How to Buy Property With No Money Down (14 ways!) | 611

how to buy property with no money down

Today, we are answering the big question – how to buy property with no money down! Many believe it is not possible but we have an example that proves them wrong and the 14 ideas to show you how to start doing real estate with no or very little means. You’ll also be able to mix and match those ideas to find countless additional ways to do it. Stay tuned and learn what double closing is, what the strategies are when the ownership is subject to existing financing, and how to lease the property.

 how to buy property with no money down

What You Will Learn About How to Buy Property With No Money Down (14 ways!):

  • Join the free course where we’ll show you how to do real estate with little or no money
  • The right money-related question you should be asking yourself
  • The example that proves that anyone can find finances
  • How to find the funding by assigning the contract
  • What double closing is
  • Where to find the hard money
  • How to refinance your property at the real market value
  • What means to take on property that is subject to existing financing
  • The strategies for obtaining a property through “subject to” approach
  • How to utilize the benefits of installment sale
  • What wrap financing is
  • How to lease the property
  • How joint ventures look like

Whenever you’re ready, here are a few ways we can help:

Work with me One-on-One

If you’d like to work directly with me on your business… go to REIAce.com, share a little about your business and what you’d like to work on, and I’ll get you all the details!

  • Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Become an Epic community member at The Epic Real Estate Investing Show 
    One of my favorite things to do is share with investors the latest and greatest tactics and strategic friends I make. I do it every week and you can listen in by subscribing to The Epic Real Estate Investing Show podcast on iTunes – Click Here.
  • Grab my book, Epic Freedom ($1) 
    I frequently hear from people looking into investing in real estate for the first time, “How long is it going to take?” So much so, I wrote a short book about the 2 easiest and fastest strategies to a paycheck in real estate. You can grab a copy for $1 and I’ll pay the shipping – Click Here.
  • Join our Badass Investor Program and be a Case Study 
    I’m putting together a new Badass Investor case study group at Epic Real Estate this month… stay tuned for details. If you’d like to work with me on your real estate investing, go to FreeRealEstateInvestingCourse.com to get started.
  • Also, check these out:

Thanks!

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Transcript:

Speaker 1: This is Theriault Media.

Matt Theriault: What’s up? Hello and welcome to The Epic Real Estate Investing show. This is the show where everyday people come to get the tips, they come to get the strategies and the tactics to escape the rat race using real estate. So if you are just getting started and you’re looking to take down that first deal, I’m working with a small group of investors inside of our pilot program called Your First Deal. It’s exactly what it sounds like, so if you’d like to join us, you may at freerealestateinvestingcourse.com. Freerealestateinvestingcourse.com, and it is the free course that will show you how to do this business with little to no money.

The real estate itself, that’s the easy part when it comes to no money. But running the business without money, that can be a little tough. But that’s what I’m gonna show you how to do in this course, okay? This is what this course is all about. And this free course, it’s actually better than free, because I’m going to pay you to complete it. So if you want to invest in real estate and you’re concerned about your finances getting in the way, I just vaporize most of your money excuses right there. How’d that feel? And then after that, after we’re done with today’s show, I’ll go ahead and I will vaporize the rest of your money excuses when it comes to the real estate, all right?

So, as I’m talking about this, if you’re one of those people that don’t think this is possible and you think that you can’t buy real estate with no money, you’re right. You can’t. No, if you don’t believe you can, I mean why would you even try, right? Why would you even try? The question is not “Can I?” or “Can’t I?” The question is more “How can I?” For example, I do this thing in Epic Intensive from time to time to really just kind of prove this point that everybody knows how. Even if you don’t think you know how, you know how to do this.

And what I do with that is, I pull out a hundred dollar bill and I’ll ask who’ll trade me $20 for this “100 bill. Right? That’s a good trade. You’d give me 20 bucks right now if I gave you a hundred bucks back, right? And everybody in the audience, everybody in the room, everybody raises their hand and the first person to come up to me and give me the 20 bucks, I go ahead and I make that exchange. I give it to them. And then, next, after I’ve proved that point I go ahead and I hold up $1000. And I ask, “Who will give me $800 for this $1000? And everybody raises their hand because that’s a good trade, right?

