Profile picture for sahmof2boys

As an investor, how can you purchase investment properties with no money down?

  • August 04 2011 - US
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Answers (7)

Profile picture for Blue in d Nile
If you have no "capital" to "invest", what are you 'investing"?

There are only 3 possibilities:
1) Capital or similar "assets"
2) Time
3) Experience.

The best way to learn to invest with no capital is to apprentice with someone that invests in that asset class.

That means you will be investing your time, but your "return" will likely be "experience" instead of capital.

But eventually with "experience", you can invest your experience to return capital.

You will not be able to partner with someone else that is bringing the capital if you don't have one of the other items to invest.

(And most of those zero down programs others mention is subsidized housing for low to moderate income, for those that qualify, for their residence; not for "investment").
  • August 05 2011
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This is a legitimate question.

VA loans are the most common "zero down" loans in the USA.  Aside from VA...Our area (Southern California) has numerous down payment assistance programs.   Rural development loans, improvement loans, redevelopment loans,  first time home buyer programs... there are lots of options if you know how to find them.  

These programs operate in a variety of ways... silent seconds (no payments due until sale of property), some are equity sharing, some aren't. Some will even disappear if the owner keeps the home long enough.

You're welcome to email or phone me for more information.    
  • August 05 2011
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There is only one good way to purchase property with no down-payment, but that doesn't mean no money out of pocket.  There are closing costs and other fees totaling about $5,800 on sub-$100k properties.

Our zero-down program only applies to our rehabbed properties in Atlanta at this time.  You will have a 30-year fixed rate mortgage on your property.  You can call our office for more information on the financing structure and credit requirements.

Marco Santarelli
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  • August 04 2011
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Well, I see some interesting (and funny) responses here, but there are certainly realistic ways that this could be done....So keep watching late night TV as those more "creative" strategies MAY pan out some day, but here's a thought or two for the more amateur investor:

1) Seller Held 2nd Trust--This works more often than you may think...it's just that nobody will ASK for it! And this works only if the Seller has some equity...the Seller will hold, say, a 25% 2nd trust mortgage (Seller will BE the 2nd trust bank) and YOUR bank will lend you 75%. The 25% essentially is your "downpayment", as your 1st trust lender should be happy enough with a 75% "loan to value" ratio. This warrants further discussion and a well-written contract, but that's a little info for you.

2) "OPM"--Other People's Money! Think about bringing in a partner! Maybe one that will cover the ENTIRE downpayment, aqcuisition (and even FIX-UP money too!!!) simply for a percentage return on their investment (maybe 10% return?). This works well if you can find some friends with money who don't really want to be in the RE business but would like solid returns on their $$$.

Happy Investing!
  • August 04 2011
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Profile picture for SoCal Engr
Scam others into fronting the money, while you sell yourself as the consumate investment flipper. If you hit a homerun, skim your percentage off the top and then give some back to the money folks - all the while telling them what a great return they got. If you strike out, find some new meat.
  • August 04 2011
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They basicly middle man sales, I put person A's house under contract for X and then try to sell it to person B for Y. It's that easy , you are on your way to Riches in real estate. Buy my program now. (just joking about the program)
  • August 04 2011
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you can't. quit watching late night tv, save some money. 
  • August 04 2011
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