No Money Down Deal- Is There Such A Monster?

[Toyin Dawodu]

Have you ever done a "No Money Down" NMD  real estate deal?

How did you structure the deal?
Did you make any money?
How did you exit?

In the eighties and nineties, the late night television audience were inundated with commercials about buying houses with No Money Down.

From the King of No Money Down, Robert Allen to the granddaddy of late night infomercials, Carlton Sheets, the rage was, "Anyone can buy a house with Nothing Down"

If you grew up in that era of real estate boom and burst, you may have bought, followed or been indoctrinated into the process of buying houses with non of your own money. Or have you?

In fact, that is one of the processes I focus on as my business model for buying and selling houses.

If that is the only process you know, you tend to specialize in it and it's your first choice.

So far, in my career, I have done more than 450 deals. I have just completed my house deal number 467. Yes, I have now bought and sold 467 houses, and unlike that famous commercial “doing it, did it, done it, I am not done yet, I am still going strong.

Here's my latest no money down deal. This is a foreclosure. I had to skip trace the owner all the way to China, wait for them to come back to the US, close the deal and negotiated with the bank to reduce the balance of the loan from $419,000 to $106,000

HERE ARE THE DETAILS 

ARV.                                $193,000

Purchase Price.               $106,000

Repairs.                                15,000

Gross Profit.                         72,000

Hard money loan.              120,000

Closing
And Loan costs                     6,544


Cash Down ZERO.                  0.00

Cash in my pocket
at closing                             $7,546

Bonus Check at 

closing                                $6,360     

Total Cash received at closing              $13,906

Total Gross Profit  at exit                       $85,906

This is one of five NMD deals I completed in 2015. The bonus check of $6,360 came to me as my commission for being the listing and the buyer's agent. This should encourage everyone to get a license and to impress on licensed agents that they should be investor agents instead of just agents.   

In fact, this is how majority of my deals are structured because this is the only system I know.  For those who are still wondering, NMD means no money out of your pocket. 

But I know I am not alone. In fact I know there are hundreds if not thousands of fellow investors who specialize in zero down deals.

So I have decided to invite everyone to come on this forum and pound their chest just to prove to Newbies, and other nay Sayers that there is such a Monster as "No Money Down" deals in Real Estate.

In fact, there is a reason they call it "Real Estate", the money is REAL!

To make this a fair competition, you must describe your "No Money Down" deal and be able to prove it with an address and closing statement. 

So I have decided to put my money where my mouth is.

To encourage the newbies and others who may want to learn the art of the No Money Down deal making process, I am inviting everyone to come on this forum to tell us about their classic No Money Down deal"  My final closing statement will be uploaded or linked at the end of this competition.

Over the next 90 days, if you have a deal, that you previously did or you completed within the next ninety days, please come on this forum and tell us how you did it, how much you made and what newbies can learn from your experience.

This may be your way of giving back to the young, up and coming newbie investors.

As an incentive, I have decided to put up the following gifts for the three deals that are voted the best by the forum and a group of veterans.
These tools will be donated by my company for the best three No Money Down deals. My deals are not included

An I-phone
An I-pad
One year subscription to Bigger Pockets as a pro or to Realty Trac.

In addition, if your deal qualifies, you may also be included in the book I am curating for the No Money Down Hall of Fame.

Where the grand daddy of No Money Down Deals will be writing the preface and also describing his favorite No Money Down deal.

So let's have your contributions, send in your stories and let the voting begin.

Forum members can vote on a scale of 1-10. If you have a deal, done a deal or will be doing a deal in the next ninety days, tell us about it.

I like the challenge of No money down deals. If you know how to structure them, you would never have to worry about money again in your life.