Florida Real Estate

Why deal with MEL KiM Income properties?

Mel Kim Income Properties is one of the best Florida real state agencies because they had been working in the field of cash flow properties for the last 35 years and they really know how to provide the best opportunities for their investors.

All their properties are new or completely renovated to the minor details, this means that you will not pay a penny to fix or replace anything. This is a great addition because most of the properties in the cash flow investing market need some renovation before you can make profit renting it.

Another point that holds a lot from entering the cash flow properties market is that they think how they can get a qualified Tenant to rent the house so they can start generating profit. Mel Kim Income Properties will offer you the house already rented by a qualified Tenant so you will not do any kind of marketing or placing ads in anywhere and they will also guarantee you a one year renting for most of the properties they are selling.

If you are willing to invest in Florida real estate market then Buy Income is your best choice because you will generate profit since the first day you own the property. And with the amount of money they rent the house for, you will be able to get all what you paid within 5 or 6 years maximum for most of the properties they have in their inventory.

Mel Kim Income Properties will also cover the house warranty for the first year, this guarantee that you will not own the home and the very first day you will hear from the tenant that the floor is cracking or the water pipes are leaking.

Cash flow properties is all about making profit so, when you get a house that is completely new or completely renovated and generating profit from day one then you have got yourself a real deal. And if you do not have the time to run the property and deal with everything, Mel Kim Income Properties can manage all your cash flowing properties with a team of experts who knows how to deal with tenants and maintenance contractors as well.

It is a whole package that has nothing missing. Do not spend much time thinking about whether it works for you or not. Mel Kim Income Properties made it work for everyone as they will get you the property which is already rented and the tenant is guaranteed to pay for a full year. Cash flow investing could not be better than this

Florida Real Estate

Ways to Invest In Real Estate Beyond Just Buying a House

Real Estate: Real Money And Real Problems
ALTERNATIVE INVESTING, REAL ESTATE, REITS, ETFS, INVESTING, MORTGAGES, HOUSING
CNBC.com | 31 Aug 2009

But the market was strong, and soon it seemed they could sell the house for $899,000, so they decided on more improvements.

“By the time we got to market, people were going crazy,” he says. “Some said we could get $1.2 million.”

In the summer of 2006, the house sold for $920,000—more than they initially expected, but at little or no profit.

“If we had stuck to the original plan, the thing would have sold in a week and we would have ended up in the same or a better financial position,” Isaksen says. “After we backed out the carrying costs, it was within dollars of where we originally planned to be.”

The lesson, he says: “Plan your work and work your plan.”

Real estate is a common means of diversifying a portfolio and hedging against inflation.

“As inflation occurs the value of your property will go up,” says Todd Huettner, president of Huettner Capital, a Denver-based real estate financing brokerage. “Then there’s the financing. You’re borrowing dollars when they’re cheap today and paying them back when they’re worth less.”

But depending on how you get into real estate, it can be a time consuming, complex and (as the recent bust proves) risky proposition.

There are many ways to invest—in properties or funds; in commercial, residential or industrial; in single-family homes or condos. Each strategy has advantages and disadvantages, but experts say there are a few principles that hold true across the board.

First, do your homework. “Don’t feel obligated to do the deal if you don’t have all the information you need,” advises Gregor Watson, managing partner at McKinley Capital Partners, a $30-million dollar real estate fund in Florida. “Just because it’s free doesn’t mean it’s a good deal.”

That means examining market dynamics for the segment you’re considering, knowing how financing works, understanding all the aspects of the deal. “If it’s outside your area of expertise, hire professionals,” Watson says.

Be skeptical of deals that seem too good to be true.

“Be careful of the real estate agents—they’re out to make a sale,” says Marty Sumichrast, an entrepreneur, venture capitalist and real estate investor.

And finally, expect things to go wrong. “What if you had a vacancy and needed a new roof and a water heater, all in 30 days?” Huettner asks. “If you see all the things that could go wrong, you’ll usually end up being okay.”

