How to buy property with no money down
003 - Today we’re talking about buying property with no money down. I know you’ll love this episode because of it’s just such a sexy idea to be able to own assets, create long-term wealth without investing any money.
I’m going to explain how creative property strategies helped us buy properties
Let’s dive in.
No Money Down
It’s seductive
We’re all in love with the idea that you can generate cashflow or build wealth starting from nothing.
And you can do it without any of your own money.
But you will need one thing that you often won’t have at the start but you can build it
You will need resourcefulness.
Buckets of it
Because resources are always needed.
Whether it’s your time
Whether it’s your knowledge
Whether it’s your money
Because money is usually needed - yours or other people’s
Some people don’t like the phrase no money down for the reason.
Because money is usually needed.
But we know what it means.
No money down.
It means using other people’s money.
Or being able to recycle your money.
Before we go further I want to explain the main strategies
Let’s go into what the main creative strategies are
There are two main ones
The first is
Lease options
Option to buy a property by an agreed date for an agreed price
Option to buy
A lease option means that you don't need to take out your own mortgage or find a big deposit immediately.
You can pay a very small amount and buy the property over time.
The second is
Exchange with delayed completion
Contracted to buy a property by an agreed date for an agreed price
Contracted to buy
This is similar to a lease option except that with an exchange with delayed completion you have an obligation to buy the property at the end of it.
The idea that a property owner would want to sell their property and receive the money over time instead of all at once is confusing to most people. So let’s start off with a real life example so that you can see how this works.
Let me give you an example
We have a property on an exchange with delayed completion is 4 self-contained flats on one title.
So it’s a conversion from a single house into 4 flats.
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