If you gave me 800 and I gave you 1000 back, that’s a really good trade. No doubt everybody raises their hand. But, there’s a problem now. You see, not anybody, or nobody, not yet at least. Nobody in the room has $800 in their pocket. No one has the 800 bucks on them. And I say the same thing, “All right, well the first person to give me 800 bucks, I’ll give them a thousand dollars.” And from at that point, we just take a morning break and we go ahead and we mingle for 15, to network for 20 minutes or so.

And everyone during that break is now trying to figure out now? And everybody does, essentially. Everybody can. Most do. People start, they’ll go out and they’ll borrow. They’ll go get cash advances on their credit cards. They’ll partner with other people in the audience. The point is, they figure out how. So right now, if I were to offer you one million dollars in exchange for 10,000, that’s all you have to do, is you just have to come up with $10,000, and I’ll give you one million back. There is no doubt in my mind that you would figure it out. No doubt.

I mean you’d probably sell something. You’d probably borrow some money. You’d probably partner. You might get a loan, you might pull credit cards together. You might do a combination of all those things. You might pull some equity from somewhere. The point is, you would make that happen, right? One million dollars for your $10,000, that’s a good exchange, isn’t it? It is. Yes. And I know you would figure it out. You indeed would figure that out. And you wouldn’t need to read a book about it, either. No.

You wouldn’t need to hire a coach. You wouldn’t need to take a course. You wouldn’t need to listen to a podcast. You wouldn’t need to watch a YouTube video. You wouldn’t need to do any of that to make it happen. No. You’d figure it out, wouldn’t you? Yeah. And see here, if I put a time limit on it, of say, an hour. So, panic time, right? Na. Not for a million bucks. That wouldn’t get in your way in the slightest, would it? You’d find that $10,000. So, why could you do that, but you can’t invest in real estate with no money?

The mindset is exactly the same. That’s the point I’m trying to make here. The mindset is the same. That real estate represents the one million bucks. Now you’ve just gotta go find that 10,000. Once you embrace that mindset and you start looking at your deals in that manner, you are going to recognize that money is everywhere. There is no shortage of money. The system is overflowing with money looking for your deals.

So the answer, find the deal first. Go out and find the person that’s got that one million dollars in their hand. And then when you do, it’s so much easier to find the 10,000. The mindset and how you would come up with the $1000 or the $10,000, it’s exactly the same. Once you have that mindset, you can do any deal with none of your own money. So with that said, I’m going to give you 13 no money down strategies to make this no money down idea work for yourself, all right? And I’ve got 13 here, there’s probably an infinite number. Maybe not infinite. The countless number for right now, for sure, of no money down strategies because when I say there’s a countless number because I’m gonna give you 13 of these things and you could start combining all of these things. You can start combining them into various combinations and come up with all your own little strategies. My point is, if the profit is there, the “how” is gonna show up. If the profit is there, the “how” is going to come, all righty?

So, 13 ways to buy property with no money down. All right, so one through four are all cash transactions, okay? So you go and you go find the deal. It’s gotta be a deal, right? You’ve gotta find a million bucks first if we refer back to that previous metaphor. But you go find the deal, okay? And now, here’s how you can do it. You’ve got four different ways of just a deal, just a straight, simple, no money down strategy is you can assign the contract before you ever have to buy it. And when you assign the contract, someone is going to pay you for that assignment, for the right to finish out that contract that you were able to get.

The second is, you can do a double closing, right? You can have that, where you are the buyer on one contract and then you go out and you find a buyer for it and so then you’re selling on the second contract, you mash those two together. Ideally, you want to sell it for more than what you’re buying it for and you get to keep the difference there. Then there’s an all-cash transaction, and you can go out and just find hard money. Hard money is really easy. It’s all based on the deal. Very little has to do with you and your own personal credit score.

So if you go find a deal, you go do a quick Google search for hard money, there is no shortage. You’re going to get pages and pages and pages and pages right there in your town of hard money that is looking for somebody to give their money to. They walked out of their house this morning, kissed their wife goodbye, patted their kids on the head, got in the car and on the way that they’re driving to the office, they’re just hoping that someone like you is going to walk in with a deal so they can put their money to work.

