Episode 72: No Money Down Real Estate Investing

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No Money Down Real Estate Investing

You will see a lot of books, seminars and online courses about “No Money Down” real estate investing.  I doubt that there is such a thing as a “no money down” deal.  There is always some type of cost involved.  From marketing and advertising to closing cost and fees there is a cost in nearly EVERY real estate transaction.

Low Money Down

This type of investing I have heard of and have done.  But the deals are rare and you need to have the skill and knowledge to know one when you see it. But this is not a “No Money Down Deal”.

Other Peoples Money

This is common and uses seller financing or other techniques to reduce the amount on money required upfront.  These deals are common and require a skilled buyer to structure the deal in a manner that works for both the buyer and the seller.  Again, this is not a “No Money Down” deal, it requires some capital upfront. I will talk more about this type of investing in the next episode.

What about Wholesaling?

Although wholesaling requires typically less money upfront, it does require and investment in marketing and a deposit.  Most of the active wholesalers spend thousands per month marketing for sellers and although they make the money back, this can be a little challenging in the beginning with no income or experience.

 

So I think the truly “No Money Down” deal is a unicorn… It does not exist.

 

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