With those principles in mind, you need to figure out how you want to invest. That choice will depend on your personal and financial goals and predilections.

REITS And ETFS

George Van Dyke, an independent financial consultant in Towson, Maryland, advises his clients to use real estate investment trusts, EITS, and exchange-traded funds, ETFs, to diversify into real estate. The vehicles are fast and easy ways to get into different properties, geographical areas and real estate classes.

“With publicly traded securities you can remain liquid,” he says. “If you can’t tolerate the risk, you’re not forced to go and sell a physical piece of real estate, which could take months.”

It’s also relatively simple to limit risk by using a trailing stop loss order, which automatically sells an asset if it drops below a certain predetermined price.

“If the real estate investments we utilize go up for an extended period of time, it is possible to lock in years of gains,” Van Dyke says.

With REITs and ETFs, you don’t have any of the hassles or liabilities that come with being a landlord or a property owner. But some investors are looking to be more hands-on. And, Van Dyke notes, you may be missing out on some money.

“The returns that you would get on a physical piece of real estate would exceed what you would get on a publicly traded security,” he says.

Residential: Single Family

For many, the next step up is investing directly in a property.

“Residential is the easiest and lowest risk,” Huettner says. “You don’t have to have a few million bucks to get involved, and you can get a 20-year fixed-rate loan at a really low rate, putting down 20 or 25 percent.”

The simplest approach is to buy a house or apartment unit to rent, especially since most of us are familiar with home ownership.

“If you’re starting in single family, buy in the neighborhood you’re working in,” Isaksen suggests. “You’ll know about the area. You’ll be able to get there easily.”

When looking for properties, consider how the home fits into the neighborhood and the current housing market. If a property is dirt cheap, ask yourself why.

“Is it because it’s a three-story townhome in suburbia?” Watson says. “Don’t just look at price. Make sure the product matches the market.”

Isaksen advises making sure you’re in the middle tier of the neighborhood in terms of size and price.

“You don’t want to be the highest end home on the block,” he says. “You don’t want to have to lead the market.”

Keep in mind that single-family homes require hands-on management, and so are difficult to run from afar. Also, make sure you’re okay with being a landlord.

“Some people aren’t cut out for it,” Huettner says. “They don’t feel comfortable telling someone they’re behind on their rent.”

Another potential downside: cash flow is all or nothing. If you lose your tenant, it drops to zero.

Residential: Multifamily

On the other hand, if you have 20 tenants and one moves out, you still have 19 others paying the rent, Isaksen says.

Other pluses of investing in this category: your rentals are all in one location, so there is one lawn to mow and one roof to repair; if the property is large enough—over 80 or so units—you can hire a professional manager.

“Then you’re not in the landlording business—you’re in the property ownership business,” Isaksen says. “You’re not getting called at two in the morning to fix that toilet.”

On the downside multifamily properties are often more expensive than single family homes, and the financing is different.

For one, loans are based on debt service ratios—an assessment of the cash flow rather than an appraisal of the resale value. There are more financing options for loans over $1 million, Huettner says.

Local bank loans will typically be portfolio loans, and be 10- to 15-year fixed rate loans, which means high payments, or 20-year loans with balloon payments.

Commercial

“A lot of the residential investments on the market are foreclosures,” says Tim Grizzle, author of Creating Wealth in a Turbulent Economy, a CPA and a commercial real estate broker, registered investment advisor. “I just don’t want that karma.”

Another reason he invests in moderate-sized commercial properties is that the rents are generally higher than with residential properties.

Lending for commercial properties is based on the income the properties produce.

“Generally the income the property produces needs to be 1 1/4 times the debt service,” Grizzle says. Financing can be difficult to obtain these days, but private investor groups are a common option. “Basically you call everybody you know and ask if they know anyone who has money to invest.”

When seeking out potential properties, research local market dynamics—the commercial real estate saw is, “Retail follows rooftops.”

Shari B. Olefson, author of “Foreclosure Nation” and an attorney with Florida-based law firm Fowler White Boggs, suggests strip shopping centers as an investment.

