Creative Financing?

[RandyS]

Is investing in Real Estate without money possible? I read a real estate guide
which goes over several creative financing techniques (Double Escrows and Discount Mortgages being the most powerful techniques).

Are there any investors out there that are familiar with these techniques? Has anyone used any creative financing techniques that have been utilized with success? Any advice would be greatly appreciated.

[RyanRE]

@RandyS ~ There are hardly any 0 down programs left. In fact, I think that the Nehemiah down payment assistance program combined with a 97% LTV FHA loan is about all that is left. Keep in mind that you still need to come up with a little cash for closing costs. Also, this won't work in areas where the market has been deemed a "declining market". It is pretty tough to make money in real estate with without any money because few people (lenders) are willing to take on the risk.

Update:

Somebody bumped this thread, so I am going to update. Nehemiah and other down payment assistance programs are no longer allowed with FHA. This became effective in September 2008.

[1EPHB]

Randy, to answer your question........YES.

The best way to do this in my personal opinion is by wholesaling properties to active investors in your area.

[aaron56]

Hi,

I don't think there is a way to invest in real estate without money. You may try the options suggested by Elite properties. I am not sure how successful that idea is.

[Jared]

Randy, to answer your question........YES.

The best way to do this in my personal opinion is by wholesaling properties to active investors in your area.

That is definitely a way to make money in real estate with very little money out of pocket. Join your local REIA and meet investors, find out what they are buying, how they are buying, etc etc etc. Then market for motivated sellers and connect the dots.

[rayshir]

where do i find investors in il. ? any idea i can no longer sell to low score sub prime no longer, i can sell at 70% these houses are ready to move in . any ideas i will pay for referrals

[Jared]

Where are you in IL? Do a search on Illinios real estate investment clubs, plenty of investors there. Put ads on craigslist and in the paper, put up signs around the houses you have for sale, call a title company and let them know what you have for sale, they usually know plenty of investors that are buying. Just a few off the top of my head.

[20something RE Guy]

As everyone has said, find your local REIA and see what is available in your area.

http://www.nationalreia.com/ClubPort...enuoptID=21757

In addition, wholesaling is one of the things that many investors do to gain capital for the first stages of investing. You MAY be able to find a commercial loan source that will allow a 90/10 or a 80/10/10 type of structure to loan you money for a property.

Thankfully, I was blessed in buying a property with 3% down during the RE boom, leveraging it to buy others, which were very good investments. Cash is KING Right now, and if you can get access to it, you're good.

[IntelCapRep]

RandyS-

Investing in real estate without money is possible. And let me expand. When people say that, they typically really mean that it's possible to investing in real estate without traditional financing. This may allow you to have no money in the deal, depending on how you structure the transaction.

If, for instance, you can control a property with Owner Financing, then you technically don't need any money. If you have a buyer lined up that also wants owner financing (or traditional), then it could work like this:

You buy the property with a legal trust. If you can convince the seller to give you a 100% loan, then no money is needed. Assuming this is not possible, that's where your buyer comes in. If your seller wants 20%, then you can get this from your buyer. In that case, you also don't need money because your buyer is funding the down payment. Make sure you start to build your buyer list. It makes it easier to not carry a payment, and as a result, is more profitable.

This is just an example. If you want more information about this, that's what my blog is about.

Most of the posts up there now may be a little more advanced. I am going to start a "new investor" series this week about "how to get started."

Check out the link in my signature to my blog.