A Step-by-Step Guide to Buying Real Estate with No Money Down


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How did you purchase real estate with no money down? is a question I am frequently asked. And I'll explain to you how I did that over the course of the last seven years. You guys need to understand that the most crucial aspect of purchasing real estate for financial gain is that you need to shop around. Right? Finding good bargains that you can purchase with no money down requires a significant amount of time. It is much simpler if you are ready to do it first and give yourself a selection of properties to choose from.

Find Good Real Estate Deals without a Down Payment

To find those properties, I would work with a real estate agent. You see, fellas, I wasn't the expert. I didn't have all the information I needed to make money from real estate, nor did I have the time to study it all. So the best course of action for me was to seek the advice of an expert, in this case, a real estate agent. In actuality, it was a nearby real estate agent. Guys, these aren't just any real estate brokers. I would seek out an eager real estate agent, right? who felt inspired to seek employment with me. See, the way these real estate brokers operate is that they eat what they kill, which simply means that they don't get paid until they bring together a deal, buyer and seller, and the deal closes, at which point they receive payment from the seller as a commission. As a buyer, that was ideal for me because I could locate a real estate agent who was aggressive and proactive, tell them what I was looking for, and they would go out and find me several properties that matched my requirements.

So, the first thing you need to do, man, is that. You must locate properties. And if you're not an expert at doing that, I would advise you to find a really good real estate agent. But they need to be motivated, proactive, and aggressive, and they need to be in line with what you're trying to do.

Taking out loans to pay for down payments

Understanding how to borrow other people's money is the second thing you need to know about purchasing real estate with no money down. Guys, that's what I would do. I wouldn't take money out of my pocket to invest in the deals. I would seek alternative methods of down payment funding.

Making Down Payments on Real Estate Using Credit Cards

My credit cards were one of those sources for me, but I avoided going to the bank to seek a cash advance so I wouldn't have to pay so much interest upfront. No, I didn't do it that way. To transfer my credit card limits to my bank checking account for a small price, I would search for credit cards with special offers—these are known as direct deposit transfer offers. My plan would be to visit my credit card provider and initiate a direct deposit transfer. They would tack on a transaction fee of 4%. I'll use one as an illustration. Imagine that I didn't have the $40,000 in my savings account when I needed it to put a down payment on a piece of real estate for income. I needed to find another way to obtain that $40,000.00. I would then proceed to my credit card and initiate the direct deposit transfer. 

Imagine that I have a credit card with a $45,000 credit limit, or that I have numerous credit cards with credit limits that add up to $45,000 in total. If that were the case, I would accept that $45,000 less the transaction cost of 4%. Based on my approximate calculations, that amounts to around $1,000. Therefore, the credit card company would retain $1,000 of the $45,000 credit limit. They would directly deposit it into my checking account after I took approximately 44 of it.

Direct Deposit Transfer Advantages

The idea with the direct deposit transfer is that there will be a time when I won't be charged interest by the credit card company. That is the entire appeal of the direct deposit offer that many credit cards make. And they can do that because they want you to use their card, which is why they can. You see, the only time the credit card companies profit is when we use their card. They profit from credit card transaction fees as well as from the interest they charge you on your outstanding credit card balances. They earn money in this manner. Therefore, if you don't use the card, you are losing money. 

Utilising Credit Card Promotions

So I'm a fantastic candidate for it because I have strong credit and a good income, right? You wish to use $45,000 of your credit limit, they responded. Perfect. You pay us a four per cent transaction fee, which is taken directly out of your available 45 000 credit. They collect the fee. That is the transaction cost they charge me for handling this. Then they don't add any interest to the $44,000 that I owe them. I believe they don't charge me interest for the first 12 months, 15 months, or 18 months. I therefore received access to the 44,000 for a period of 12 to 18 months at no cost to me. OPM was the one borrowing cash from other people. The credit card corporation is the other party in this scenario. 

Making Use of Bank Loans

I'll take that 44k then. Since I previously paid the four per cent transaction charge, I know I received the 18 months without paying any interest. So, that is finished. I then take 44 and use it as a down payment for my new home. I rented out that new house to a tenant. Now you're going to ask yourself, "Whoo, where did the other money for the property come from?" Say I put down $40,000 on a property worth $300,000, am I correct? Therefore, I'm still looking for, say, 260K. That's OPM again, I suppose. I then go to the bank and tell them, "Hey bank, I just bought this gorgeous property." Taking my expenses into account, it will pay me 1800 a month in rent. I expect to produce a net income of around $1,000 per month. Will you provide me a loan so I can purchase this property? 

Guys, what do banks do for a living? Earn a living. How do they generate income? from loans. You see, banks don't profit from your deposits. Your bank is genuinely liable for the money you deposit there. Why? Since the bank does not possess that money. When you enter and ask for it, they are required to return it to you. In many instances, the banks must also give you interest on that money. Therefore, that is a risk for banks. However, banks lend your money to people like me who come in need of cash to buy goods and assets. The bank acts in this manner. 

Therefore, many who don't invest in assets believe that saving money in a bank is the best way to increase their wealth. No, not always. Banks take your money and lend it to men like myself who are proficient at OPM so that we can purchase assets. That is what I do, then. I visit the bank with proof of my salary, they check my credit, and they determine that I am a good applicant. The 260K is given to me. I already received the $40,000 from the credit card company via direct deposit. Hey guys, guess what? I just put no money down on a $300,000 house. And what else, you ask? As a result of cash flow, it will put $1,000 a month in my pocket.

The Benefits of Real Estate Debt

Where else can you do that, guys? I now have authority over a $30,000 asset without spending any money. Guys, that's how you purchase real estate with no down payment, correct? Guys, that is how I operate and how I have operated for the past seven years. Therefore, you do not need to purchase these pricey courses and all of these. No, guys. You must possess good credit, right? You must have proof of income. You must be employed. You need a business that brings in money for you. You see, debt for real estate is good debt. Why? because it allows me to keep $1,000 in my pocket each month. I'm losing money because of bad debt. That debt is interest on a credit card. That debt primarily consists of consumer loans with high-interest rates. Guys, that debt is bad. Bad debt is consumer debt.

So that's how you buy a house without putting any money down. Guess what I did then? I simply repeated that procedure, aren't I right? I would repeat my actions every year or every two years. Purchase a new property, include it in your portfolio, put a renter in it, and then completely disregard it. By repeating that quick process over seven years, I quickly increased my net worth from $0 to well over seven figures.

Utilizing Credit Cards and Equity Lines 

Yes, borrowing money, using credit cards, obtaining equity lines of credit, using the property as security for the equity lines, and transferring equity from one property to the next. Therefore, I never had to take money out of my own pocket to invest in projects because I used equity lines and credit cards. I could then use my stellar credit. Because I always had decent work earned a good wage, kept my costs low, and had no consumer debt, I would use my fantastic income. I would then use that five-to-one leverage ratio at the bank to borrow the remaining amount.

Read Also:- How to Make Your Money Work for You 

Correct, I would utilise my credit cards and equity lines to cover my 20% down payments, and then I would go to the bank for the remaining 80% of the money, which they would readily loan me. Why? I was a very high credit risk, thus. I was validated. I had excellent credit, a good income, and a history of successfully purchasing these residences. That is how you put no money down on a piece of real estate.

Guys, leave me a comment and let me know what you think of that approach. 

Things are created from ideas. You can hold something in your hands if you can picture it in your thoughts. Keep striving to be the best version of yourself, never give up on yourself, and I'll see you in the following article.


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