I get asked all the time if it is possible or not to buy properties with no money down and, of course, the answer is absolutely, yes! But, you have to get creative, ladies. You can’t just sit there and expect these things to happen. You have to get out there and make them happen.
Those who are willing to do the work will definitely be able to put these tips to good. Now you need to determine if you are one of the willing or not. So, are you?
10 Steps to Buy Properties with No Money Down
The truth is that buying properties with no money down is really quite simple, but it is not easy. There are steps involved and intentional actions that you need to do to help pave the way for the success you want. But, after doing this myself dozens and dozens of times, and now helping many other ladies achieve the same success, I know that it is more than possible.
The only thing that is uncertain is your commitment, so make that decision to dig in and keep going and in time you will certainly achieve your success!
Let’s get started.
Step 1: Talk to People
Every time I left my house or even stepped outside, I talked to people. Neighbors, the handyman, people in line at the grocery store, the cashier; it didn’t matter, I talked with them.
Talking to people will get you more leads faster than anything else.
One day I was talking with a handful of the guys who live in my neighborhood. While we all stood there talking, the guy who mows my yard showed up. So, I started talking to him, too. Pretty soon we had a whole gaggle of us chatting away, which led to Step 2.
Step 2: Ask the for the Leads
After we had talked for a bit I mentioned that I buy houses and then said, “Do you happen to know anybody who has any little crack houses or something that they just don’t want anymore?” Y’all, listen up. That question right there, “Do you know someone who has a house they don’t want anymore?…” y’all, it is GOLD. If you ask that question to ten people every day, your pipeline for houses will ALWAYS be full.
One of those guys actually had two houses he didn’t want anymore. So, I got the information, jotted it all down, and we ended the conversation.
Step 3: Follow-up
The process does not end there, ladies. Once you have the lead, the next step, and probably the most important one of all, is to follow-up. Not only did I get the property addresses for the houses from the guy, but I went by the properties to check them out. No, I did not go into them, but I drove by them and got a feel for the status and general upkeep of the houses. After that, I called him back.
Step 4: Make an Offer
Once I checked out the houses, I called the guy back to talk. I told him things looked good to me and asked him how much he wanted for them. He did not really have a number in mind, so he asked me to make an offer. “$10,000,” I said. And he responded, “each or for both.” Well, let me think…”Both….” Well, he thought $5000 per house was too low, but he countered saying that if I gave him $12,000 total we’d have a deal. Of course, I agreed. YAY!!!
See how simple that was? With no money down, I secured an offer and had a deal.
Step 5: Sign the Paperwork
Let’s not make this more difficult than it needs to be, ladies. Once you have a deal, the next step is to sign the paperwork. Now, at this point with these properties, I didn’t really do any research on the numbers. I figured they were each worth somewhere around $20k-$30k, so $6k each sounded great. We got the contract signed and made a plan for the seller to owner finance it for me over 3 years. I also had a few months to find a buyer or tenant before giving my first payment. So, I got to work.
Step 6: Advertise the Property
Ladies, we are investors. We are not looking for these properties so that we can live in them (usually), so the next step once you have a deal under contract is to advertise! Remember, I now had two houses from this guy, but I focused on the nicer one first to market.
I took a couple of pictures of the house and posted it on Craigslist, Facebook, and Zillow for $15,000 OR a lease option.
My inbox and phone blew up with the responses, which led me to Step 7.
Step 7: Find a Buyer
People from all over the place wanted to see the house, but the next door neighbors were actually the ones who made the first offer. They said they thought that $15,000 was too much, but they made a counter offer of $12,000. For this they also wanted to give me a $5000 option fee to reduce the total down to only $7000. I accepted, but wanted to see if I could bump my profit margin a bit more, too. So…step 8.
Step 8: Re-negotiate the Deal
Now that I had a buyer in place and a solid deal, I came back to my seller to renegotiate. “Hey, I have a buyer who is ready to do this, so I wanted to see if instead of taking a long payout from me over 3 years, do you want to take a cash payout now and we’ll be done?” Since I knew I was going to get $5000 down from my incoming tenant buyers, I asked my seller how much he’d be willing to take in cash to close things out now. Guess how much he said…$3000! We had a deal.
Step 9: Collect the Money, Honey
I met up with the new tenant buyers and they gave me a check for $5000, which I immediately deposited. Now, in case you have gotten lost along the way, that was $5000 for the option fee. From this money, I then needed to pay my seller $3000 for one of the houses and not do an owner finance deal.
So, basic math tells us that right off of the bat I made $2000 with this first property within the first day of owning it.
I would own the house free and clear and continue to be paid about $300 monthly for the next three years while my tenant buyers paid off their $7000 balance. It was time to close!
Step 10: Closing Time
Once everything is situated, done, and settled with everyone, it is time to go to closing. Remember, I had absolutely no money down or out of pocket money invested in this deal. My tenant-buyers paid me $5000 which I used to pay the $3000 cash offer for the property. In fact, not only did I have no money down, I made $2000 right away! And I would continue to get a monthly check for three years to come.
Yes, it is that simple.
It is really possible to buy properties with no money down? Absolutely!
So, let’s recap: you talk to people, ask for leads, follow-up, make offers, find buyers, renegotiate, collect the money, and close those deals. Done!
It might seem like this is all just a little too impossible, but people like me are doing these deals every single day. That is why I now teach other ladies how to do this exact process over and over again. There is no reason why you need to wrap up your hard-earned cash in properties. Don’t waste your time doing things the old school way. Get creative, get to work, and make that money, honey. Woohoo!