Hello Friend,

If this is your first visit to SoSuave, I would advise you to START HERE.

It will be the most efficient use of your time.

And you will learn everything you need to know to become a huge success with women.

Thank you for visiting and have a great day!

Why do people insist that "no money down" is possible when buying real estate?

RazorAzoth

Don Juan
Joined
Jul 13, 2008
Messages
139
Reaction score
1
I'm interested in getting into real estate, however, I really don't want to use the decent amount of money I have in savings for real estate. In my mind, it's just better to have liquid cash on hand in case of an emergency. It eases my mind.

So I read this thread of this forum.

http://www.sosuave.net/forum/showthread.php?t=22304&highlight=guide+wealthy

I was excited to hear about no money down in real estate. So I asked around to quite a few people and they all claim that "no money down" is a joke and not possible. 20% seems to be the minimum.

Why do people make it up and lie about it?
 

Bible_Belt

Master Don Juan
Joined
Jul 27, 2005
Messages
17,021
Reaction score
5,605
Age
48
Location
midwestern cow field 40
Carleton Sheets is a joke. His technique only worked in the early 80's when interest rates were dropping from the 20% range. In the 90's I bought and worked a foreclosure program sold by an infomercial guru named William McCorkle. The Feds put him in jail for selling an investment scheme that was impossible for the average person to make money doing. I actually made money, but only because I put in almost a full-time effort. Mostly it was a learning experience.

Low and zero down payment mortgages were a large part of the recent and ongoing mortgage crisis, so down payment requirements have gone up a lot in the past few years.
 

Alle_Gory

Master Don Juan
Joined
May 25, 2008
Messages
4,202
Reaction score
79
Location
T-Dot
No money down works great... if you can find a buyer right away. (Good luck with that.)

If you don't, congratulations on that piece of land you just bought which you can't pay for.
 

Julius_Seizeher

Master Don Juan
Joined
Nov 25, 2009
Messages
1,237
Reaction score
75
Location
Midwest
"No Money Down" was a big part of the tidal wave that finally crashed in 2008. 20% is going to be standard, but I say the more the better. Get that motherfukker paid for and get some positive cash flow.

It's a great time to be picking up some strategic rental properties. Demand is strong in the rental space, and it's obviously a buyer's market. If you have cash and good credit, you can make some moves now that will pay off down the road.

I'm looking at getting into rental real estate myself. I know a man who owns a prominent property management company in the area, and they have a program for leasing from landlords that I am interested in. I just have to pull the trigger and do it; all I have to do is pick up a good rental property and let the property manager mess with getting tenants and day-to-day stuff. I won't make quite as much as I would renting it myself, but I also won't have the added headache of property management; all I have to do is sign checks.
 

Vice

Master Don Juan
Joined
Oct 23, 2007
Messages
2,010
Reaction score
186
I'm in real estate, and let me tell you that when they say "no money down", they mean none of YOUR money down. The down payment is usually borrowed, usually from a bank, secured against something of value, or equity in another property.

As long as you still make money at the end of each month after expenses, you may have a good "no money down" deal.

I do love how skeptical and non-believing people get about this kind of stuff, it just makes it much easier when there's less competition.
 

Stud

Senior Don Juan
Joined
Mar 20, 2005
Messages
288
Reaction score
5
Every RE deal I do is as close to no money down, or as another poster put it, none of my money down as possible. I just started with zero properties last January and by the end of this year I will have 10 units. My plan for next year is 2 properties / month and I already have it lined up through March.

Not everyone can do it the exact same way I do, but PM me for details on how I make it work if you're interested.
 

BigJimbo

Master Don Juan
Joined
Jan 6, 2010
Messages
988
Reaction score
25
Vice said:
I'm in real estate, and let me tell you that when they say "no money down", they mean none of YOUR money down. The down payment is usually borrowed, usually from a bank, secured against something of value, or equity in another property.

As long as you still make money at the end of each month after expenses, you may have a good "no money down" deal.

I do love how skeptical and non-believing people get about this kind of stuff, it just makes it much easier when there's less competition.
At 20 years of age you can't even buy a beer in America. Yet, you are an expert on finance!
 

RazorAzoth

Don Juan
Joined
Jul 13, 2008
Messages
139
Reaction score
1
Ok, but can you really make any money if you borrow your down payment?

So say you buy a 3 unit building and get a loan for your down payment. After you pay the loan, the mortgage, taxes, maybe you pay a property management company, etc....using the rent from the units, how would there by any cash left?
 

Alle_Gory

Master Don Juan
Joined
May 25, 2008
Messages
4,202
Reaction score
79
Location
T-Dot
RazorAzoth said:
Ok, but can you really make any money if you borrow your down payment?

So say you buy a 3 unit building and get a loan for your down payment. After you pay the loan, the mortgage, taxes, maybe you pay a property management company, etc....using the rent from the units, how would there by any cash left?
Interest is usually tax deductible if for the purpose of producing income.
 