Though retailers are not doing well currently, grocery stores, discount stories and drugstores are.

“Look for a local strip venture that you’re familiar with and has local businesses that people use and need,” she says. Also be aware that they need to be renovated every five to ten years.

But no matter what you’re considering, don’t be afraid to walk—for any reason.

“The best investment decisions are usually the properties that you turn away,” Huettner says. “There will always be other great deal.”

© 2009 CNBC.com http://www.cnbc.com/id/32329465/

Florida Real Estate

Credit Investors

If you wish to take a step into property investing then let me assure you that We Have done most of the hard work for you already. 

We are a large group of professionals that we go out there and use our money and knowledge and take a risk to produce for you a finish product that will produce more the 20-30% of positive cash flow with qualify tenants and management in place.

We offer investment properties buyers and investors the opportunity to maximize their investment dollars while minimizing the hassles that are often associated with investing in real estate.

We do this by specializing in selling “Turn-Key” Investment Properties.

Our Properties come fully rehabbed and rented to qualified Tenants. Our team of proven service professionals are with you every step of the way after the sale to ensure your investment is a successful one.

 

Please Click HERE for our Contact Page >>>>

 

Or

melkimrealty@gmail.com

Florida Real Estate

Today's State of Florida is an unbelievable Buyer’s market

About The Opportunity

Positive Cash Flow Returns Through Property Investment

Today’s State of Florida is an unbelievable Buyer’s market, particularly for Florida Real Estate. Even here in the the Sunny state, where the market has its most down cycles, which provide important opportunities for those who are prepared to take advantage of them. Right now, it is a bona-fide Buyer’s market. For the first time in years, we are able to provide our investor friends with Fully Renovated, Rented, Cash Flowing single-family and multi-family residences at below market prices, a completely turn-key investment. Mel Kim Investment Real Estate’ investor-friendly program allows you to build a strong portfolio of properties that can provide you with the following:

Check Out our Income Properties HERE <<

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· Immediate positive cash flow through the “Mel Kim Investment Real Estate” program, meaning you will have a positive cash flow in your very first month of ownership.

· Diversification from your other financial investments.

· Built-in Instant Equity in each property {20-35%}, which can be realized, along with future appreciation, when the properties are eventually sold.

· Newly remodeled properties that are in excellent rental condition.

· Tenants that have been screened and have paid rent and security deposit, which will be assigned to you at closing.

· Guaranteed tenant rents for the first 3 full months. Plus 1 year Home Warranty. Plus a ‘clean’ bill of health from a licensed Home Inspector. And more…

 

Check Out our Income Properties HERE <<

This program is not about speculating on real estate in the remote areas of the South and central Florida including Miami, Ft Lauderdale, Orlando, Tampa Florida.

We understand that your time is extremely valuable, and that you may not have a ready network of experts to help with identifying and negotiating deals, financing, title work, making repairs/improvements, securing tenants, and handling tenant communication/administration.

We also understand that if you can utilize your financial status and credit score to buy and control your properties, rather than spending lots of your cash to do so, it is preferable and allows you to build a larger portfolio. The principals of Mel Kim Investment Properties — MEL, Kim and Joseph Silberman — possess the experience, know-how, and network necessary to deliver these Cash Flow Properties to you. They have bought/sold over $100 Million of Western NY and Florida real estate, they currently own over $10 Million of residential properties, and they control over $10 Million of Commercial and Residential Development projects under sister companies (see Mel Kim Investment Properties website for summary).

 Credit Score 700 and UP is all you Need | NO MONEY DOWN { optional }

Sign Up Right Now to get a FREE “Mel Kim Investment Real Estate Qualified Properties” INSTANTLY!

In this package you will discover how you can build from positive Real Estate Investment roughly $448,000 to $1,400,000 in instant equity and keep tens of thousands of dollars in your pocket.

