Various Articles


No Money Down Real Estate Investing: A Tried And True Concept

by Scott Roemermann

No money down real estate investing is a concept that has been around forever. Investing in real estate with no money down is straight forward and really refers to the fact that the lead investor has none of their OWN money down in a deal. This often means there is still a down payment involved but it may have come from another investor or through creative financing.

It is paramount to do your research if you wish to invest in real estate with no money down. You must be educated in the real estate purchasing market, and know the ins and outs of real estate investing from a logistical stand point. Particularly, you must be aware of the rules and regulations specific to region where you will be in investing.

Another key issue is that it would help greatly to find a seller that is interested in seller assisted financing. The seller is the key to the ability to invest in property without a down payment. This seller assisted financing is the hardest part to finding property with no down payment.

There are different types of seller assisted financing. One method is to have the seller pay your down payment. For instance, you are purchasing a property for $111k and you tell the seller you will purchase the property for $111k if they pay the $11k down payment for your mortgage, so you are effectively purchasing the property for $100k. This method works well.

If you are looking for seller-assisted financing, one method is to lease the piece of property from the seller instead of buying it. Instead of sending a monthly payment to the bank, you would instead be sending it to the property owner. The advantage of this is that it lets you circumvent the bank's normal down payment requirements and you are free to renovate and update the property in order to sell or lease it to another person.

For many people starting up in the real estate investing field, methods of investing without a down payment can eliminate the need for large amounts of capital to provide down payments, initial closing fees and other such barriers to investment in property.

A method to find information on investing is to look on the internet. There are a lot of websites out there, with plenty of good and free information. You may use one of these pages in order to find the information you are looking for. In the case, try to use the string real estate investing no money down. This should help you find programs and utilities to advice you in your search to invest with no money down.

No money down real estate investing is a simply concept that requires no up front funds by the main investor. This strategy is best utilized by an investor who is well versed in the laws, regulations and general knowledge of the industry has researched the industry. This technique is most effective when seller assisted financing is available. Examples include the seller providing the down payment and leasing options. If you invest in real estate with no money down, the returns can be quite profitable without any up front costs. A great amount of information is available online under the search string - real estate investing no money down.

Published May 7th, 2007

Filed in Business, Real Estate

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