Starting From Nothing
I have next to no money, no credit, and two part time jobs in which I work less than 20 hours a week because I'm in school. This site is called the creative investor, eh? Well lets see how creative it is....How can you acquire properties with nothing? I've been thinking about this for a while and have come up with a few things that might work, but then again, I'm inexperienced and don't know much about REI. Even if I had money I would still want to know the answer to this. Thanks for reading,
Chris
Lease Purchase, a good contract and a pen with $10...
how will that do?[ Edited by DaveREI on Date 10/24/2003 ]
Most lease purchases want a down payment, right?
$10 down
I bought a 200k rest with $0dn and 500 a month.Also a 1.5mil 50 rm&2400sf hotel
for $0 dn owner carried a second 150k 0% 3yrly pymts ,REALTY BROKER CARRIED 72K FOR 6MOS NO PYMTS,..................AND PUT 156K IN THE BANK TO DO A TURNAROUND....A 2bdr aapr @65k for 37 nmd owner finance.dont be so skeptical!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! your imagination outside the box is your only limit..
Put on the breaks first. Get a copy of realestate jobber 101. read and think. Plan which direction you wan to take. I have started several business. Then I decided that (like the book says) I am going to build a business. Far too often when building a business people forget what they learn in school. Make a plan. Be a builder. Build you dreams. Build the deals. It will come to you. Just got to be "Creative"
Does a lease purchase mean that you don't eventually own the property? I don't think that would do me much good....???
You can do a L/O this way. TALK
Talk to the seller. If a seller wants a down, tell them they will get it when your buyer moves in. If the seller wants 5k, get 10k from your buyer.
You don't need to own the property, you want to control it. Control how the cash flows throught the property.
The terms and conditions will determine when you own the property.
Say you L/O a house from a seller for 5 years. You find a buyer that you L/O this house to and just can't wait to own it. Their credit sucks, but they can make the payment. They live in the house for 5 years, clean up their credit, and obtain a loan for the remaining balance they owe your. Of course your balance will be more than what you owe the orginal seller. No money ever came out of your pocket and you never owned the property. You just stepped in and controled it for 5 years.
How does that help you if your balance is larger that what you owe the original seller?
The balance that is due to you would be.....say 100K from your buyer. You owe the seller 90K. You get 10K when they buy.
The amount owed to you is more that what you owe to your seller. You get the difference.
That sounds like a good idea to me......any others out there? Hey you people with properties and money! Don't let having money and properties spoil the way you think! Just because all you have to do is make a huge down payment or pay the whole thing off right away doesn't mean you can't think creatively anymore.......or does it? PROVE IT....put your ideas down, not just for me but because these are things everyone should know and that you should think about.....you never know, maybe you'll come up with something from this. good luck,
Chris
I just approach every property like I'm broke, zero money. No matter how much money is in the bank, I try to get into the property as light as possible. The more you have in the deal, the greater your risk. Little money, Little risk. I focus on Sub To investing so my offers range from $10 to $8000 depending on the equity.
But since I spent most of my life being broke, I'm not far removed from the feeling. It's not that hard for me to do.
Quote:
On 2003-10-24 21:38, steve8788 wrote:
I bought a 200k rest with $0dn and 500 a month.Also a 1.5mil 50 rm&2400sf hotel
for $0 dn owner carried a second 150k 0% 3yrly pymts ,REALTY BROKER CARRIED 72K FOR 6MOS NO PYMTS,..................AND PUT 156K IN THE BANK TO DO A TURNAROUND....A 2bdr aapr @65k for 37 nmd owner finance.dont be so skeptical!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! your imagination outside the box is your only limit..
Please, please, please tell me how in h.... were you able to do this??????
Quote:
On 2003-10-25 21:49, nebulousd wrote:
The balance that is due to you would be.....say 100K from your buyer. You owe the seller 90K. You get 10K when they buy.
I have been told that lenders do not like to give money to the buyer at closing, they consider this as a cash out purchase and it wont "fly". Is that correct?
Quote:
On 2003-10-26 11:33, emayah wrote:
[ I have been told that lenders do not like to give money to the buyer at closing, they consider this as a cash out purchase and it wont "fly". Is that correct?
They wouldn't be giving the buyer money. The purchase price goes to a combination of YOU (you're the guy who has it under contract) and the SELLER.[ Edited by doni49 on Date 10/26/2003 ]
you can also birddog. You make a little money while learning the ropes...
Just a thought