Posted by Doug Pretorius on July 31, 2000 at 08:02:31:
Sometimes they mean no down payment, and sometimes they mean no money at all.
What is more important than getting a deal with no money, is getting a good deal with as little of your own money as possible. That might mean getting a house that’s in good shape (maybe just needs to be cleaned) with 10% or more equity, for just a few hundred dollars to help the owner move.
Doug
Question about no money down? - Posted by Dave
Posted by Dave on July 31, 2000 at 07:04:03:
When people say, “I bought this property with no money down”, does that mean they bought the property with not even a penny out of their pocket including closing cost, or any money to do with any part of the transaction?
Dave
Re: Question about no money down? - Posted by TD
Posted by TD on July 31, 2000 at 09:11:45:
Dave,
It depends on the transaction. I should think, however, that your initial goal shouldn’t be getting a property nothing down, but just to get a property at all.
Once you’ve answered the riddle of “How do I buy this property”, then you’ll be able to move on to more complex issues like buying the same property (or future properties) nothing down, as nothing down is not the be-all and end-all of creative RE transaction.
Your goal should be to buy the property with as little amount of cash out of your pocket as possible, with the greatest amount of yield (read: profit) for doing so. This doesn’t mean you have to tie up your cash, but that you have to find some creative way of thinking outside the box, and getting OPM (that’s other people’s money) to work for you instead.
A good example is “Lonnie Deals”. Check the mobile homes newsgroup on this site, and the various articles written by Lonnie Scruggs on how he profit by using OPM to his advantage. If for some reason you think you might have a problem with doing deal on trailers, then think outside the box and see how you’ll be able to apply the same basic Lonnie strategies to your garden variety residential properties.
It’s all up to you.
TD.