Posted by Frank Chin on February 24, 2002 at 09:29:11:
Good question. Bronchick wrote a post that touches on this subject called “a word or 2 on nothing down”, and the URL is:
Then, there was a recent post called “Big trouble over subject to deal gone bad” under URL:
IMHO, you MUST BE READY to handle a situation if you cannot immediately rent or sell a property, whether you put a down payment or not. This is THINKING AHEAD.
Many people have bad credit because they don’t think ahead, and NO MONEY DOWN is sold as a way of solving the problem. Yet, they’re back to where they started from when they start RE and have NO PLANS in place and NO RESERVES when the property cannot be SOLD ON TIME, or you cannot find the tenant in time.
Yet,it amazed me to see a thread from several days ago where someone only had $500 to do marketing after reading several NO DOWN books but does not own a car. It was suggested to use a bike, borrow a ride from senior citizens, to test riding “dealer cars”.
While that may solve the transportation problem, I doubt that the NO DOWN newbie in question will be able to handle a crises where the house cannot sell, or cannot rent on schedule.