Many people would like to invest in real estate but either they do not have enough money for a down payment or they do not want to lock their cash into a property purchase. It is possible to buy property with no money down.
- Roll the down payment into the purchase price.Depending on your credit rating and lending history, some lenders will allow you to finance 100% of the purchase price.
- Negotiate a separate installment plan for the down payment. Negotiate a separate installment plan for the down payment. Sometimes the seller will allow you to pay the down payment on a monthly basis. Look for an investment partner who will put up some or all of the cash in an equity-sharing partnership. You make the monthly payments and the two of you split the eventual resale profits.
- Get the seller to transfer their mortgage to you.This is a common occurrence in foreclosures where the homeowner is eager to sell and is willing to work with the buyer. You can do the deal as an assignment of contract and efficiently close the sale.
- Find a property to rent-to-own or lease with an option to buy.If you have a lease-option for 5 years, at the end of that time, you will need to purchase the house and can get a bank loan then. Meanwhile, you can use the time to fix your credit and/or save for a down payment. Some contracts may put some or all of the rental amount towards the down payment.
- Get owner financing or a land contract.Another option is to have the seller act as the bank. You make your payments, including interest, directly to the seller. During this time, you should have enough equity to qualify for a standard bank loan.