Posted by youngsterz on October 21, 2003 at 02:25:21:
John,
Tweak your thinking a bit for a moment and consider another angle on this. No money down can also mean that you don’t use any actual cash out of your own pocket, but that you use OPM from multiple sources. The easiest example of this is to use a home equity line of credit on your own house as the source of funds for a down payment on the purchase of a second property. Still a no-money down deal, and the net effect is the same as 100% financing.
You can also do this with OPM from other sources: Family money, hard money, credit card advances, whatever.
You’re right–it’s pretty hard to find a nice little seller financing deal where you really don’t have to come up with no money down. The more likely situation is that you have to learn how to use OPM from the main source – the big banks. They have a thousand ways to loan you money, you just have to play their games and get it from them.
Sure, look for the great 100% finance or seller finance or assumable deals, but in reality, they represent a very small fraction of the available properties out there, so why limit yourself?
A lot of books tout how easy it is to just walk into a property with nothing down.How feasible is it? Even with owner financing will lenders let you borrow without any of your own money? Where is the best place to find these properties? I am in MA and the real estate market here is very strong. Considering a 3000 sq ft 3-family in my neighborhood is $400k, getting 10-20% down is a lot of money.
Re: Where to find no $ down deals? - Posted by Bill_AL
Posted by Bill_AL on October 24, 2003 at 21:01:50:
It is absolutely amazing what you can do when you are dealing with thoroughly motivated sellers. If you learn how to locate motivated sellers, and how to structure no money down or low money down transactions, you can achieve fantastic results. Aim to become an expert at finding motivated sellers. Try to network with people who already are experienced at what you want to do. Some of them will likely help you find success in doing these types of deals. I wish you the best.
Bill