ero down doesn't really to buy the property to make
mean no down payment. Most money. There was enough potential
sellers need something as a profit in fixing up and selling
down payment if they are the house, that other investors
providing financing. Most banks were happy to pay to take his
won't do 100% financing on real place. The key here was that he
estate that is purchased as an knew how to find a good deal, and
investment. Zero down just means his offer included the right to
that the down payment won't come assign the contract to another
from your money. So where will investor if he wanted to.
you get it? Can you really profit
from real estate without having Now, if he had put the $500
money to start? deposit on a credit card, it
truly would have involved none of
The answer is clearly yes. At our his own money, except enough for
local investor's meeting the gas to drive around looking at
other night, one investor told me houses. Of course, he would have
that he recently found a fixer paid a 3% cash-advance fee and
upper, but couldn't arrange 18% annual interest for a month.
financing. What did he do? He This would have reduced his
assigned the contract to another profit by $22.50. Yes, zero down
investor for $6,000. In other is possible and profitable.
words, all he ever had into the
deal was a $500 "good faith" More Zero Down Ideas
deposit, and his time, and he
made a $6,000 profit. This is What if you want to actually
called "flipping." complete the purchase, renovation
and sale with zero down, and none
Not only did he not need a down of your own money invested at any
payment, but he didn't even have point? There are dozens of ways
to do it. One way is too find a cash advance for a good faith
partner. In fact, tomorrow I'll deposit. The offer, however, is
be talking to an investor who for $5,000 down, no payments, but
wants to use my money to complete the entire remaining balance to
the profitable renovation of a be paid within one year, with 7%
property. I want a share of those interest. Why should he say yes?
profits. Believe me, if the deal
is good, there are people who You explain that he will get more
want to bring their money into than he wanted - maybe even a few
it. thousand in interest too. His
collateral will be safe, because
Here is one example of how you unlike his renters who ran the
might combine a couple investing place down, you'll be pouring
techniques to keep your money into fixing it up. He will
investment to zero. Let's assume have a first mortgage on a home
you find an owner who is tired of that will soon be worth much more
being a landlord. He has a than what he is owed.
run-down house that he wants
$80,000 for. You look at it and If he agrees, you find an
see that with $4,000 worth of investor who has about $15,000 to
clean-up and repair it could sell put into the deal. This will
for $116,000. All the costs cover the down payment, repairs
totaled will add up to around and other expenses, with a little
$9,000, leaving $27,000 potential left over for any unexpected
profit in the deal. You have no costs. In return, he'll get his
money. investment back and half the
profits. If you complete the
How about offering the seller house quickly and on budget, this
more than he wants? Offer him means over $10,000 for each of
$85,000, using a $500 credit card you.
investing a penny. Making sure
The seller gets more than he is that everyone wins is the surest
asking. The other investor gets a way to make a deal work with zero
great return on his investment. down.
You make $10,000 or more without
About the Author:
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, home inspection checklist, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Source: www.isnare.com