You will find an Florida Market Report and learn why Florida is one of the best cities in the nation to buy real estate RIGHT NOW. We will also give you a step by step breakdown of a sample transaction in detail! We are confident that after you read this package you will fully understand our program and the difference between a traditional real estate investment and the Mel Kim Investment Real Estate Investor model.

The Bad News is — we have limited inventory and we are only signing up a handful of investors, so make sure you are one of them…

---

Our Other Ads and Opportunities in Details

Our properties gives you the power to be financially comfortable with or without money down out of your pocket.

This translates into 5 to 6 figure profits for each transaction.
The homes selected for this program are new or in excellent condition, in nice neighborhoods and have a qualify tenants with a lease in place. and with a management team to take care of the home on your behalf.
Section 8 Tenant on a New One Year Lease @ $1350 a Month- Massive Cash Flow on this One!!
Appraised value $165,000
Price and loan amount $105,000 (instant equity $60,000)
Cash in your pocket at closing $5250
Money out of your pocket $0.00
Stories: 1.5
Beds: 5 Baths: 2 Sq. Ft.: 1,800  

Your benefits as a Credit investor…
* No money out of your pocket. NEVER (not for down payment and not for closing cost)
* instant equity of 20% to 45% ($25000 to $80,000)
* instant cash at closing for you to spend freely ($5,000 to $30,000)
* Huge 5 to 6 figure profits for each transaction
* Positive income every month
* All tax benefits
* 100% of all the Maintenance, Tax, Management and Mortgage payment are cover from the rent.
* 100% of all Net Operating Income
* 100% of the future appreciation
* 100% of Principal Paydown
* Investment fully secured by property
* Great management team to deal with tenants and maintenance
* One Year Home Warranty.
* One Year management FREE.
The loan to the Credit investor for that purchase is a full doc. Minimum credit scores are presently 700+.
For more information please e-mail to melkimrealty@gmail.com  address with your name, phone number and your credit score

akron/canton, appleton, daytona, fl, delaware, dubuque, eastern, fort myers, ft lauderdale, halifax, hickory, jacksonville, keys, killeen, laredo, lexington, lincoln, lynchburg, mankato, miami, monroe, montana, new hampshire, orlando, quebec city, rochester, rochester, san marcos, st. augustine, tallahassee, tampa, toledo, treasure coast, wausau, west palm beach, winston salem

Florida Real Estate

Get Positive Cash Flow On Florida Property Investment

We are offering an incredible opportunity to invest in Florida Including Miami, Fort Lauderdale, Tampa, St Pete, and Orlando real estate, almost guaranteeing high occupancy rates. There are a few units left in sevral areas and a fairly priced at  $55-$100K higher.

Check Out our Income Properties HERE <<

 

• Passive investment opportunity
• Property management in place
• Positive cash flow of $200-500 a month
• Special financing with our preferred lender as one of borrower programs not offered through any retail or on the street channel allowing only 10% to 20% down as a second home loan, One discount point towards permanent buy down, no PMI, and all closing costs paid!! Unbelievable and available for a limited time only!!
• Developer is offering special incentive for using existing management company.
• Special Lloyd’s of London Insurance coverage for any natural disaster.
• FREE Self-Directed IRA offered by Guidant Financial Group with purchase in this project

 By Mel Kim, Founder of Mel Kim Realty Investments 

 This is the perfect choice for passive real estate investors. Our program gives you the power to be “the bank”. This translates into 5 to 6 figure profits for each transaction with profit of 21.5 to 24.3% (see sample projection).

 The homes selected for this program are in good to excellent condition, in nice neighborhoods and do not require rehab.

 Most transactions are in the $75,000 to $500,000 range. 

 

 

 Buyers that are not yet credit ready to be approved for standard home purchase loans or just want to avoid the “red tape” associated with the regular mortgage process, can have a “Credit Partner” (credit investor) purchase the property for them. 

 

 The investor loan to the Credit Partner for that purchase can be full doc or stated. Minimum credit scores are presently 680. The Credit Partners need some verifiable liquid or semi-liquid assets for “reserves”  (bank deposits, stocks, bonds, mutual funds, retirement accounts, cash value of insurance or other). These funds only need to be verifiable and are not actually used. 

