By Ozzie Jurock
This article appeared in The Vancouver Sun on December 1, 2001
The two most important things people care about:
How much down?
How much per month?
But there is something even better yet: Nothing down!
The concept seems mythical, impossible. Something for nothing? It's too good to be true. In most cases - in particular of the late night TV 'get rich quick' variety - it is exactly that.
But in real estate investment, sometimes it is possible to beat the myth, to find a property and acquire title with a small or even zero downpayment. But it's not easy...but then nothing good ever is.
But 'nothing' doesn't mean free either. Investment abhors a vacuum; if you aren't putting up money, you're going to be putting in something just as valuable - sweat (mental or otherwise) and smarts.
For example, one strategy has you act as the 'bird dog' working in tandem with the person with the 'gun' - the hard money. You find the deals, he or she pulls the trigger and drops it, and you both share in the resulting profits. Or perhaps you act as the magnet drawing in a number of small but like-minded investors. Together, you pool resources, snag the big plot or project and then split the eventual profits.
And no, it isn't easy either. All good deals are created ... nothing down or all cash. You will not read about the great deal BEFORE it is done ... you'll read about it only after someone else did it. Of course - ahem - you may read about a great deal in my newsletter ahead of time, but that is another story.
So, you are willing, clutching your dream and your 'no cash'? What do you do? You need three things?
You need a market - a buyer's market
You need a strategy- know thyself
You need guts - Your action
Most people get interested in a low down deal in a 'good sellers' market, because they hear that they should run and buy real estate now. But in reality a sellers market rarely sees a no down payment deal - the seller doesn't need to be creative to sell. People usually don't shop in a buyers market because they read all the negative press. Yet, that is the time when they SHOULD be using the low down techniques.
Understand the basic principles of buying real estate without cash, the differences between Agreement for Sale, seller take backs, abatements, buying cash flowing properties only. Read up in the library (everything sold at late night TV is there - free!).
Most people and in particular the ones buying the TV courses end up with know-how and dreams but not enough guts to go out and make the dozen or so offers it takes. You need to find the one Realtor willing to write no down offers, the one willing seller, the one property situation which gets them what they want and the seller what he wants. Most of all you need guts.
Here are some ways to find cash to buy property with no money down. The presumption is that you qualify for a first mortgage, have a job and didn't just have your TV repossessed:
There are dozens of strategies and techniques. All easily and readily found in dozens of books at the library. But you have to do some learning. Surprise, you have to do some work too. But it is possible, to create a good deal with no money down, it is done every day - not by the late night TV crowd, but by average income people who go out learn the concepts and take action. You can do it too.
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