Buying houses with 100% seller financing!

[Samuel Hopkins]

Who in here has experience buying houses with little or no money down?

What techniques/tactics are you using to negotiate the seller down from asking 20% or 25% to 0% or 5% down?..

[Andrew Kiel]

It's really about finding the right seller.  We've purchased many homes with very low (5% or less) down payments with either owner financing or subject to their existing financing.  The two categories that work best right now for us are:

1. Tired landlords - I love this category, we talk about turning the landlord into a lienlord.  There are many landlords that now make more money with our monthly note payment to them as the seller of their home than they made prior to that with rent.  Run the numbers with them and talk it out.  Ask if they would prefer to sell rather than rent, etc.

2. Pre-foreclosures - We love taking over payments on properties that are going into foreclosure. We often are the only buyer even remotely interested in a property in this situation because they are upside down. We recently took over payments on a VA loan at 3.25% with less than 5% down. All we had to do is cover the back payments and give the seller a small amount of money to move. We ended up with a house that had a loan on it that was OVER what it was worth; however I wish I could buy many more just like it. Why? Our payment is $940 per month PITI and we get $1495 per month in - I really don't care what the loan balance is in this case.