 Each property is resold by the Credit Partner using a Lease Purchase Agreement (or alternative), with a typically 3 year term. Closing costs are paid by the Buyers or a participating third party independent real estate investor (not the Credit Partner). Since you are not paying any closing costs, your cash-on-cash rate of return on investment skyrockets.

The buyer pays the mortgage payments for the Credit Partner’s investor loan (principal, interest, insurance, taxes and all other costs).

The Credit Partners receive an estimated 3.5% as an annual compensation/profit for the use of their credit plus an instant 11% cash/equity position (profit) at closing.

 “Credit Partners” if classified by mortgage companies as  “seasoned investors” can often participate in up to 10 or more transactions per year. 

 Closing costs are usually paid by a 3% seller contribution. Any amount exceeding the 3% is being immediately and fully reimbursed after closing.

 This provides a rare opportunity to invest into real estate. Magix Professional Network Members and other registered real estate investors will have both sellers and buyers ready for the transaction and arrange for the financing and Lease Purchase transaction. An experienced third party mortgage payment processing company functions as a collection and bill paying service for the applicant/buyer and Credit Partner.Your benefits as a Credit Partner… 

  

   • Huge 5 to 6 figure profits for each transaction

• Investment fully secured by property

• Applicant/end-buyer pays 10% cash down from their own funds

• Credit Partner receives all stated amounts net of all costs and fees

• Third Party payment processing for your protection

• Tax benefits (all or shared) 

• No management costs 

• 100% of all the Maintenance and Repair costs are paid by the end-buyer/lessee 

 

Depending on the Credit Partner’s particular credit an investor loan may be obtained for 80% or 90% of the purchase price.

 Credit Partners qualifying for 90% financing will realize a zero cash investment (since the Buyer contributes a 10% cash down payment) receiving a minimum of 11% in cash immediately after closing. The obvious benefit here is the immediate upfront cash profit.

 With a qualification for 80%, the Credit Partners need to pay 10% cash down (which will be combined with 10% from the end-buyer for a total 20% down payment). With the upfront compensation the Credit Partners realize a net zero cost investment (since the 10% down payment is fully recovered by payments to the Credit Partners after closing), receive a minimum of 1% cash at closing plus receive an immediate 10% equity position in the property. The benefit is an almost 13% higher profit over three years compared to the 90% financing.

 The following sample projections are based on a $300,000 property value.

1.

A typical transaction with 90% financing has the following profit points:

 Upfront compensation (at closing) 11% of 90% = $29,700

Annual additional compensation 3.5% (of 90%) = $ 9,450 with $787.50 monthly payments. Over 3 years that amounts to $28,350 (10.5%)

 Total = $58,050 = 193.5% based on 10% Credit Partner down payment over three years (21.5% based on 90% – 80% financing plus 10% down)

 2.

A typical transaction with 80% financing has the following profit points:

 Upfront compensation (at closing) 11% of 90% = $29,700 (1% compensation is cash, 10% is the equity interest which will be cashed out after 3 years)

 Annual additional compensation 3.5% (of 80%) = $ 8,400 with $700 monthly payments. Over 3 years that amounts to = $25,200 (10.5%)

Interest on 10% Credit Partner down payment (estimated at 12% per year) equals 1.2% of the transaction = $3,600 with $300 monthly payments, over 3 years 3.6% = $10,800

 Total = $65,700 = 219% based on 10% Credit Partner down payment over three years (24.3% based on 80% financing plus 10% down)

Looking for Investment Opportunities? We have Income Properties …

Excellent Positive Cash Flow Income Property in Florida, Connecticut, New York and beyond

We offer Positive Property Management:

