No Money Down Strategies

[Justin Pierce]

Ok everyone, what is your best no-money-down strategy?

I haven't done one in a long time. I find that most no money down deals are just not good deals or good properties in the first place. Also, it seems much harder to do now post 2008 financial bubble.

Tell me your stories, strategies, and philosophies on the subject.

[Bill Gulley]

Dawn, it happens and is for real, but rarely do they just walk away without money, unless there is another really good motivating factor. You also need to be in a position to pay that loan off quickly if the deal blows up and the lender calls it due.

4 big things you need to be in RE, capital/money, credit, reputation and knowledge. If you lack one, the other aspects must make up the difference. While I have all these, I could go at it with any one aspect. I just mentioned the credit and other asset approach examples, if you have cash it makes life much easier as Don mentioned. You still need knowledge and must be trusted.

Anyone reading this thread thinking they will be able to go at a deal with no money and no credit will need to have tons of knowledge, and thinking along those lines probably means they don't. I suppose some really slick salesman type might talk themselves into something, but they usually fail as they overload and can't perform. Anyone letting you into a deal also must trust you.

I've done many no money deals, one was a purchase over 850k and the seller paid me and kicked in additional cash for a development, never would have happened by anyone with less than exceptional skills, knowledge and with a personal reputation. That's why I get upset with gurus, saying or suggesting anyone can do RE right out of the box, just doesn't work that way unless there are some very good skill sets available to them. And due to that, so many get involved and excited and take the easiest route following some "program" and usually fail.

If you have money you can hire experts and managers. Credit alone can open doors if you have some business knowledge. Without money and credit, you better be really sharp and have a good reputation to stay in the game.