All this talk about "little" money down...HOW?

Question

I have been reading posts on BP for a few weeks now, and many people have posted that they were able to buy (non owner occupied) multi-families with minimal money down. Some as low as 5%. HOW? My broke tells me it's impossible. Minimum is 25% down. I'm very interested in letting my cash earn multiple properties, so if there are any secrets, please unleash them for all us investors.

Thanks,

Johnny

Thanks,

Johnny

Johnny Kula · Answer

@Brandon Turner I like your motivation ;)

3 weeks ago I didn't know what a HELOC or 50% rule was.  Since then I've read 5 books, took my RE Agent course (test on the 25th), done 4 webinars, a half dozen podcasts and have done analysis on over 6 properties, looked at 2 and have studied my area so much that I practically know it inside and out.  I just worked my Broker and reached out to a Private Lender about non-traditional financing.  Ive weened out one contractor and have a meeting with my A+ contractor this eve as well to discuss the near future. The crappy thing is there's nothing to make an offer on yet, but we are just getting over 10 feet of snow so I think its about to rain Multi's any minute!  I am locked and loaded!  I will Steal, Reno and Rent used car salesman style and will make money!!!  There is nothing in my vocabulary that will allow otherwise!  BP has changed my life!!!!!!!!!  Mark my words, I will be a future podcast!!!  Woot woooooooo!!!

James Miller · Answer

Sounds to me like you need to get a different broker. I have bought lots of properties no money down and gotten cash at closing

Brandon Turner · Answer

Hey @Johnny Kula - there are two types of people in this world:

• Those who say "It can't be done." 
• And those who ask "how can it be done?"

I can tell which type your broker is. What type are you? ;)

And thanks @John Thedford for the shout out!

Nadine Massarelli · Answer

Private money has it's own set of rules.  The key is forming relationships.  Good luck

Johnny Kula · Answer

@Nadine Massarelli thanks so much, I didn't really think of using private money and have just reached out to someone tonight to see if it's something that would be worth pursuing.

@John Thedford I have the book, might buy it in Audio version so I can get smart quicker during the commuting time.  MA is very expensive, so 25% of a deal here could put you out up to $160k easily...Not an easy market to get into quickly....but I'll definitely be trying to find better options.

Account Closed's book on no money/low money down asap!

Thanks everyone for your recommendations.  I'm extremely happy to have found BP!  Invaluable resource!

Johnny

Johnny Kula · Answer

@Brandon Turner I'm over here talking about "stealing" places like a used car salesman, and as I'm reading your book no money/low money down, I'm sinking lower and lower in my seat every time you mention the negatives of trying to steal property ethically and morally.  So I'd like to retract that comment above to say "get a good deal" not "steal"!  See!  Learning every day!!!

Johnny

Josh Caldwell · Answer

Johhny

I dont do business outside of my own state, each state has its own laws, and I dont want to learn an expensive lesson in anther state.  For example, in FL (or Md)  you cant legally market to someone who is in foreclosure.

Great idea on the flyers but make sure your state law is ok with that idea.  Find a local RE attorney and run that idea past him.

Be careful with buying from people who are in foreclosure.  You can save their credit, but they need to leave the house, or you could end up with a trashed house after many months of non payment.  What you can offer them is a chance to escape the fatal funnel that they are in, nothing more.  They may be able to buy a house in a couple of years because of you.

Where you can become a big hero is in helping someone who cant buy a house through a bank, to achieve the American dream of being a home owner.  There are  a lot of good people out there who have an explainable blemish on their creidt.   You can help those people.   Make sure you check their credit.  many credit repair places will help you find buyers who are just about ready for bank financing.  Reach out to a local credit repair agency and tell them that you can offer houses with financing attached.

to your success

Josh

Josh Caldwell · Answer

@Johnny Kula

for starters, your borker is not an investor, his span of knowledge is limited.  You can buy a lot of property with no money at all.

I will give you a simple example.  Take a property that was on the MLS and didnt sell, an expired listing.  The market has already proven that this house wont sell the traditional (bank and money down) way.

So now you have a seller, who if he has any motivation to him, should be willing to be flexible.  You need to ask him, why he wants to sell during your interview with the seller.  The best answers sound like "lost my job", relocated for work", "got married and Im paying two motrgages".  Pretty much anything were debt relief would make you their hero.

then you offer debt relief.  I will buy your 200k house for the terms of your existing mortgage  is the offer.  You can just walk away from it now.

There are multiple ways to do this and you can read all about each technique here on BP,  It might be a subject-to purchase, lease option, land contract, agreement for deed.  The easist way to find the right direction to close the deal is to ask your real estate attorney how he or she would do it, and go for there.

Keep your cash for as long as you can.

to your success

Josh

Josh Caldwell · Answer

@Johnny Kula

for starters, your borker is not an investor, his span of knowledge is limited.  You can buy a lot of property with no money at all.

I will give you a simple example.  Take a property that was on the MLS and didnt sell, an expired listing.  The market has already proven that this house wont sell the traditional (bank and money down) way.

So now you have a seller, who if he has any motivation to him, should be willing to be flexible.  You need to ask him, why he wants to sell during your interview with the seller.  The best answers sound like "lost my job", relocated for work", "got married and Im paying two motrgages".  Pretty much anything were debt relief would make you their hero.

then you offer debt relief.  I will buy your 200k house for the terms of your existing mortgage  is the offer.  You can just walk away from it now.

There are multiple ways to do this and you can read all about each technique here on BP,  It might be a subject-to purchase, lease option, land contract, agreement for deed.  The easist way to find the right direction to close the deal is to ask your real estate attorney how he or she would do it, and go for there.

Keep your cash for as long as you can.

to your success

Josh

All this talk about "little" money down...HOW?

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