Many new real estate investors have a desire to own and build a portfolio of rental properties. Would you like to own rental units? Do you want to have a large portfolio of rental properties? Do you want to have that future stream of income coming in so you will not have to rely on that day job? If so, what do you believe is holding you back from making it happen? Often many real estate investors all over the country tell me it is the lack of money! They just do not have the necessary funds available to acquire rental properties.
There are a variety of ways to find properties that could be a great buy and hold with little or no money down:
1. No Money Down Strategy # 1 – Owner Financing.
Sometimes motivated people will sell their property and finance the sale to the buyer. How can you find deals such as this? Look in the paper or on-line classifieds such as Craigslist and it may just say right in the ad – owner financing. Otherwise you could discuss it with the seller to evaluate how flexible they might be regarding their terms for sale.
2. No Money Down Strategy # 2 – The Property is for sale or for rent.
This shows flexibility with an owner and anytime we see a property for sale and for rent at the same time there is a great possibility they will do owner financing.
3. No Money Down Strategy # 3 – Sandwich Lease Option.
You may be able to find motivated sellers that are willing to do a lease option. If you find another person willing to lease it from you then you could create a sandwich lease option.
4. No Money Down Strategy # 4 – Partner
Find a partner that is also interest in having rental properties and partner up with that person. They can put up the cash and you can find the deals. You can work out an arrangement to split the cash flow from the monthly rental and then distribute and allocate profits when the property is eventually sold. be sure to have a partnership agreement in writing that clearly spells out the responsibilities for all parties involved. The services of a lawyer to assist with the agreement is strongly advised.
5. No Money Down Strategy # 5 – Cash Out Refinance
Find a local bank that is willing to do no seasoned cash out refinance and then find a great deal. You can use hard money, private lending or a partner to get cash to acquire the deal then turn around and refinance the property to get the cash out and pay off your cash source.
6. No Money Down Strategy # 6 – Contact Local Banks and Credit Unions to inquire about REOs
Find a local bank or credit union that wants to get a property off their books. They may be willing to finance the property at 100% if they are motivated enough. I have worked with a few small local banks that have been willing to carry the paper in order to get the property off their books as a non-performing asset.
Make sure with every potential deal that you run the numbers to ensure you have positive cash flow. Just because an owner is willing to finance a real estate deal does not necessarily make it a great deal for you to purchase. Always be sure to do your due diligence and the numbers will tell you if it is a great deal. Good luck with building your real estate portfolio. A real estate empire is built one house at a time. Life life in the moment with no regrets!
Real Estate Investing can be FUN and a Real Adventure! Live your life in the moment with no regrets! Believe and Achieve! – Joe Jurek
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