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