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Buying investment properties without much cash


I would like to tell all my followers about my first deal investing in real estate.  After reading several nothing down style investing books I knew I needed to get started.  First I was lazy and began emailing realtors who did not seem very interested in working with me.  They tend to prefer the opposite, large down payment and easy bank financing to get a quick sale and a large return.  I had no real money to put down; I only had saved up about $2,000 which is almost nothing in the multifamily sector.  After long nights thinking and evaluated my position I decided to start looking for owner financing since I had no real credit and a low income.  I eventually found someone advertising in the local news paper for a 5 unit with owner financing.  The seller wanted $40,000 down and he would finance the remaining $200,000 over 20 years.  This would produce a small cash flow after all expenses where paid but required $40,000 cash which I did not have.  I asked him if anyone asked for 100 percent owner financing which he said yes and he would never do.  The seller as reluctant to sell the property will no money down since he would have to transfer all the security deposits over to the buyer at closing.  So I assured him I could come up with the money after I talked to my partner.  I also made it a point to be very friendly with the seller and begin building a relationship.  After a few more emails and questions I began to see a friendship building.  I loved the building but still did not find an investor to finance the $40,000 and the bank certainly would not help. 


After about a month of going back and forth and confirming my interest in the property I decided to ask the seller if he would consider a more creative offer.  I had a little equity built up in my home and I thought maybe allowing him to place a lien on my house would help calm his nerves.  So I asked if I could run a creative offer by him and he said yes.  My next email offered the seller only $2,000 down with a $35,000 lien allowed to be placed on my house.  I would also raise the asking price by $10,000 to give him even more money.   He replied with “if you can raise the down payment to $5,000 we have a deal”. I accepted and then began searching for a way to get the $5,000.  I was about ready to sell my beloved car to help pay for it but I was lucky enough to talk my grandmother into giving me a 2 year loan.  Fortunately the cash flow was enough to pay her back before the two years.   It is possible so get started and don’t give up on your dreams.