No Money Down With Cash Buyers

When it comes to real estate investing, sometimes having money can put you at a disadvantage in your business. Imagine spending your hard-earned reserves on a real estate deal, only to wait until you sold to property to free up your cash again. There are many creative ways to buy real estate investments with no money down.
One of the largest investor setbacks is the thought that putting no money down can cause a deal to fall apart. This is the exact opposite from the truth. If the deal is good, no money need be involved. You just have to be creative with financing and offer a conservative 70% of what the house is worth. This leaves you 30% to play with numbers and have enough money to pay for repairs. You may see many deals fall apart by this rule, but the ones that work in your favor will be worth it.

The key is to look for distressed properties, or ones in which the seller is in dire need to get rid of it due to financial troubles. If the property is in need of repairs, then you never pay asking price for it. Always go well below market value, and you will walk away with no money down for the purchase. Just make sure you don’t get yourself into the same situation as the current homeowner. Be prepared to incur rehab expenses temporarily while you prepare the home for the market again.

Let’s talk about two types of house flippers- retailers and dealers. A retailer makes a straightforward purchase resulting in actual ownership of the property. He then turns around and sells it. On the other hand, a dealer never buys properties, just contracts. They find dirt-cheap purchases, sign the contract with the seller, and then assign the contract over to a retailer. “Assignment of contract” is very lucrative without putting money down.
Okay, so from where does this money to fund the purchase come? Below are sources to help you fund your investment:

- Take out a loan from a hard moneylender.

- Find a cash buyer to flip the property to at closing for 90% of the value.

- If you have another property, refinance the home to borrow money from the lender.

- If you have a home equity line, pull out funds from that.

- Bring in partners with cash to fund the deal.

Scouting is another great way to buy with no money down. Essentially, you scout flipping information to other potential investors. It is very low risk and you never worry a little creativiabout having cash or credit issues. You do all of the grunt work of gathering important data from homeowners for a lucrative fee from investors. This fee could be anywhere from $500-$1,000 just for the information. The rest is up to the investor.

Just remember any successful real estate business will take some work. You must invest your time and energy into building your portfolio. But, with ty, patience, and persistence you can buy with no money down and make a lofty profit from your investments.