And you’re walking out each morning, hoping that someone’s gonna be there with some money for your deal. If you only knew how the other side was thinking, it wouldn’t be so intimidating. All right, so hard money. It’s everywhere. Just a quick Google search. And if you got a good deal, here, check this out. If you have that one million dollars, we’ll just say that that one million dollars represent our good deal. And you only need 10,000 to take down that one million, then you could talk to three different hard money lenders and start shopping them and force them to give you the better rate. Or maybe more money, right?

So, once you’ve got deal, you’ve got control, you’ve got the power. Then the all-cash transaction, then a private money lender would work as well. So it’s Aunt Martha, Uncle Bob, maybe it’s mom or dad, maybe it’s your friend, maybe it’s the person in the cubicle sitting right next to you. Maybe it’s the person on the treadmill right next to you. So, it’s everywhere. So you could do an assignment, you could do a double close, you can do hard money, you can do private money.

Number five, now, you can go in and you can buy a property or add value to it, so you buy low, and then essentially you could refinance that at market value, so you could buy the property with one of those three strategies, or one of those two, I guess. The hard money and private money. You could buy the property there, you can go through and add value, and then you could refinance at the actual value. Do you understand? So if you bought it at a hundred, and you put 25 into it to fix it up, so now you’ve got 125 in, and its value is 175, you can go in and probably refi that property at 150. I know Rob King just did something very similar to that in Minnesota. Someone from The Epic Community. And Mercedes does that all the time. We do it with The Epic Fast Funding, right?

People use that money to go in and buy the property and then they’d get the next day, a next day refinance on it, get all their money back, pay all that Epic Fast Funding money back and typically end up with a little bit of extra to put into their pocket as well. So, you buy low, you add value and then you could refinance at the real market value. And so you could do that with like I said, you could go ahead and take it down with the hard money. A lot of people in The Epic Community are using that private, or not the private, but The Epic Fast Funding. They’re using that as a bridge loan.

And if you wanna go check that out and just have that ready, armed and ready for you when so you do find that deal, you can go to epicfastfunding.com and you can get your bridge loan capital there, all righty? So, that was number five. Number six, subject to. So a subject to is where you take ownership of a property, you actually go on tile, but the seller’s loan is going to stay in place. So you’re taking ownership subject to the existing financing. So you’re gonna take over the existing loan for the seller, you’re gonna take over the payments, you’re gonna take over the maintenance on the property. And maybe you’d give them some money up front, maybe you don’t, that’s all negotiable, and that would bring me to number seven.

So, a subject to, where a seller actually waits for the equity, that you essentially become almost a partner with a seller. So, you could take that property over subject to you’re taking care of the payments, and you’re taking care of the maintenance and the seller just kind of sits around and waits until you refinance or sell the property. And then the seller can get their profit that way. Again, no money out of your pocket to make that happen. Okay? Very little.

Number eight, subject to, and then you can assign that contract. So you get a property under the contract subject to the existing financing and then you can assign it. And this works really well for selling to an occupant owner, a resident owner, someone that’s going to live there. Works pretty well for pretty houses as well. So if you find the right situation, it’s a great solution.

Number nine, you can take the property over subject to, and then you could sell it seller financing. Maybe you gave the seller, you took over their payments and you gave them 10 grand to go and get into their new place and move and get out of the way and then they can start their own life, you take care of their property now. And then you sell the property to someone else, but you’re gonna sell it with seller financing. So you’re gonna wrap another loan on top of that. And that could be into an investor, it could be to a resident owner, and there’s so money different ways that you can make money this way.

So you put 10 grand down to take over the property, but when you resell, you could ask for a $20,000 down payment. Or a $30,000 down payment. 40 or 50 thousand, it all depends on how good of a deal that you got. And then so you can create some arbitrage there for yourself with the down payment. And then, you could also create some arbitrage there with the payments as well. Because you’re selling it via seller financing.

