| If you have ever watched TV after about 11:30 | | | | |
| at night, you've seen people talking about | | | | 5) Back taxes-I've done deals where I've |
| courses on buying real estate with no money | | | | taken over back taxes due--you can pay them |
| down. They show vacation paradises, gorgeous | | | | off at your own speed, within reason! |
| girls, fancy cars, and huge mansions. All of | | | | |
| this is promised to you if you buy their | | | | 6) Free rent-I've done deals where the |
| course on making a million with nothing! If | | | | seller had office space in the building and |
| you want you can spend "only three payments | | | | took 2 years free rent as down payment! Can |
| of $99.99" to find out about this exciting | | | | also work for multi family. |
| area...OR...I'll just tell you for FREE!One | | | | |
| thing I must mention first, however, is that | | | | 7) Upon closing there are adjustments for |
| ANY information, combined with NO action, | | | | that months rent--close on the 2nd or 3rd to |
| produces NO result. If I came over to your | | | | maximize this-and for damage deposits, taxes |
| house and showed you everything in person and | | | | to be paid for the period owned by seller, |
| answered all of your questions, and then you | | | | utility bills to be paid, etc. These can add |
| did NOTHING.....it was a waste of time. Yours | | | | up to a large amount! |
| and mine!! On the other hand, if you combine | | | | |
| information with hard work, persistence and, | | | | 8) Since the bank starts mortgage payments |
| most of all, GUTS, you will be successful, | | | | one month from closing, simply by paying an |
| whether you buy the courses, read the books | | | | interest adjustment of 2 weeks allows you to |
| for free at the library, or get the | | | | use the first months rent and apply the |
| information from me, right here!I mentioned | | | | second months rent to the mortgage payment. |
| GUTS because there's a price to be paid for | | | | |
| everything. If you had a million dollars, you | | | | 9) Borrow on insurance policy, stocks, |
| could buy an apartment building without | | | | bonds, mutual funds, etc. If you allow the |
| hardly any difficulty. Just pick out one that | | | | bank to secure the collateral they will be |
| you liked, had a good return, and passed a | | | | very accommodating. |
| building inspection.If you DON'T have a | | | | |
| million dollars, what are you to do? Well get | | | | 10) Rack up your Visa, Mastercard and |
| ready for some hard work, searching for the | | | | American Expres cards. A bit crazy, but I |
| right deal. Get ready to have a whole slew of | | | | assume its a great investment! |
| offers rejected, and maybe even laughed at. | | | | |
| Get ready to hear some pompous real estate | | | | 11) Borrow from friends, relatives, boss |
| agent tell you (as one told me) "Son, I've | | | | (holiday pay?) Maybe even cut them in as |
| been in the real estate business for thirty | | | | partners! |
| years now, and let me tell you, there's no | | | | |
| such thing as a no money down deal." Get | | | | 12) Partners are a surefire way to get |
| ready to work on a deal and spend time on it | | | | accepted for big bank loans, create enough |
| only to have it collapse.You're going to put | | | | down payments, etc. Always look for people |
| in your down payment in the form of "brain | | | | who are interested in this area, and ask them |
| sweat equity". You're going to pay by | | | | what prevents them from buying investment |
| acquiring more knowledge than others in the | | | | properties. If its time, expertise, etc--then |
| area of creative real estate, and by | | | | you have a fit! All that's preventing you is |
| searching long and hard to find MOTIVATED | | | | money--and you have found this great property |
| sellers, ones who want to get rid of their | | | | haven't you? |
| properties desperately and therefore are | | | | |
| willing to help you out. Most of all, you're | | | | 13) Syndicate a group of people--say 9 |
| going to pay by enduring the inevitable | | | | investors and you get the last tenth for |
| "start-up glitches" that ANY business or | | | | putting together the project--they will |
| enterprise has. If it was easy to do, then | | | | provide the financial strength for the loan, |
