We are just getting started in REI. My partner understands that we can purchase/aquire homes with nothing out of pocket (Ron Legrand plan??) How does that work?
We DON’T want to limit ourselves to just “flipping” houses to an investor who will rehab it for resell.
You’re helping us to understand this could be very helpful.
Thank you!
Everyone’s experiences will undoubtedly be unique, but for us here are a couple things that have happened:
Bought our current residence from a motivated seller who had to do a 1031 exchange so her clock was ticking. Fortunately for us we were already living in the house as a rental, and though we didn’t think we could pull it off (California prices) we found out what she needed and were determined to get it to her. Her number was a good 20% below market, as the house she was buying was MUCH cheaper and the house she was selling was nearly 100% profit anyway as she’d owned it for over 30 years. So she just needed it to happen FAST and without lifting a finger for repairs (house needed a lot of work).
So in order to get it nothing down, she wrote up a “gift of equity” letter, gifting us 20% of the house, which was then accepted by the loan underwriter as effectively the down payment. So an 80% loan was all that was needed to get in, which we got.
Another deal was a rental we bought, that was pretty simple and traditional - 100% financing on an 80/20 loan. Few thousand in closing costs paid from an equity line, so no money out of our personal pocket. Property yields a slight positive cash flow.
So there are TONS of ways to do nothing down. Just gotta remember that “nothing down” does not mean “no money”, it just means it’s not YOUR money. So even using credit cards to buy property would count as nothing down provided the property then pays for the credit card bills.
Just my own thoughts of course! 
Jonathan
For the most part, all rei inveseting is best done with opm (other peoples money). There a 5 main catagories for aquiring properties ‘Ron Legrand’ Style. They are: Wholesales, Getting the Deed (Subject 2), Lease Options, Options, and Rehabs. It is really far to much much info to cover all of these different areas on this board, so my suggestion would be to go and find his book at your local library “How to be a quick turn real estate millionare” by Ron Legrand and that will definately give you a great starting point. Then come back to this board and ask more specific questions when you have them and I’m sure someone will be more than happy to help you out.
Since you are just getting started and there is so much anti-investor anti-flip legislation swirling around us these days, you may want to consider holding properties rather than flipping. Take the time to do your research as your exit strategy is vital to your success. Good luck.
Da Wiz