With the huge REO market that exists today, it’s pretty tempting to say that ‘no money’ down real estate investing is dead. After all, don’t banks and asset management companies want to deal in ‘cash only’? What about other sellers? Isn’t everybody in the game in need of cash like it was water?

It only seems like yesterday when Robert Allen was showing us all how to do “nothing down’ deals, assumable mortgages and the like. It wasn’t that long after that where we could do sandwich leases. subject-to deals and others using creative buying strategies. Where are the glory days of No Money Down?

The answer for buying single family house REO’s is: “Yes,” no money down is a non-starter for buying bank REO single family houses. Private money, either in the form of private mortgage loans or private equity investors becomes tremendously important here. You might still be able to get a decent deal if you try to purchase with a mortgage – perhaps on an estate sale or short sale – but the all cash REO buyer is going to get a far better deal 9.5 times out of 10.

Now…

For multi-family projects, the answer of whether no money down is dead or not is a bit trickier… Read More→