Re: how many ways are there to buy property - Posted by eric-fl
Posted by eric-fl on July 05, 2001 at 08:42:26:
Yes, you are missing a lot. You are attempting to enumerate different generalized buying strategies like tools in a toolbox, such that you can then take those tools and go build something. That’s an okay place to start, but it’s really only half the picture. One has to realize, that, with most tools (and buying strategies), there is more than one use, and more than one way to use it. For instance, a hammer can drive nails into wood, but it can also pull them back out. In a similar vein, the above strategies you mention are often not mutually exclusive, but rather used in conjunction with one another. For instance, it is quite common to purchase a property “subject to” it’s underlying liens, but then resell it on land contract, or a lease/option. Any of the above would be an example would be an example of your #5 category, Owner financing, and also makes use of #1, and either #2 or #4, all within the same deal.
I would submit, rather than to have different “ways” of buying, and thinking of each as being mutually exclusive, that instead, you think of them as the notes in a musical scale. There are only eight notes in a single scale, and each note is distinct, but the number of ways to combine them is infinite.
In addition, there are other strategies that you have not mentioned. For instance, if I want to buy a house ‘subject-to’, (#1 on your list) with “owner financing” (#5 on your list), and the seller wants some down payment consideration, but I do not want to pay cash, I could:
Get the cash from a credit card, or a partner, which is still “nothing down” to me, and is not on your list.
Offer them something else instead of cash for the down payment, such as bonds, or perhaps a small second mortgage I took back on the sale of another house. This is called “substitution of collateral”, and is not on your list.
Offer them services I am uniquely able to perform, instead of cash. This is called “barter” and is not on your list.
So, in conclusion, to answer your question, there are many more than five ways to acquire property for nothing down. Hope this gets the gears turning.