How to Buy Properties with No Money Down

Do you need a lot of money to do a lease option or lease purchase?  Actually, you don’t.  I can tell you, from experience; when I got started in this business opportunity, I didn’t have a lot of money.  I couldn’t go out there and get a loan.  I really didn’t have money to buy a property, fix it up, renovate it, and rent or sell it, so I really had to understand and learn how to do “no money down” or “very little money down” deals. 

Actually, one of my first deals was a lease option 'no money down' deal.  Just kidding my first 2 deals required $5.00 each!  So it wasn't really a 'no money down' deal, but close enough. One of which I will share here. I saw a seller who was trying to sell her property and she couldn’t.  She was competing against the builder.  She was living in a pretty new neighborhood and was unable to sell her property.  In that same subdivision, there was a builder still building new homes.  Most people would go in that community and which home do you think they would want to buy, from someone who has a three or five year old home, or somebody who is going to custom build the house?  She was really unable to sell her house.

I offered her a lease option.  The terms were agreeable to both she and I, and we made about $6,000 up front from the tenant, about $300 per month in cash flow.  When we sold the property about two and a half years later, we profited about $72,000 from selling it to the tenant. So can you make money now from 'no money down' or 'purchase real estate with no money down?'  YES!  And in this recession with so many houses on the market, 'no money down to buy real estate' is available and plentiful.

Essentially, it was a very profitable deal and it was a situation where I looked at the person who had a problem and I came up with a solution for it.  That solution was a lease option.  It was very profitable and I didn’t have to put in a lot of money.  I didn’t have to get the loan.  I didn’t have to put down a lot of money.  I actually put down $5, that’s right folks, $5 to make the contract binding.  When I gave her that $5 and we signed the contract, she was wondering what that was for.  I jokingly said it was for tomorrow’s lunch, “Thank you for letting me buy your house for $5.” The seller laughed and was really more relaxed since she found me to help her with her house problems. I did not need a hard money lender or hard money investor nor did I have to borrow money from Bank of America. I actually purchased a property 'no money down!' Some critics who lack the facts would call this a scam but I can tell you that most would find this business opportunity a dream come true.

In order to find deals, you must understand that nobody likes to be sold. Don't make your seller feel like they've been ripped off! Don't be a scam artist in your business. Creative negotiating is the key to securing a great lease option deal. There's no need to strip the seller of their dignity by insulting them with a totally one-sided offer. Make the seller feel like they are getting something out of the deal and you'll close more profitable deals faster with less problems. Learn to listen to their situation and don't assume anything, while you are negotiating with the seller, find out just what they need to get rid of the property and go from there. Most sellers in distress don't have a lot of time or options and may offer you a very good deal. Also take in consideration the condition of their property. You cannot pay full price if the house is in need of repairs. A good suggestion would be to only look at houses that are cosmetically damaged, and not structurally damaged. Needing a new roof or new plumbing installed is different than just cleaning up the yard and putting a fresh coat of paint on. Actually, the more cosmetically unpleasing the property is, the better your negotiating leverage is. You'd be surprise the amount of discount you can get from an unpleasant looking property! To ensure the property has no major problems, bring along a handyman with you and have them hand you estimate for getting everything done. Once he does, simply hand that to the seller and show them how much it's going to cost to get this property back into a livable place. If the seller can't or won't fix the problem areas, ask them to add the cost into the final sales price to make it fair for both parties. If you go from a 'salesman' to a 'consultant' you find more deals and less resistance.
 

Also, in doing 'no money down' deals and embracing this lucrative business opportunity my attorney advised me that if you don’t have any money, just put something down.  It could even be $1 to make the contract binding.  That’s what I did.  That’s how I did my first lease option deal, with $5.  You don’t need a lot of money to do these types of strategies, just $5.00.  (smile)  For more examples and insight on how to do lease options and lease purchase profitably, ethically, and legally visit www.GuaranteeProfits.com