Vice

Master Don Juan
Joined
Oct 23, 2007
Messages
2,010
Reaction score
186
BigJimbo said:
At 20 years of age you can't even buy a beer in America. Yet, you are an expert on finance!
I never made any claim to be an "expert". The "teenage boys" you often refer to in your useless posts become "experts" after getting guidance from wealthy people who have done it before.

So tell me BigJimbo, are you finally acknowledging that I'm 20, or am I still a "teenage boy", like in this earlier post:

BigJimbo said:
15 year olds hyping real estate in 2010? Geez, doesn't surprise me. I hate to be the voice of reason, but NONE of you will ever make a fortune in real estate. Most of you will end up divorced though:up:
Then again, most of your posts are useless. I wish there was a way to block you so I wouldn't have to ask you to shut the f*ck up for a year or two.
 

Vice

Master Don Juan
Joined
Oct 23, 2007
Messages
2,010
Reaction score
186
RazorAzoth said:
Ok, but can you really make any money if you borrow your down payment?

So say you buy a 3 unit building and get a loan for your down payment. After you pay the loan, the mortgage, taxes, maybe you pay a property management company, etc....using the rent from the units, how would there by any cash left?
It really depends on the deal; you've got to do your due diligence. Sometimes after all expenses you will have positive or negative cash flow, but remember that once the down payment loan is paid off, you'll start getting more cash flow if you've done everything right.

I know of some investors that are so well off that they can handle a property having negative cash flow for a while until the down payment is paid off and it goes back in the green, and buy it for selling it down the road for capital gain.

I STRONGLY recommend you finding a local real estate investors group and finding a mentor if you're interested in this highly lucrative business.
 

BigJimbo

Master Don Juan
Joined
Jan 6, 2010
Messages
988
Reaction score
25
Vice said:
I never made any claim to be an "expert". The "teenage boys" you often refer to in your useless posts become "experts" after getting guidance from wealthy people who have done it before.

So tell me BigJimbo, are you finally acknowledging that I'm 20, or am I still a "teenage boy", like in this earlier post:



Then again, most of your posts are useless. I wish there was a way to block you so I wouldn't have to ask you to shut the f*ck up for a year or two.
http://www.youtube.com/watch?v=K853GykeGH0
There you go. He is even Far Eastern! Wow. You should have grown up in the 80's. TV was FILLED with real estate "guides". If you were a bit older you would know this. Go buy a beer...uh a Coke...and enjoy!!!


Real Estate with no money down was always a way to suck in the poor. Usually immigrant types. Notice how EVERYONE in that video speaks accented English. Nobody believes it anymore. Those who are older than 20 found out that NOBODY made it off of those courses!

Where is old Tommy these days? Real Estate? Are you crazy? That was so 1985! Tommy is now pimping social networking sites when he isn't playing poker.
http://www.youtube.com/watch?v=sFphkiIk2CU&feature=related
 

OzyBoy

Master Don Juan
Joined
Oct 4, 2004
Messages
701
Reaction score
6
Location
Sydney
When i buy my own place (prob. next 4-5 years) there is going to be a BIG deposit so the mortgage is fairly small and easy to service. I just think it would be stupid to go in without a deposit (at least here anyway). :p
 

Alle_Gory

Master Don Juan
Joined
May 25, 2008
Messages
4,202
Reaction score
79
Location
T-Dot
Vice said:
I know of some investors that are so well off that they can handle a property having negative cash flow for a while until the down payment is paid off and it goes back in the green, and buy it for selling it down the road for capital gain.
These investors have large cash reserves on hand just for that. If you're small time and just starting out, something like this will bankrupt you.

In real estate, you need money to make money.
 

strong like bull

Senior Don Juan
Joined
Nov 5, 2002
Messages
498
Reaction score
7
if you think there are no ways to buy real estate "no money down," youre right. there arent.

if you think there are ways to buy real estate "no money down," youre right. there are.

see?

for every person who lets fear or lack of knowledge stop them from doing something, another person is raising the bar and accomplishing something by being unconventional and relentless.

which would you rather be?

it doesnt matter how many people ramble on about what "cant" work. people are proving it works right now!

-slb
 

Alle_Gory

Master Don Juan
Joined
May 25, 2008
Messages
4,202
Reaction score
79
Location
T-Dot
strong like bull said:
it doesnt matter how many people ramble on about what "cant" work. people are proving it works right now!

-slb
Please provide evidence from someone credible. Someone who isn't pushing a 'how to flip real estate' seminar.
 

OzyBoy

Master Don Juan
Joined
Oct 4, 2004
Messages
701
Reaction score
6
Location
Sydney
They need people to get in without a deposit to keep the ponzi scheme - sorry, i mean real estate industry going. :D :up:
 

Stud

Senior Don Juan
Joined
Mar 20, 2005
Messages
288
Reaction score
5
I do not do any deals using this strategy, but do some research on "subject to" deals.

My primitive understanding indicates this is where the "no money down" deals are.
 
Top