Buying w/o using your own money...

General Real Estate Investing
1

I recently went back and reviewed Carlton Sheets “No Down Payment” system, specifically the chapter on how to buy without using your own money, and sometimes it just seems a little hokey. Other times, I read it and think ‘ok, let’s do this’.

My question is, other than 100% financing, how many of you actually bought a property without using any of your own money, and how did you do it?

I’ve been through the process of buying a home already, with first time homebuyers programs that don’t require a down payment, but that doesn’t work for investment property. Plus, the mortgage companies I’ve worked with are very strict about the source of any monies you do have. So how do you get around that when you’ve borrowed money from other people for a down payment? From what I’ve seen, you have to get gift letters from those people which officially absolve you from having to pay that money back, otherwise the loan doesn’t go through.

I’d appreciate any input.

Thanks

2

Howdy Beemnseven:

I do it using hard money loans buying rehab property. I am in the middle of a $750K deal that I bought for $165K and $250K in rehab. I borrowed the purchase price and rehab money and borrowed the equity money from a private lender. I also borrowed the earnest money and appraisal money and the engineer money as well. It is not cheap with bad credit like mine but it is a great deal with a lot of equity.

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Thats an amazing deal TedJr. Where the heck do you find these sweet deals??? Was this a house that no one would touch with a 10 foot pole and thats why you got it at such a good price? I have to say that a house that needed 250K in rehab would scare me off. I wouldn’t know where to start, unfortunately.

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Howdy Reigal:

It is a 30,000 foot office warehouse located in Corpus Christi.