Our properties gives you the power to be financially comfortable with NO money out of your pocket. This translates into 5 to 6 figure profits for each transaction.
The homes selected for this program are new or in excellent condition, in nice neighborhoods and have a qualify tenants with a lease in place. and with a management team to take care of the home on your behalf.
Section 8 Tenant on a New One Year Lease @ $1350 a Month- Massive Cash Flow on this One!!
Appraised value $165,000
Price and loan amount $105,000 (instant equity $60,000)
Cash in your pocket at closing $5250
Money out of your pocket $0.00
Stories: 1.5
Beds: 5 Baths: 2 Sq. Ft.: 1,800

 

 

 Your benefits as a Credit investor…
* No money out of your pocket. NEVER (not for down payment and not for closing cost)
* instant equity of 25% to 45% ($25000 to $80,000)
* instant cash at closing for you to spend freely ($5,000 to $30,000)
* Huge 5 to 6 figure profits for each transaction
* Positive income every month
* All tax benefits
* 100% of all the Maintenance, Tax, Management and Mortgage payment are cover from the rent.
* 100% of all Net Operating Income
* 100% of the future appreciation
* 100% of Principal Paydown
* Investment fully secured by property
* Great management team to deal with tenants and maintenance
* One Year Home Warranty.
* One Year management FREE.
The loan to the Credit investor for that purchase is a full doc. Minimum credit scores are presently 700+.
For more information please e-mail to above address with your name, phone number and your credit score.

Real estate with zero down? Why would a seller walk away from closing with nothing? They wouldn’t, and that brings an important point about real estate investing with no downpayment: The seller almost always needs to get cash at closing, but it doesn’t have to be YOUR cash.

Zero Down Example

I’m selling a rental property right now, with payments of $400/month. The buyer has good credit, and his $5,000 downpayment covers closing costs and even a foreclosure, if necessary. At this point, I don’t care where he gets the downpayment. A $6000 cash advance on a credit card for example, would cost him about $135 per month, and provide enough for the downpayment and his closing costs.

In this case, with rent around $600 per month, he’d be okay. In many cases, however, the extra $135 would cause negative cash-flow. However you do it, just be sure the numbers work. By the way, I would have accepted payments of $350, if he had asked, because it’s the price and the interest rate that are important to me.

More Zero Downpayment Methods

While some sellers (like myself) are able to offer terms and low downpayments, most need or want at least 70% of the price in cash. This means you need to think in terms of how to get a primary loan, then how to raise the money for the remainder. Some examples follow.

Some banks do “no doc” loans, meaning they don’t require verification of your income, source of downpayment, etc. They’ll generally loan 70% to 80% of the property value, so if the seller is willing to take a second mortgage from you for the other 20% to 30%, you’re in with no money down. The seller gets 70% or 80% now in cash, plus payments for years to come. You’ll have two payments, of course, so be sure that the numbers work.

You can borrow against your home or other property you own to come up with downpayment money. You can borrow from friends and family. You can borrow against your car if you owe nothing on it. 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.

There are usually a few “note buyers” around, even in smaller towns. These investors buy land contracts, mortgage loans and other “notes” at a discount. Say a seller takes a purchase money mortgage from you for $100,000, for example. A note buyer might pay him $85,000 for it. How does that help you or him?

An example: A seller prices his property at $194,000, but expects to sell it for about $180,000. You offer $205,000 (making sure you’ll still get cash flow) in the form of a mortgage for $160,000, and another for

$50,000. You arrange for the sale of the first mortgage at closing for $136,000 to a note buyer. The seller gets $136,000 cash, plus payments from you on the second loan for $50,000. Notice this adds up to $186,000, which is more than he expected to get out of the deal.  

These are some of the ways you can buy with zero down. Real estate investing is about making a deal work for all parties. Find ways to get what you want, and get the seller what he wants. That’s more important than having large amounts of cash on hand.

