How to Buy Real Estate with No Money Down

July 17th, 2010

More new Real Estate investors ask about how to buy Real Estate with no money down more than any other questions. If you look online or listen to Real Estate gurus such as Robert Allen, you will hear them preaching of many ways to buy Real Estate with no money down. However, a lot of new Real Estate investors have tried their methods and have failed. Only a small number (less than 1%) of the Real Estate investors who listen to them actually succeed and most of them did not succeed in buying Real Estate with no money down.

The real question is if you have no money, no credit, can you buy Real Estate? Gurus will say yes of course and that they have done it. However, maybe they did do it once or twice in the past, but the world has changed and so many new Real Estate investors are after the same thing nowadays that if you believe that you can buy Real Estate with no money down or no credit and no access to any money at all, you may be in for a surprise.

How can I buy Real Estate with no money down?

The truth is that no matter what the gurus tell you, you cannot buy and hold Real Estate with no money down. If you want to do some Real Estate deals where you don’t hold the Real Estate properties, you may be able to flip the Real Estate without any money. But, it is very difficult to do and nowadays with the Real Estate market the way it is, it is getting less and less possible. However, the money down does not need to be in cash, it can be in credit form. In either case, to buy any Real Estate (hold any properties) without either:

cash, or
credit.

Should I buy Real Estate with no cash or no credit?

Even if you manage to secure a Real Estate property with no cash or credit, if you plan to hold the Real Estate property, it is likely that there will be unexpected expenses along the way before you either rent, fix or sell your Real Estate property. To hold a piece of Real Estate without cash or credit is very risky. When most people talk about buying Real Estate with no money down or boasting about holding Real Estate with no money down, they often fail to tell you that they have access to the cash or credit or funding of some sort, they just did not end up using them. Don’t get into a Real Estate deal where you rely on the rent that you tenants (if you have any) would pay you. What if you cannot find tenants? What if your tenants cannot afford rent and don’t pay you? Then where would you get the money for repairs? or even eviction? In an ideal world there are many ways to buy Real Estate with no money down, however, in the real work, it is risky and if you succeed (which most people don’t) there are still strings after strings of risks that come afterward.

Real Estate Investment