) just get me month to month just like a lot of folks. The only good point is it always comes every month.But I have no extra. Most of the deals I find are thru the MLS, but how Do I answear an agent if They ask for proof of funds when I make an offer. I am planning my first year just to flip contracts till I can build up to about 25k cash reserves so I can then branch out to “subject to’s”
Steve Cook says you should not present an offer unless you yourself have a way to complete the deal if you don’t find another investor or buyer. I want to enter this profession with honor and integrity and I wholeheartedly believe in it being a win-win situation for everybody in any deal. BUT CAN I START WITH NO CASH OR CREDIT
Re: NO MONEY DOWN? EXPERTS - Posted by Brent_IL
Posted by Brent_IL on January 29, 2002 at 01:18:58:
When any of the contracts that I use references money, or proof of funds, or earnest money it says that these are to be deposited into escrow after the removal of all contingencies. “All contingencies” includes my approval of various things, including a final walk-through inspection prior to closing. How about the day of closing?
If the deal you make is sufficiently profitable, you won’t have any trouble selling your deal for cash to someone qualified to close with the seller. Just reassure the RE agency that the cash will be there.
Scroll down to William Bronchick’s post about No Money Down not meaning No Money Needed. He mentions some of the costs you may encounter along the way.
Re: NO MONEY DOWN? EXPERTS DOES THIS REALLY - Posted by Robert (NC)
Posted by Robert (NC) on January 28, 2002 at 21:09:41:
Along with the other advice… You can also hook up with other investors in your area… GET to KNOW THEM… FIND THEM… If you birddog a few deals for some of the other investors you can then start to get a little money, then use that to sign up your contracts that you can then flip… by bird dogging you can learn what soe of the more experienced investors in your area are looking for… so you can quickly get things under contract have a contact list of 9 or 10 or more investors to call and see if they would be interested… leaving enough room for you a small profit and them a larger profit… do a few of those to build up your cash reserve then branch out to buying yourself, or getting some houses under Lease/Option, etc…
Robert (NC)
Re: NO MONEY DOWN - Posted by JoeS
Posted by JoeS on January 28, 2002 at 20:25:34:
I feel for you, I was pretty broke once also, and I searched a long time for a partner. With your background as a Police officer, there may be some people that you have known that have access to cash to be your partner. To get started, do a 50-50 split, half a pie is better than none. If you hunt around real hard, ask everyone you know, someone will come forward as a money partner. Building credibility is the key.
Re:NO MONEY DOWN - Posted by Al - So Cal
Posted by Al - So Cal on January 28, 2002 at 16:45:26:
Start prospecting for a money partner especially a
friend or relative.
Show them some deals that you saw go down a year ago
out of the MLS etc and that what youre into doing.
I missed one - a 6 unit property that sold for $270,000
last year and just sold again for $479,000 and the
proof is in the MLS - solds and pending.
The complete record right there at your disposal.
The ideal partnership is them with the money and you
with the time and expertise to seek out the deals.
By the way Ron LeGrand is the man. The big money is
in the pretty houses and LOCATION. Good Luck.