No Money Down No Credit Needed
July 26, 2010 by Matt
Filed under "How to", Featured, Recent Posts
In today’s market there is more opportunity than we can take advantage of. So much so that I look only for deals in which I need no money down or credit. If I come across any opportunity in which I’m required to use my own money, I say very politely, “No thank you.” With such an unprecedented real estate market where no money down opportunities are abundant, why risk it?
I’ve become quite adept at investing to the point I can virtually eliminate the risk from any deal so it’s not that I’m afraid to use my money, I simply don’t feel I need to. That’s the mindset you’ll want to adopt.
Regarding credit, I have never used my credit in a real estate transaction. That puzzles many, but once you know what you’re doing, that’s the easiest part to eliminate from real estate investing. I have no idea what my credit score even is. The people from which I buy homes from care more about me solving their “problem” than they do my credit score.
Many feel that my opportunities are limited since I choose to never use my own cash or credit. Actually, quite the contrary is so. By sticking to a “No Money Down No Credit” mindset and principles, I am focused; And with focus comes results. Being focused attracts more opportunity than I can handle.
Before an abundance of no money down deals start coming your way, you’ll need to do a few things…
1) Get educated and fill up your proverbial toolbox with several acquisition strategies. For a strong no money down career, you will need to get very familiar with terms like option, subject-to, seller carry back, lease, sublease and wrap around mortgage.
2) Become an expert at finding your deals through one source such as probate files at the court house, tax deed auctions through the county, divorce attorneys, roadside signs, the Internet, etc… The key to no money down investing is to look for your deals in places where you’ll find people that need to sell as opposed to people that want to sell.
3) Become known in your local community as the guy or girl that buys and sells houses. Although I do a lot of investing out of state, I feel success can come your way much easier with no money down strategies given the advantages of face-to-face negotiating and rapport building that are not always available via the phone or Internet.
4) Get comfortable with and competent at discussing your real estate transactions with potential money partners (private money). As fun as it is to acquire real estate with no money down, the reality is a lot of real estate business does take money. The great news is it doesn’t have to be your money. For a crash course on how to break the ice with friends, family, associates and every day people, I’ve compiled a short e-Book with the three most powerful questions you can ask when looking for money partners. You can pick up a copy of the book here at 3MRQ.
Take the above four steps and you’ll start to stumble upon good deals, and every once in a while you’ll find a great one. My secret for no money down investing has been to go after the small deals and let the big deals happen when they happen, and they will happen. Get out of the bleachers and stay on the court, play the game and the deals will come.
