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

by David E. Williams

No money down real estate investing has been around for a long time. The phrase really refers to the fact that you, as the lead investor, does not put any of their own money into a down payment on the deal. A down payment is often still involved, but the money comes from other sources: another investor, or perhaps 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.

An additional form of seller provided financing that you could take advantage of is a lease arrangement as opposed to a traditional sale. Under this method, the seller leases you the property and thus you would make a monthly payment to the seller directly as opposed to third party financing source. The main benefit of this arrangement is that it nullifies the need for a down payment. This method also allows you the option of improving the property for sale or to sublease it to a third party.

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 good means of finding investing information is to look on the internet. Many websites exist that contain valuable, and free, information. To utilize one of these websites to get the information you need, try the search string - real estate investing no money down. This search should reveal programs and utilities that will aid you in your efforts 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