| everybody would be doing it, and there would | | | | and maybe even the down payments! Anything is |
| be no properties left! It is this | | | | possible, remember? This is a lot of work to |
| | | | find these people, but VERY lucrative! Start |
| difficulty that makes it EASY, once you know | | | | with dentists and doctors, lawyers, everyone |
| what you are doing!!OK, so here we go, but | | | | that you deal with! |
| first you need to know ONE thing: IN REAL | | | | |
| ESTATE EVERYTHING IS NEGOTIABLE!! Let me say | | | | 14) Rent to buy--maybe you make payments for |
| that again, because it is the linchpin of the | | | | 3 years and then have built up the |
| way creative real estate works--in real | | | | downpayment--meanwhile the property can go up |
| estate EVERYTHING is negotiable!What does | | | | in value, rents rise, and so on. |
| that mean? Are there any boundaries? NO!! Can | | | | |
| you get someone to carry an agreement for | | | | 15) Option to buy--Seller keeps title and |
| sale for 25 years with little or no money | | | | gets all revenue. You simply pay a sum for |
| down and no credit check? YES!! Are there ten | | | | the right (make it REALLY legal!) to purchase |
| ads in the paper offering just such an | | | | the property at a certain sum in X years. |
| agreement, or one? Probably none! What does | | | | There could be a trade for this option, |
| that mean? EVERYTHING is negotiable! If you | | | | example trade an item or service for the |
| find a motivated seller, one who is paying | | | | option. |
| every month to own that property, one who | | | | |
| doesn't have the skills to fix it up, one who | | | | 16) Lets make trading an item or service for |
| moved out of town, or the country, then he | | | | down payment its own idea! |
| MIGHT go for it! Notice that I did not say | | | | |
| WILL go for it, but MIGHT!Think of yourself | | | | 17) Foreclosure property--maybe just before |
| when you had a car that you wanted to get rid | | | | it goes into foreclosure you offer to keep up |
| of, because it was a piece of junk. If | | | | the payments and give seller SOMETHING, |
| someone approached you and asked "how much?", | | | | SOMETIME for his equity. (In a short while |
| you'd say "$1000, firm". But you knew deep | | | | he's not getting anything!) Lots of work, |
| inside that you just wanted to get rid of the | | | | lots of books and announcement services |
| headache!! And if you ever had to wait for a | | | | available. |
| month or two with no one buying your car, | | | | |
| suddenly you were not quite so firm on the | | | | 18) Fix up damaged property--work deal with |
| price! And if the alternator had to be | | | | bank--example: as is it's worth $75,000, with |
| replaced before the car could run, pretty | | | | clean up and fix up its worth 100,000--bank |
| soon you just wanted it OUT of your hands!! | | | | offers 75,000 mortgage based on future |
| NOW, you're ready to accept monthly payments, | | | | value--you have to do fix up--similar to |
| maybe hold something as security, etc. You | | | | sweat equity. |
| just want it GONE!It is the same with real | | | | |
| estate properties! They go from being our | | | | 19) Lease property (ie an office building) |
| pride and joy to an albatross around our | | | | from owner and sub lease it to tennants--must |
| necks--then we're ready to do WHATEVER it | | | | be very legal and usually needs strong rent |
| takes to get rid of it!These people aren't | | | | up effort! |
| going to jump up and down and say "I'm | | | | |
| willing to take a no money down deal for my | | | | 20) Pay someone to cosign for a loan |
| property"! They are going to be depressed, | | | | |
| just like the fellow with a clunker in his | | | | 21) Get realtor to carry his commission as a |
| back yard, sitting there for months. They are | | | | note--they HATE this, but if its needed.. |
| going to need some convincing, but if you | | | | |
| find the "DON'T WANTER", the most difficult | | | | 22) Balloon payment--nothing down, balance |
| part is done! Then you make offers, look | | | | due in three years |
| closely at each property to see if you can | | | | |
| make a go of it (that's a whole other | | | | 23)Private money from mortgage brokers--ask |
| report!) if you can get the | | | | them about it! High rate of interest, but.. |
| property--sometimes you don't want it either! | | | | |
