No. But yes. How’s that for clarity?
The first time I heard that term, my mother-in-law had given me some tapes that she had bought off of a late night infommercial. She had listened to them and said it sounded legit so I gave them a go. And sure enough. It did sound legit. And within a few years, I learned, by doing it over 100 times, that it was legit. Really and truly.
So no, a house is generally not bought without putting cash down on the deal, the trick is, that it is just not YOUR cash.
If you partner with someone that wants to buy real estate but doesn’t want to do the work, you will do the work, they will put in the money. So for them, it is NOT no money down, but for you, it IS no money down. Make sense? The money is just coming from someone else is all.
So whether called no money down, Other Peoples Money, Joint Venturing, OPM or any other name, what it all comes down to, is that YOU DON’T NEED MONEY TO INVEST IN REAL ESTATE.
I know from experience – I had no money, yet bought over 100 places. It really works. And yes, legally. Yes with lawyers. Yes lawyers of my choosing. No I didn’t buy from the same people. Yes I found these houses on my own, through Realtors, or just by rollerblading by and seeing a FSBO sign. No scams, just legitimate investing. (see Caution Ahead though)
In Canada, most of us call this Joint Venturing, though the legal term may sound like a partnership. Ultimately, it is two people coming together to buy real estate. Each one puts in a different asset, usually, one person puts in the money (Money Partner) and the other puts in their time (Working Partner).
Though No Money Down is usually just a catchy term for Joint Venturing, there are very occasionally some unscrupulous people that may pitch a deal to you as No Money Down. Be very cautious should this come up for you. I had it happen to me when I first started and came very close to getting involved in a deal that I later found out to be illegal. It seemed good, legal and clean, so did the ‘ex police officer’ that was ‘selling’ it to me. And it was a scam. That’s not to say there aren’t No Money Down deals out there, but can be disguised very well so for newbies, its probably best to leave that money on the table, and let a more seasoned investor win that one. If its no good, they’ll smell it where a newbie most probably wouldn’t
So back to positive talk! Yes No Money Down exists, and yes, we can help you through that. Be sure to sign up for our reports, books and courses on what they are, how they work and where you can grab a piece of the action.