How to Buy a Property with ZERO Money Down
Did you know you can buy a real estate property with zero money down?
It’s true! Just check out these 4 key steps:
If you want to buy a property and put less money (or no money) down, then check out these 4 steps.
Buy discounted properties.
You might be able to find discounted properties on the MLS. Maybe. But you’ll probably have more luck finding them via a wholesaler. Especially when it comes to value-add properties (i.e. fix and flips and rentals).
Set up your loan properly.
This is an important 2-Step Process. The trick is to purchase with a hard money loan, and then quickly refinance with a long-term loan. That way you can get the highest loan amount possible. It all starts with discovering what you qualify for on the long-term side. Once you know what that loan looks like, you can match that number to your hard money loan.
Use rate and term, NOT cash out.
Okay, deep breath.
We’re not going to get into the nitty gritty of these mortgage terms, but we are going to highlight the significant differences.
Setting your loan up as a cash out can be very tempting. You get money at closing. What’s better than that, right?
Well, did you know when you set up your loan as a cash out, you:
- Pay higher costs
- Take a lot longer to refinance out of your expensive hard money loan
- Qualify for lower loan amounts
With a rate and term, all of that changes. You:
- Spend far less cash up front
- Refinance out of pricey hard money loans a lot faster (like, we’re talking months faster than a cash out)
- Enjoy lower rates
Better yet, your cash flow will multiply because you get to do more with your money when you pay less for your loans. This is actually a simple process to set up if you work with someone who can help you with both your hard money and long-term loans.
Put zero money down by finding the right lender
To seal the deal, find a lender who can handle these kinds of loans.
Unlike most other lenders, our team has the expertise, knowledge, and ability to handle everything from hard money to conventional loans. Plus, we treat you like a teammate, not a number.
With our help, you can start buying your properties with no money down today. Let’s chat!