Can I Buy Real Estate With No Money Down?

Can I still buy real estate with no money down? There have been so many changes to how properties are financed that it would appear the no money down real estate is dead.

Yet that is not totally accurate. I think we must remember that you can buy real estate with no money down but it is very hard to buy real estate with no money. You still have other costs such as an appraisal, title insurance, property insurance and a few others.

You can still purchase property with no money down. But you have to learn how to do so in this current market. Let me share with you a few ways that have worked for me in years past.

1) I purchased a 2 flat with no money down. The seller was looking to unload a vacant building that had just been vacated by its tenants. I approached her and said I would purchase her property if I could do so with no money down. I gave her the full asking price, she paid the down payment and I got a new first loan. I did have to pay my own closing costs but I saved the money down.

Principle I learned; ask the seller for help

2) Purchased a 6 flat and got financing from a neighborhood bank. Told them I wanted a loan from them to cover the entire purchase price.. Seller accepted a price that was about 90% of the appraised value of the building so I would close with automatic equity. Bank agreed to give me 100% financing if I would pledge equity I had in other property in lieu of putting down cash. I got property with 100% financing and at the closing got $5000 in credits.

Principle I learned: always ask seller for a break on the price and use equity in other investments to keep your cash

3) Purchased a LLC that own real estate. Instead of refinancing all the properties in the LLC I purchased the LLC from the owners. It was no money down to me and I paid what I owed them from the cash flow of their own investments. I will be able to sell off properties individually with proceeds going to the LLC.

Principle I learned: be creative in acquiring ownership of real estate. You can still purchase with no money down if you are creative in your approach.