Last Poll Results - No Money Down!

Comments(5)

• 
  pmatheson14th August, 2003

  I usually take the easy way... Have the seller carry on another property.

• 
  bernel774th August, 2003

  Thanks pmatheson1,
  
  But I don't understand your reply. That's what you do to buy with no money down?

• 
  AllCash4Property4th August, 2003

  I typical get into contract (Closing date 90 days) find investors. And that’s it. It costs me a fully refundable (never cashed $100 check)
  
  An in-depth view of what happens (here are the secrets you think they don’t tell you, but they do, you just were not listening) it’s so obvious and simple you think it’s to easy
  
  Typically I sell the investor on the sale price after rehab.
  
  I.e. I create contract for $100,000 property give check for $100 (to be cashed at closing) Contract has 2 "weasel clauses" and an "or assigns clause" I tell the investor the house will be worth $250,000 after $50,000 worth of work.
  
  I ask the investor how much money he would want to make on the property (i.e. %20) that's $50,000.
  
  Now he has a purchase price of $200,000
  
  Now subtract $50,000 for rehab and $10,000 to close
  
  Target Purchase price is now $140,000
  
  At this point I've done nothing and the investor thinks he is getting a steal at $140,000 (which he is) but I’m making $40,000 on the deal
  
  But we are not through
  Now I need $10,000 for me, for the favor of showing him the opportunity. This solidifies the win – win concept
  
  So he will now be purchasing my contract for $50,000.
  
  I spent no money.
  
  If I want to be involved for some reason, we will setup and LLC and he will do all the money stuff and I do all the paperwork lawyer stuff.
  
  The real problem I notice people have is they think they are creating a win - win situation, but they never convey that to the investor, they think the investor will just see the value. You must make people see your way and think they thought of it themselves.

• 
  pmatheson14th August, 2003

  burnell77
  
  1. You own ppty fmv $ 150k
  it has leins of $100k
  Equity = $ 50k
  
  2. You make offer on $250k
  Get new loan 80% $200k
  get seller to carry $ 50k on your previously owned ppty, you use that $50k for down payment on his ppty.
  
  Need 2 escrows
  1. seller/buyer
  2. lender/borrower
  
  Both close concurrently.

• 
  MikeT10135th August, 2003

  with a 40k line of credit and a beacon in the 700's, hopefully stated income is no problem..there's aboslutely no reason why you cannot acquire at least 6-700k worth of real estate over the next 12 months. you're in south florida, building and income producing properties are 2 things to consider. people will always move to florida, especially in the near future when the majority of the baby boomers retire (70 million, 23% expected to move here) with the right planning, you can position yourself accordingly. or you can get out there and do rehab work and locate motivated sellers, and they're everywhere
  
  To your success, and mine.
  [addsig]