There are a lot of books and programs that talk about doing real estate with "no money down", but it is important to understand what they are talking about here. If someone says nothing down strategies don’t work, it just means they don’t understand what nothing down means or how to do it.
The term “no money down” does not mean “no money is transacted”, it just means that someone else’s money is transacted. It does not come out of your pocket, piggy bank, or savings account.
In fact, people without a lot of personal cash or savings are sometimes better off because they have to approach the real estate investing business differently. They start off on the right foot to making money faster than those that use conventional methods such as a traditional bank loan and/or putting down a large chunk of their own money simply because they have to.
When you are starting out and don't have a lot of investment capital, you will want to target properties you can buy without having to get a loan in your own name. As a creative investor you will want to look for motivated sellers so they are willing to work with you using creative financing methods so you don’t need to get a loan or put up a large down payment. This also allows you to create a win-win situation that will work for you and solves the sellers problems.
Sometimes having a lot of money is a detriment because those who are not forced to be creative miss out creative real estate deals. Even if you have a lot of money start being creative. No matter how much you have, if you keep tying it up in real estate purchases you’ll eventually run out. This is why you hear some real estate investors are "equity rich" but still "cash poor". They have all these assets on paper but they are still living check to check.
In addition to creative ways of getting money there are many creative real estate strategies that are essentially no money down methods. Some examples are real estate assignments including flipping and wholesaling, Subject to arrangements, and certain lease options strategies.
Especially if you are starting out and don't have a lot to work with, one of the best ways to make quick cash is by learning to flip or wholesale houses. This will allow you to eliminate a lot of inherent risks since none of your own money or credit is at risk and you never take ownership of property. With current real estate trends this is also one of the best routes to take and no matter how you define it, when done correctly it is a solid creative no money down real estate solution.
The term “no money down” does not mean “no money is transacted”, it just means that someone else’s money is transacted. It does not come out of your pocket, piggy bank, or savings account.
In fact, people without a lot of personal cash or savings are sometimes better off because they have to approach the real estate investing business differently. They start off on the right foot to making money faster than those that use conventional methods such as a traditional bank loan and/or putting down a large chunk of their own money simply because they have to.
When you are starting out and don't have a lot of investment capital, you will want to target properties you can buy without having to get a loan in your own name. As a creative investor you will want to look for motivated sellers so they are willing to work with you using creative financing methods so you don’t need to get a loan or put up a large down payment. This also allows you to create a win-win situation that will work for you and solves the sellers problems.
Sometimes having a lot of money is a detriment because those who are not forced to be creative miss out creative real estate deals. Even if you have a lot of money start being creative. No matter how much you have, if you keep tying it up in real estate purchases you’ll eventually run out. This is why you hear some real estate investors are "equity rich" but still "cash poor". They have all these assets on paper but they are still living check to check.
In addition to creative ways of getting money there are many creative real estate strategies that are essentially no money down methods. Some examples are real estate assignments including flipping and wholesaling, Subject to arrangements, and certain lease options strategies.
Especially if you are starting out and don't have a lot to work with, one of the best ways to make quick cash is by learning to flip or wholesale houses. This will allow you to eliminate a lot of inherent risks since none of your own money or credit is at risk and you never take ownership of property. With current real estate trends this is also one of the best routes to take and no matter how you define it, when done correctly it is a solid creative no money down real estate solution.
About the Author:
Matthew Soren is passionate about providing real estate training that is straight forward and to the point without charging an arm and a leg for it. You can visit his website at: CreativeRealEstateHelp.com to learn about his system for maximizing profits safely for todays changing real estate trends.
Matthew Soren is passionate about providing real estate training that is straight forward and to the point without charging an arm and a leg for it. You can visit his website at: CreativeRealEstateHelp.com to learn about his system for maximizing profits safely for todays changing real estate trends.
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