Financing deals with little money

[Jesse Rodriguez]

Bought my first property with my own money from W-2. I would like to buy more but using my own capital will take long! I know there are “creative financing” out there but I don’t completely understand them. For example, on BP a lot of people buy 12-20 within 1 year and that seems crazy to me. A lot say they put 0$ down into the deal. How is that possible? And what does the person get in return? If anyone has any experience they would like to share, that would be greatly appreciated.

[Michael Slockers]

@Jesse Rodriguez congrats on your first one!

As with many questions on the forums, the answer is probably, it depends. If you are looking at doing conventional financing and purchasing off the MLS, it is going to be hard to get around some down payment. Some options for zero down would be that you bring a deal and a partner brings the money. Or you bring a deal that's enough below market it has an LTV that allows it to be financed by a local bank or hard money lender or private lender with none of your money out of pocket. Those are just two of hundreds of scenarios.

I would challenge you to make sure you aren't thinking too much about NO money down. Instead think about how you can maximize your strengths. A lot of people focus on no money down and for me if I have $10,000 in a project that is Cash flowing well and has built-in equity, I'm sleeping pretty good at night.