If you are investing in single family homes, and want to do so with zero down, you may also want to read the article on

Florida Real Estate

Positive Cashflow Returns Through Property Investment

Looking for Investment Opportunities? We have Income Properties …

Excellent Positive Cash Flow Income Property in Florida, Connecticut, New York and beyond

We offer Positive Property Management:

Our properties gives you the power to be financially comfortable with NO money out of your pocket. This translates into 5 to 6 figure profits for each transaction.
The homes selected for this program are new or in excellent condition, in nice neighborhoods and have a qualify tenants with a lease in place. and with a management team to take care of the home on your behalf.
Section 8 Tenant on a New One Year Lease @ $1350 a Month- Massive Cash Flow on this One!!
Appraised value $165,000
Price and loan amount $105,000 (instant equity $60,000)
Cash in your pocket at closing $5250
Money out of your pocket $0.00
Stories: 1.5
Beds: 5 Baths: 2 Sq. Ft.: 1,800

 

 

 Your benefits as a Credit investor…
* No money out of your pocket. NEVER (not for down payment and not for closing cost)
* instant equity of 25% to 45% ($25000 to $80,000)
* instant cash at closing for you to spend freely ($5,000 to $30,000)
* Huge 5 to 6 figure profits for each transaction
* Positive income every month
* All tax benefits
* 100% of all the Maintenance, Tax, Management and Mortgage payment are cover from the rent.
* 100% of all Net Operating Income
* 100% of the future appreciation
* 100% of Principal Paydown
* Investment fully secured by property
* Great management team to deal with tenants and maintenance
* One Year Home Warranty.
* One Year management FREE.
The loan to the Credit investor for that purchase is a full doc. Minimum credit scores are presently 700+.
For more information please e-mail to above address with your name, phone number and your credit score.

Real estate with zero down? Why would a seller walk away from closing with nothing? They wouldn’t, and that brings an important point about real estate investing with no downpayment: The seller almost always needs to get cash at closing, but it doesn’t have to be YOUR cash.

Zero Down Example

I’m selling a rental property right now, with payments of $400/month. The buyer has good credit, and his $5,000 downpayment covers closing costs and even a foreclosure, if necessary. At this point, I don’t care where he gets the downpayment. A $6000 cash advance on a credit card for example, would cost him about $135 per month, and provide enough for the downpayment and his closing costs.

In this case, with rent around $600 per month, he’d be okay. In many cases, however, the extra $135 would cause negative cash-flow. However you do it, just be sure the numbers work. By the way, I would have accepted payments of $350, if he had asked, because it’s the price and the interest rate that are important to me.

More Zero Downpayment Methods

While some sellers (like myself) are able to offer terms and low downpayments, most need or want at least 70% of the price in cash. This means you need to think in terms of how to get a primary loan, then how to raise the money for the remainder. Some examples follow.

Some banks do “no doc” loans, meaning they don’t require verification of your income, source of downpayment, etc. They’ll generally loan 70% to 80% of the property value, so if the seller is willing to take a second mortgage from you for the other 20% to 30%, you’re in with no money down. The seller gets 70% or 80% now in cash, plus payments for years to come. You’ll have two payments, of course, so be sure that the numbers work.

You can borrow against your home or other property you own to come up with downpayment money. You can borrow from friends and family. You can borrow against your car if you owe nothing on it. 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.

There are usually a few “note buyers” around, even in smaller towns. These investors buy land contracts, mortgage loans and other “notes” at a discount. Say a seller takes a purchase money mortgage from you for $100,000, for example. A note buyer might pay him $85,000 for it. How does that help you or him?

An example: A seller prices his property at $194,000, but expects to sell it for about $180,000. You offer $205,000 (making sure you’ll still get cash flow) in the form of a mortgage for $160,000, and another for

$50,000. You arrange for the sale of the first mortgage at closing for $136,000 to a note buyer. The seller gets $136,000 cash, plus payments from you on the second loan for $50,000. Notice this adds up to $186,000, which is more than he expected to get out of the deal.  

These are some of the ways you can buy with zero down. Real estate investing is about making a deal work for all parties. Find ways to get what you want, and get the seller what he wants. That’s more important than having large amounts of cash on hand.

If you are investing in single family homes, and want to do so with zero down, you may also want to read the article on