The question on everyone’s mind these days is, can you really buy rental property with no money down? Everyone is talking about no money down, but in the real world, this is not reality. People have learned the hard way that it is extremely difficult to buy with no money down, and even harder if you are handicapped financially. If you’ve found yourself in this situation, give up, go back to the Barter System, or wait another 10 years to buy with no money down.
Here are the only five ways you can buy rental property with no money down.
1. Newspaper classifieds: back in the day, newspapers would simply run an ad for something like “we buy homes with good payment history” and you’d get all kinds of calls. They may have a specific phone number to obtain information about the property, but for the most part, the ad was simple. The owner was looking to sell quickly, in a matter of days. If you could actually find the motivated seller, you could get a good deal on the property, but these deals were few and far between. The people who did end up getting them would always have to be pretty desperate to sell at those prices.
2. Private owner financing: In private owner financing, the seller keeps the loan out of their name and carries the note, meaning they act as the bank. The clauses are always a little more cosmetic than having your name on the loan, because the previous owner may not want to move as freely as they can. If you could negotiate a good deal with the seller, they may need to sell the property quickly because of a divorce, or something like that. You know that these investors aren’t going to wait around forever, so they are willing to let you acquire the property now. This is a good deal for you as well, because the investment is only a small one in the grand scheme of things.
3. Hard money: this is not something that is open to the general public, but many investors have used this route effectively in the past. Basically, you’re Figuring out how many rental properties and investors there are out there, and there is plenty of money to invest. The hard money people are looking for properties that can be fixed up and sold quickly at a small profit. You have already seen how an REO property has been bought and sold, but investors are looking for better deals. This is another good opportunity for you to invest, because it is simple. You buy the property using hard money, and then you put a tenant in the property.
4. Lease to own: In this scenario you would buy the property from the seller. Then as the owner/seller, you would be leasing the property to the tenant for a period of time. The tenant would again be looking for a good deal, and is much more likely to pay a higher-than-market rent over the lease term (for a lease to own). You might be able to work out a credit program with your tenant, easily allowing them to buy or refinance the property in a few years.
5.” sinking property taxes: the local government can add this benefit at any time by changing the property taxes. This would allow you the opportunity to increase your property tax base instantly. If you own a property with very low tax rates, this can really add value to your property.
Don’t worry, there is still another three ways you can buy rental property. This is just the five ways that are the most common by far. If you know the basics of buying real estate well, you have so many ways to profit in this business that it is no longer a question of, “can you find a good deal”, because you can make 1, 2, or 3 times the profit on each one. Just find the deal and you’ll be really pleased with the amount of money you recoup from your savings.
We help property owners just like you, in all kinds of situations. From divorce, foreclosure, death of a family member, burdensome rental property, and all kinds of other situations. We buy houses Indianapolis IN and surrounding areas and pay a fair cash price, fast. Sometimes, those who own property simply have lives that are too busy to take the time to do all of the things that typically need to be done to prepare a house to sell on the market… if that describes you, just let us know about the property you’d like to be rid of and sell my house fast Indianapolis for cash.