No Money Down Investing
By far the most popular page on my www.investmentre.com website is the one on no money down investing. We’d all like to get rich quickly without having any cash to invest. You can make money with no money down investing. I’ve had investors who do nothing but buy with no cash…but they learned what they were doing before they begain.
Keep in mind that “no money down” investing may not really be “no money down”. There are closing costs (which can be made part of the mortgage in many cases). There are startup expenses such as utility charges. There are taxes and insurance that are pro-rated at closing, with you owing a part of any pre-paid insurance. The list goes on, but you can often get around the need for cash…if you know what you are doing.
The question isn’t “can you buy real estate with no money down” but rather, “can you afford to buy real estate with no money down”? Keep in mind that you are relying in the income produced by the real estate investment to carry operating expenses and mortgage payments. In most cases, the incomes is not sufficient to cover a 100% leveraged property. This leaves you taking money out of your pocket each month to keep the investment solvent.
What do you think? Have you successfully invested with no money down? How did you structure your transaction? Post your comments here.
My “No Money Down” Ebook documents two of the no money down investments I made and how they were structured to help me avoid a financial disaster.
