Sorry to burst your bubble, but there is no secret list of No Money Down Houses, but I can share with you some insights on how to find deals that you can structure with no money down (links are to resources exclusively for our Real Estate Investor Bronze Members).
First, you can find some deals in the Multiple Listing Service (often abbreviated MLS) or through a competent Real Estate Agent or Real Estate Broker. Many, but not all, of these will require great credit and the ability to document income to get anything near financing that involves no money down from you. Of course, with good credit and a flexible seller, you might be able to structure a deal where you provide most of the purchase money with a new loan and the right seller may be willing to carry back some of the down payment.
Second, you can try to find motivated sellers that are much more flexible in how you purchase their properties. A seller that has a property they can no longer afford is much more likely to allow you to purchase the property in such a way that you have to put no money down and can often make payments on their very attractive financing. Spending a little time/resources finding these motivated sellers can prove to be an excellent investment.
Third, using a combination of hard money lenders, private money lenders and flexible owners willing to structure owner financing deals you can find deals both in the MLS and outside that you can buy houses with little or absolutely no money down.
Until my next post,
James
As many of you know, I am a huge advocate of owner financing especially in our current credit situation in our country and getting owner financing is so much easier when the seller has equity to work with.
It is very difficult to have a seller offer owner financing when they owe 100% of what their house is worth and, on the opposite side, it is much easier to make a deal work when a seller has some equity in the property and you can make offers that are creative with that equity.
I’ve been known to share the very limited stats I had–and I forget the exact source where I first heard them–about the number of homes in the United States that are owned without any mortgage on it at all. The stat I would share was that about one third of all the homes in the US were owned free and clear.
When I would share this with real estate agents and brokers I know, they all said, “Really?!” Because the people that tend to buy and sell real estate frequently are usually the ones with loans. To pay off a 30 year mortgage making just the regular payments takes 30 years of staying in the same house and making payments every month. So, real estate agents and brokers tend to see fewer people with homes that are owned free and clear than the stat of one in three suggests, but I just found a great new resource put together by an investor that I know of from a call I listened to.
In his resource, he lists out all the states in the US and what percentage of homes are owned free and clear, which have FHA or VA loans, which have prime or subprime loans. It also shows the foreclosure rate and what part of the homes in foreclosure have what type of loan. It is actually a great little cheat sheet for getting a quick snapshot of the US by state.
To get a copy of the report, go to:
http://briandickersonflips.com/blog/?p=37
Until my next post,
James
P.S. Owner financing is a strategy that I focus on and emphasize to my consulting and mentoring clients and discuss in our training material for bronze members. Sign up for our real estate investor consulting and mentoring program now to access those resources and learn how to get owner financing deals.
