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Zero Down Real Estate Investing
Zero down? Why would a seller want to walk away from closing with nothing? Well, they wouldn't, and that brings up the most important point about real estate investing with no downpayment: The seller almost always needs cash at closing, but it doesn't have to be YOUR cash. A Zero Down Example I'm selling a small rental property right now, with payments of $400/month. The buyer has a good credit report, and the $5,000 downpayment covers closing costs and even a foreclosure, if necessary. So at this point, I don't care where he gets the downpayment. A $6000 cash advance on a low-interest credit card for example, would cost him about $135 per month, and give him enough for the downpayment and his closing costs. In this case, with rent around $600 per month, he would be okay. In some cases, however, that extra $135 might cause negative cash-flow. So be sure that however you do it, the numbers work. By the way, I would have set the payments at $350, if he had asked, because it's the price and the interest rate that are important to me. Other Zero Downpayment Methods While there are sellers (like myself) that are able to offer terms and low downpayments, usually you have to find a way to get at least 70% of the price to them in cash. Think in terms of how to get a primary loan, then how to raise the money for the remainder. A couple examples follow. Some banks still do "no doc" loans, meaning they don't require verification of income, source of downpayment, etc. They generally loan only 70% to 80% of the property value, but if the seller is willing to take a second mortgage from you for the other 20% to 30%, you are in with no money down. The seller gets 70% or 80% in cash, plus payments for years to come. You'll have two payments, of course, so be sure the numbers work. You can borrow against your home or other property to come up with downpayment money. If you borrow for a "vacation," and leave whatever you don't spend in your checking account for a while, you can use it without violating bankers rules about borrowing for a downpayment. Even if you live in a small town, there are usually a few "note buyers." These are investors that buy land contracts, mortgage loans and other "notes" at a discount. If a seller takes a purchase money mortgage from you for $100,000, for example, a note buyer might pay him $85,000 for it. So how does that help you or him? An example: A seller prices his property at $195,000, and expects to sell it for $180,000. You offer $205,000 in the form of a mortgage for $160,000, and another for $50,000. You have arranged for the sale of the first mortgage at closing for $136,000 to a note buyer. The seller gets that cash now, plus payments from you on the second loan for $50,000. Notice that this adds up to $186,000, which is more than he expected to get out of the deal. These are just some of the ways you can buy with zero down. Real estate investing is about making the deal work for all parties. Find a way to get what you want, and get the seller what he wants. That is more important than having big cash on hand. Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
MORE RESOURCES: Do Seattle homebuyers have commitment issues? The Seattle Times What to do if your office landlord is in trouble The San Francisco Standard Real Estate Transfers: Oct. 17, 2025 The Bedford Citizen How a Real Estate Investor Used A1031 Exchange to Avoid Capital Gains businessinsider.com Cape Cod House Hunt: Eastham home on bluff for $239K Cape Cod Times Take a look at the off-season’s priciest real estate sales in Palm Beach Palm Beach Daily News East Cobb residential real estate sales, Oct. 6-10, 2025 East Cobb News Why Commute Times Are Increasing in Corpus Christi Texas Real Estate Research Center A New Era of Fair, Transparent Real Estate Representation - Agent Arena Soft Launches in South Florida PR Newswire Real Estate Quarterly: Building With The Right Plan Los Angeles Business Journal Florida Trend Real Estate Florida Trend Sunrise Realty Trust, Inc. Commits $25.6 Million to TCG Real Estate's CollectionSuites Development in Florida Quiver Quantitative Sleek executive ranch newly custom built in Swansea sold for over $1M: Weekly home sales Fall River Herald News Accused real estate broker comes home to enter plea on $11M embezzlement and theft charges The Patriot Ledger Floor Space: What You Can Buy for About $550,000 Flathead Beacon 5 quick questions: Prism AI – purpose-built AI for commercial real estate Commercial Observer Real estate pros are anticipating a busy winter season in Palm Beach. Here's why. Palm Beach Daily News JV picks up 439K-sf San Antonio shopping center Texas Real Estate Research Center MetroNational acquires 309K sf of CityCentre retail space Texas Real Estate Research Center Howard Hanna expands into Manhattan with new acquisition Long Island Business News John R. Wood Christie’s International Real Estate Leadership Role Updates Coastal Breeze News September home sales up 5% as real estate association expects strong end to the year constructconnect.com Where Opus development chief sees opportunity amid building slowdown The Business Journals Three life-changing real estate deals born at Harvard The Real Deal Why Marketing Still Starts — and Ends — with the Customer Boston Real Estate Times DOJ accuses real estate executives of fraud in homeless funding Los Angeles Times Florida Real Estate: High-Demand Rentals Offer $2,500+ Income for Investors Norada Real Estate Investments Property owners annexing 284 acres into Delaware from townships The Columbus Dispatch Backed up next to the 12th tee, this Norwalk home offers modern living options The Des Moines Register Why One of Las Vegas’s Top Real Estate Agents Recommends Selling Your Home in an Off-Market Deal Mansion Global New Albany Co. seeking to annex 101 acres along U.S. Route 62 into New Albany The Columbus Dispatch A $4.2 million estate — a ‘piece of Denver’s past’ — has hit market in Washington Park neighborhood The Denver Post Central Mass. real estate transfers, Sunday, Oct. 19 Worcester Telegram Fidelity International closes €710m real estate logistics climate impact fund Institutional Real Estate, Inc. CoinLander Launches RWA Platform, Unlocking Stable Returns from Tokenized Real Estate Mortgages PR Newswire Get social media advice from the best in the business: The Download Inman Real Estate News JPMorgan upgrades Apollo Commercial Real Estate Finance stock rating on loan resolution progress Investing.com Marquis Who's Who Honors Dominic L. Scoccola for Expertise in Real Estate and Title Industries 24-7 Press Release Newswire Sleek custom built contemporary in Berkley sells for almost $1M: Weekly home sales Taunton Daily Gazette Fed Interest Rate Forecast Q4 2025: Target Range Could Hit 3.50%–3.75% Norada Real Estate Investments Take a look at this spacious home next to a Legacy Golf Club in Norwalk The Des Moines Register Former NFL Star Doug Martin Dies in Police Custody After Alleged Break-In at Oakland Home Realtor.com Mortgage Rates Today: 30-Year Fixed Refinance Rate Goes Down to 6.78% Norada Real Estate Investments Salt Shed owners eye adjacent property for big expansion Crain's Chicago Business Sequoia Financial Advisors LLC Raises Holdings in Alexandria Real Estate Equities, Inc. $ARE MarketBeat What’s becoming of Chip Norton’s Worcester properties? Worcester Business Journal 2 LA County real estate developers charged in multimillion-dollar fraud cases involving funds earmarked for homeless housing ABC7 Los Angeles Continuous professional development is essential for elevating success Inman Real Estate News AI Is Powering a Desert Construction Boom—and Investors Are Snapping Up Thousands of Acres Realtor.com Seattle Tech Workers Are Fueling a Real-Estate Rush in the Cascade Mountains The Wall Street Journal Where does Angelina Jolie Live: Exploring the Star’s International Real Estate Portfolio AD Middle East Report: Down Payment Level Held Steady During Q3 Weekly Real Estate News Real estate agent Terrie Donovan aims to become Charlotte’s first GOP mayor since Pat McCrory WSOC TV Nonprofit EAH Acquires Two Lancaster Rentals Los Angeles Business Journal On the job with Bryanna Zigmund, licensed realtor Morning Journal Report: More Homes Selling at Discounted Prices Weekly Real Estate News Top 10 property sales in Marion County recorded Aug. 18-24, 2025 Ocala StarBanner |
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