| Then it is just a matter of making offers, | | | | 24) Refinance property either before you |
| either in person, or through a realtor, until | | | | assume it, or after |
| you find someone who is | | | | |
| | | | 25) Find a partner where he takes writeoff |
| ready to deal. The first time is the | | | | for negative cash flow and you manage |
| hardest, because no matter how many times I | | | | property--this can even work with buying your |
| tell you (or the TV guys) that it CAN be | | | | personal residence--investor is happy with |
| done, you are going to think "not for me, not | | | | $200 per month negative cash flow in return |
| here in __________, not any more, not with my | | | | for your taking care of property, always a |
| areas laws and zoning regulations, not with | | | | tennant (you) and investor splits profit when |
| my personality, not with my brains, | | | | selling.That's going to be enough to start |
| etc."Don't you believe it! Look at all the | | | | some gears running in your head. The most |
| people in the TV commercials-all types and | | | | important part is to keep trying, and to be |
| shapes-they have ONE thing in common--they | | | | creative. Combining parts of one idea and |
| went out and DID IT! | | | | another, and always probing for what the |
| | | | seller wants will lead you to solutions. |
| ALL IT TAKES IS GUTS AND | | | | Always probe for ways to make both of you |
| PERSEVERANCE!!Here's the "stream of | | | | happy. Everyone wants all cash, right |
| consciousness" of ideas on how to buy with | | | | now--not everyone gets it! Think of the |
| $000.00 down, but keep in mind the whole time | | | | junker car in the back yard and look for ways |
| that IN REAL ESTATE EVERYTHING IS | | | | to HELP the other person--they want to |
| NEGOTIABLE!1) The simplest way to buy with no | | | | sell!Most of all, keep looking! It is not a |
| money down is to get the seller to carry an | | | | failure on your part if someone is clinging |
| agreement for sale. Monthly payments for 25 | | | | to the hope that they'll get a certain price, |
| years are possible if the seller has no need | | | | or certain terms. If they can-great!! If not, |
| for the money, and can be convinced to get | | | | check back in a few months. Many properties |
| his 6,7,8% return secured by his house | | | | are still sitting there and with a MUCH more |
| instead of buying a 4% bond. | | | | receptive seller after they have the property |
| | | | "sitting in their backyard, rusting" (or |
| 2) If you have good credit and want to put | | | | racking up negative cash flow and maintenance |
| no money into a property, try a first | | | | and property management headaches). Try and |
| mortgage, Vendor carries a big second for | | | | try again!Check online for new info and more |
| remainder. Seller gets , say 75%, and carries | | | | opportunities, network with other investors, |
| 25%. | | | | ads can be used to signal what you are |
| | | | looking to find, partners wanted, etc. Go to |
| 3) Again with good credit, try first, | | | | your public library for more real estate and |
| smaller 2nd, and a Personal Line of Credit | | | | business information. Keep |
| for remainder--especially if the gap is only | | | | |
| $10-15,000. This can even work for low priced | | | | your mind working and searching--keep |
| properties where the first mortgage is | | | | looking for properties and more |
| combined with a PLC for the remainder--be | | | | information--one idea can be worth a fortune |
| smart enough to go to another bank for PLC | | | | to you --go to seminars when they come to |
| and tell them that you're going to make an | | | | your town--and the total adds up to the |
| invstment with money--and don't tell ANY bank | | | | "Eureka!" screamed in the middle of the |
| that you're doing a no money down deal! | | | | night.Buying with a low down payment is |
| | | | obviously much easier than buying with |
| 4) Payment over time-seller wants $5,000 | | | | absolutely nothing down, so be sure to save |
| down, for example. How about $400 per month | | | | up your money to make it easier for you. Even |
| for a year? You're still paying it, but over | | | | a no money down deal can require cash for |
| time-maybe the property will generate enough | | | | legal fees, closing costs, etc.Best of luck! |
| extra money to pay this! | | | | |