The Best Kept Secret in No Money Down Real Estate


by Toby Lynn - Date: 2007-01-03 - Word Count: 602 Share This!

It does not take money to make money, and I'll prove it!

The truth is, if you can't make money WITHOUT money, you can't make money WITH money.

When I started in 2003, I had no money or credit. I was broke. I had no credit cards and no rich relatives.

I had quit my job and burned the ships behind me. The only way out was to make it, or get another job.

I had a mortgage and bills just like everyone else, yet somehow I made it happen.

I succeeded in spite of the odds stacked against me.

You wanna know why?

I'll tell ya why!

I succeeded because I had no money or credit.

Believe it or not, having money and credit when you begin your career as a real estate entrepreneur can do you more harm than good.

Having no money keeps you focused on doing the deals that don't require money.

If your credit sucks, like mine did, you can't apply for bank loans. Therefore, you have inadvertently avoided the two biggest mine fields. Not because you were so smart, but because you had no choice.

Whether you have money or not, you should learn to leverage your brain, not your wallet. When you do that, having money becomes a non-issue because you don't need it to buy houses.

If you guarantee loans, you risk everything you own.

Do neither, and you eliminate your risk. I bet I've said those words a thousand times, and I still see people who should know better doing it anyway.

Don't get me wrong, I'm not saying you shouldn't have money. I'd actually prefer you to be filthy, stinking rich!

I'm just saying you'll get there a lot quicker if buying houses doesn't depend on your capital or the number of loans you can borrow.

How many loans can you get before you get cut off?

Only a handful.

How many deals can you buy if you have to write a check for each?

You get the drift.

What about Pretty Houses?

Did you know that you can actually take over the payments of some else's loan?

Did you also know that the seller will actually make the first three payments for you after the closing?

Yes that's right. The seller will actually make the next three payments even after you own the house

Sounds unbelievable right?

Well it's not. I've done it numerous times without hesitation from the seller.

It's called taking title to the property "subject to" the underlying loan.

You're not ASSUMING the loan... that's conventional wisdom talking.

The loan stays in the seller's name until you find a buyer who will refinance the loan sometime in the future.

You can buy hundreds of houses and never ask permission or fill out an application to submit to a brainless loan officer.

The loans are not on your credit, and you aren't personally liable.

If you're new and I lost you there, "subject to" simply means the loan stays in the seller's name, but title transfers to you.

Keep in mind that this only works on PRETTY HOUSES... Not the junkers..

Taking over loans "subject to" on pretty houses usually requires no money from you, or, at most, a small amount. Yet you can immediately lease option the house or sell with owner financing and pick up $5,000, $10,000, $20,000 or more from a deposit or down payment, all within a few days.

We'll talk about selling using Lease / Options in a later issue.

So I ask you, what's all this crap about how you can't get started or get moving because you don't have the money? I think I made it very clear, money is not your problem.

You must make offers, and you should be making them without using your money or your credit.


Related Tags: real estate, investing, no money down, subject to, underlying loan, taking over payments

Register for your fr*ee newsletter, "Secrets to Real Estate Wealth with No Money Down" at:

http://www.6sinternational.com

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.
 

Recent articles in this category:



Most viewed articles in this category: