Transaction engineering for the real estate investor is akin to a carpenter having a well-equipped toolbox or a surgeon having all the necessary operating instruments to get the job done correctly, safely, and in a way that everyone involved benefits. In our business it includes acquisition, property management, asset protection, negotiating, and tax planning to name a few. Today I want to introduce 10 no-money-down techniques (note: no-money-down means none of your money) that you can use alone or in a combination because no two real estate deals are alike.
I encourage you as you read this to think to yourself “how many techniques, how many tools, can I add to my tool belt that will allow me to effectively deal with and profit from every opportunity that comes along?”
Many investors use the same technique to do every transaction they find – they are doomed. Only occasionally can they find an opportunity where they can employ the single technique they’ve learned.
You’ll learn to recognize opportunities others don’t even see!
When other investors don’t know what to do, you’ll be able to pull a different tool out of your tool belt, a different technique or a combination of techniques, and be successful when they weren’t. And when you master these techniques, you’ll recognize opportunities and complete transactions others don’t even see!
To begin building your buying machine you must learn how to generate leads, identify motivated sellers and then buy below market with deep discounts using cash, private money, or hard money.
Another favorite is to use existing financing by acquiring the property “Subject to.” With this technique, you take over the payments on existing debt without originating a new mortgage. Options and Lease Options are another pair of great techniques to control properties without ownership and still generate great profits.
An opportunity for creating the deal after the deal…
Seller financing is my all time favorite. Sometimes it even presents an opportunity for creating a Deal After the Deal for increased profits. All of these transaction techniques can be structured as no money down. Consider split funding (some money now and some later); with or without payments; with or without a balloon payment, or virtually any combination you can negotiate.
When it comes to selling properties creativity is again your best strategy. How do you sell in a tough market? What do you do when the banks won’t lend? You become the bank! It is the most powerful way to build a fortune, while helping other people resolve their problems or achieve their dreams. And you won’t do it with adjustable rate mortgages or other exotic forms of financing that got this whole economic mess started.
Market your properties to a broader buyer base
We can sell or lease properties to create either cash or cash flow. Lease Options and Rent to Own programs can help more people qualify for home ownership while reducing vacancies. Selling homes with Owner Financing, Wrap Around Mortgages, and Agreements for Deed can help you market properties to a broader buyer base than the traditional buyer who will get a traditional bank mortgage. These creative techniques also help you overcome seasoning issues and maximize cash flow.
Well there you have it, at least 10 creative ways to buy and another 5 ways to sell without using banks. All the traditional avenues remain available but doesn’t it make good sense to have alternatives that work in any market? Using these creative techniques in an ever-changing array of combinations can give you hundreds of possibilities.
If some of the terms above are unfamiliar to you, don’t worry, you’ll have an opportunity to learn about them and put them to good use during our Quick Start Workshop Series. You can visit www.InvestorTrainingSecrets.com to learn more or better yet come to our next workshop!
Creating Your Real Estate Money Machine Workshop
“Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.” Dale Carnegie
Augie,
“Many investors use the same technique to do every transaction they find – they are doomed. Only occasionally can they find an opportunity where they can employ the single technique they’ve learned.”
This line especially rang true. Marketing campaigns can be expensive and time consuming, too often I see people throw away otherwise good leads because they don’t know how to capture them. As you say in your article you need a wide array of “tools” in your tool box to capitalize on your success. For instance, one of my colleagues essentially threw away a lead with little equity. It was a desirable area with great schools, just because wholesaling didn’t fit the bill for that particular strategy he could have considered subject to (great financing in place) or possibly a lease option.
I really agree with split funding. It really helps us in difficult times and to get ready for the difficult times. Because we do not know when the business could suddenly become worse.
I couldn’t agree more with you Augie on the content of your article. In this fast-changing world and harsh economic environment, we have to resort to adaptability if we want to make things happen. This is not only true for the housing sector!
Thanks for the tips Augie, I’m just beginning to get into the real estate business. This article has tons of gold nuggets. I shall share this with my peers. Thanks again sir.
Thanks for the ideas Augie. I see a lot of people that could benefit from this advice in the commercial real estate industry. With how hot the real estate market it right now, the strategies you mentioned will give an investor a real advantage over the competition.
Simply wish to say your article is as surprising. The clarity in your post
is just cool and i could assume you’re an expert on this subject.
Well with your permission let me to grab your feed to keep updated with forthcoming post.
Thanks a million and please keep up the enjoyable work.
Another thing we need to consider about our strategies, is – its not always about us. Think about it, if you come across a deal with very little equity – check with your local investment club, there may be someone that specializes with owner financing or wraps or something that everyone can benefit from. Sometimes we get what we want by giving others what they want. We are here to make money but lets not forget to help one another when we can not benefit from the deal.
See what other people don’t see. This is what sticks out the most for me. When there is no money, most people work harder! Thanks Augie.
Excellent article, very well written and too the point!
Thank you!!