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Updated over 8 years ago on . Most recent reply

User Stats

649
Posts
52
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Steve S.
  • Dallas, TX
52
Votes |
649
Posts

Help me understand NO MONEY DOWN! Is that just putting a lien?

Steve S.
  • Dallas, TX
Posted

I've talked with people that have told me they basically pay ZERO closing costs and that they don't put any money down on their next deal.

I'm 2 rentals into building my portfolio.  I have about $100,000 in equity in the 2 rentals, but quickly learned if i was going to keep doing this the way I'm doing it, it's going to cost me $30,000+ in a 20-25% downpayment and $4,000-$7,000 in closing costs. 

The houses I've purchased have been in the $120k-$130k range.

So have i have two questions:

1) how is someone getting a conventional loan with zero closing costs? (i'm not talking some deal where the seller pays the closing costs or they are rolled into the loan).  They've basically told me they build a great relationship with a local banker and they don't charge them all the fees I'm getting charged by my mid-sized broker in my closing costs

2) When people are saying NO MONEY DOWN, are they really taking out a lien on properties they already have equity in (like the 2 i have with over $100,000 of equity)?  Is that commonly done?  Any threads or blog posts someone can point me to?  I'm going to quickly run short on powder if i keep writing $40,000 checks for my next rental and I want to continue to grow my portfolio

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