No such thing as "nothing" down

[Account Closed]

Based on my 10+ years investment experience, I've come to the firm conclusion that there is no such thing as a "nothing" down transaction.  To clarify, I am not saying that you cannot get a deal down with no cash down.  What I am saying is unless the seller is extremely desperate and he/she will pay you to take the property (ex. property with environmental hazards, etc.), you must contribute one of the following to get a deal done:

Land (The Deal): 

You can locate a really good deal, conduct the due diligence, draft the investment summary, locate a reputable property manager, obtain debt financing quotes and raise equity to close the transaction.

Labor (The Expertise/Property Management):

You can locate a capital partner who has a deal and provide property management services to increase the value and generate an attractive return to investors.  Many people who have run property management companies end up becoming investment managers when they realize how critical property management is in value creation. 

Another example are lawyers experienced in complex real estate transactions who exchange their services for part of a deal.  

Capital (The Cash):

This one is self-explanatory. Cash is king.  If you have capital, you shouldn't have much trouble locating labor and, by partnering with someone who's got experience, an attractive deal.