For those interested, a combination of mortgages with no “due on sale” clause, mortgage companies loose due diligence, and title insurers willingness to “turn a blind eye” to practices that wouldn’t pass scrutiny now, resulted in tactics like the “second mortgage crank” which not only allowed investors to purchase properties with no money out of pocket but allowed investors to actually walk away from closing with “cash in their pocket”.

@Abigail LincolnWelcome to Bigger Pockets.

Hi Kyle,Welcome to Bigger Pockets!

I’m a fan of harvesting the equity to buy more and more cash flowing properties with zero out of pocket cash for down payments.

I'd also like to plug Bigger Pockets because of what you said, but also because of the education you can get here on the website.  

For some buyers it would end up being less than a 2.5-3% commish, and for others more.The tricky part for the buyer is it would have to come out of their pocket in addition to the down payment, whereas a commission paid by the seller at closing is included in the purchase price and absorbed into their loan (usually unless paying cash obviously) so the buyer only has to make the down payment out of pocket.

Good afternoon @Kobina GrantWelcome to Bigger Pockets!

Quote from @Vivien Martin: Hey everyone,Excited to join bigger pockets.

I came across Bigger Pockets and am thankful for all of you and the podcasts. 

Hey Jack,Welcome to the Bigger Pockets community!