Even if what you’re selling at four is at the exact same interest rate as the underlying mortgages, the one you’re taking over subject to, right? If that mortgage is 5%, there’s a $100,000 balance, you’re making the payments at 5%. You go and sell that property for 150,000 at 5%, there’s some space there. There’s some cash flow for yourself there as well. So you could create the arbitrage for yourself with the down payment, you can create it with the monthly payments as well. All righty? And so, yeah. The payment that you’d collect from the buyer, it would be greater than the payment that you make to the mortgage owner, and that’s how you’d create that cash flow for yourself, all right?

So what number was that? That was number nine, okay? Number nine. Number ten, you can buy a property on a land contract, or a contract for deed. The land trust, another term for it you might have heard. Basically, what you’re doing is you’re taking over the property utilizing the benefits of an installment sale. So you’re making really small payments for it. I typically don’t like to buy properties this way. It’s better to sell them this way, and here’s why, is because when you buy properties this way with a land contract, the seller still stays on title.

Now, you have that contract that gives you full right, and use the same exact right and use as an owner would, but you’re not officially on title until you fulfill the obligations of that contract. But, if it’s a nice property and it’s something that you want and that’s your only means for doing it right now, and maybe it’s just a temporary situation until you do find the real financing for it, then that’s a really good strategy. And then you could just rent the property out for more than what you’re paying on the contract, and you could create the monthly profit for yourself that way as well.

All right, so number 11. I Actually said this, I spoiled this a little bit just earlier. But wrap financing. So you’re taking over subject to, instead of paying off that existing loan, you could wrap another loan around it. So, if the seller wants $150,000 for the property, right, and they own 100, they want their profit, right? They want that $50,000, they want 150,000, they owe a hundred. What you can do is leave that $100,000 mortgage in place and create a second mortgage of $50,000 on top of that one. That way, they get their profit as well and you get in with almost little to no money down.

So, even though the property has a mortgage on it, you can still do owner financing with that type of situation. And with that said, out there, one-third of all properties are owned outright. Most people don’t realize that. One third. I think it’s a little bit more, I think like 34, 35% are owned outright. So negotiate with the seller finance terms. Clients like Corey Kendig, you’ve heard his name before. Nathan Price, haven’t mentioned him in a while. Josh Miller, they’ve all really embraced these creative structures of seller financing and they are taking it all the way to the bank. Those guys are all total rock stars just because they’ve started to leverage this type of financing with the seller and this type of negotiation, these creative structures with sellers.

Number 13, lease options. So a lease option, you can lease the property but you can also purchase an option for a very small amount. I mean it could be a hundred bucks, 500 bucks, it could be very small and you reserve the right to purchase that property somewhere in the future, at a set price. So, I mean that could be six months down the road, it could be a year down the road, it could be six years down the road. And you’ve got the right to purchase that property in the future. And so what that can do, is you can rent it out in the meantime and then it gives you the time to go out and find the money elsewhere to take over permanent ownership of it, okay?

And then, number 14, joint venture, or partnering. Partnerships, they can take a number of different forms. It doesn’t have to be 50/50 money partners, but 50/50 value partners is kind of what you wanna look at it. And what I mean is, some person can bring in the money and you brought in the deal, so that’s a 50/50 partnership, right? Or maybe it’s a 75/25 partnership. Because you brought in the deal, you’re gonna manage it and you’ve got the down payment but you just need the credit score to bring in the balance. That could be that way.

One person finds the deal, one person finds the money is typically how it’s going to work. But that’s an example, okay? So just know that it doesn’t have to be 50/50 money, it can be 50/50 value. So you can buy, hold and sell real estate with very little to zero of your own money. And go to freerealestateinvestingcourse.com. I’ll walk you through the steps of executing the easiest one of these no money down strategies and I’ll prove it to you. There is people inside of that community right now that are cashing checks. There are people that are completing the course, they’re getting their money back, they’re getting a bunch more money back because they’re doing deals.

Yeah, I’m going to pay you to complete the course. If you close a deal and post a picture of your check inside the community there, I’m gonna pay you even more for that. So if that sounds like something you wanna join us on, go to freerealestateinvestingcourse.com. Freerealestateinvestingcourse.com, all righty? God bless and to your success. I’m Matt Theriault, living the dream.