Most people think that when they read no money down it could mean no down payment needed. Sellers who agree on closing a deal without any down payment is seldomley heard of. Almost all sellers ask for a down payment or something that could be use as a down payment. The down also serves as a reimbursement for some costs needed for the real estate to be marketed.

In addition banks would think twice or won’t even consider financing the entire valued price of a property or estate. With the bank not loaning the whole amount and a seller who is asking for a down payment this is where the question comes to mind how to land a property with no money down needed?

Simple, by recognizing and supplying the needs of all the parties involve. Banks usually need security on there investments, how? By letting them know that the property involve is valued at a much higher price than the amount that they are loaning it. The broker also needs some money to move things around and he may be even willing to finance the estate with his money. The next step is to find the means to provide the bank and the seller’s needs without using your own money on the transaction.

Lets just say that no money down means having a down payment but without using your own money. How and where you ask? This is the time to be resourceful.

A No Money Down Example

There was a financier who came to me and told me that he got a broker but had trouble getting the finances. What he did was he gave the deal to another financier at our property assembly for the amount of $6,000. His only contribution to the deal was a good faith $500 deposit, and it could be possible that he got that cash from a credit card advance. The other financier saw some light into the deal where he could even make around $20,000 on the real estate so he was more than willing to give $6,000 to switch places with the man and this is what they call “flipping”.

The new financier got the means to supply the deal meaning the seller got what he wanted which was money and the bank was happy to give him the loan since the property’s value is going to rise after some improvements. The solution to the problem was the first financier had a know how of finding good deals and added to his offer that he can get a partner on the contract or give it to another financier.

More No Money Down Ideas

What if you want to get the entire purchase with renovation and everything without investing your own money? Well the answer is to find a partner like this one investor who talked to us about using our money to finish a beneficial restoration on a home. We are interested in the deal and if its good there are many investors who are interested to put their money on the deal.

Another example is what if you encounter a landlord who is tired of being the owner and he is selling his dilapidated home for $80,000?. You could resell it for $116,000 for just $6,000 worth of repair and clean- ups. This could mean that your over all cost would be an estimate of $11,000 including holding and closing costs. A remainder of $25,000 of possible profit that sound great but the question is what can you do without money?

Presenting the owner with a deal that is a bit more than what he wanted. For instance you can suggest $85,000 plus $500 credit card cash and a good faith deposit for him. But what you’re offering a monthly fee, a $5,000 down and the remaining amount is to be paid within the span of one year with a 7% percent interest rate. Why should he take the deal?
Carefully lay out the details and clarify that he will get more than what he bargained for plus an interest in thousands. He will be happy to know that his home will be renovated and spruced up instead of leaving it to his lodgers who will only make the house worse.

Great if he agrees with the deal if not then move on and find another and another one until you find someone who’ll say yes. Next is how to find the $11,000 worth of repair and holding cost and the $5,000 down payment. Find a financier who has the $16,000 needed for the deal which means no money down for you and half the income goes to him. You both get $10,000 each by getting the house done fast and sticking to the budget.

Observe that everyone gets a good cut on the deal, the seller gets more than what he asked for and the other financier gets a good come back from his investment plus you get $10,000 without spending a dollar. The technique is to know what everyone wants and finding a way to give it to them, this is one way to secure a deal and making a deal with no money down from you.

Author Bio: By Ashlee Pannell: A Dallas Real Estate Broker, With Nu Home Source Realty a Dallas Texas Real Estate Company. We are Home of the 20% Commission rebate to most of our buyers. Ask about our bucks for buyers program. (C) Copyright, Nu Home Source Realty LLC. All rights reserved

Category: Real Estate
Keywords: No money down, real estate, no down payment