Originally posted by Jon Holdman:
If you have no cash, you do not want to invest in rental real estate. Even if you buy the property with no cash out of pocket, you'll need cash to carry you though down times.
As far as buying with nothing down, you could get the seller to give you 100% financing.
Buy it with a lease option where you pay only a small option fee.
Lease it with a master lease, which gives you possession, but not ownership. You sublease the units and pocket the difference between the rents you charge and the rent you pay.
Get a partner to put in the down payment, closing costs and working capital. You'll unfortunately probably give up almost all your profit to this partner, but a four plex is only going to give you a few hundred a month in profit anyway.
Thanks for responding! Just a couple of questions. 1. How do I approach the owner and convince him/her to give me their property using the options that you gave? Is there something that I can say that would be persuading? What do you think is the best way for me to start in real estate investing in order to get some cash on reserve? Sorry if these questions seem like common sense questions, BUT I honestly want to become an investor and I just have a lot of questions and NO answers.
I appreciate your time! :oops:
