No Money Down Real Estate Multi Family How

Replied May 25 2018, 12:27

Merely pay 10k to a guru to find out how. :) ( just kidding) if it was easy anybody would buy apartments starting out. I started out with SFR years ago, because that's where I was able to get started. Hopefully someone could offer someone that teaches this for a reasonable fee. I'1000 ears to here some replies to your thread.

Replied May 25 2018, 12:43

Everything is possible but requires some work. For east.g. finding absentee owners, sending tons of mails and calling them. Promise to find someone who would practise a lease option or seller financing with every bit picayune every bit 5% down which yous can get from a hard coin lender. Again, information technology's not easy. If information technology was and then easy, everyone would be doing information technology.

Terry Lao

Professional person
Anaheim, CA

Replied May 25 2018, xiii:02

@Elisha Salgado

Multi units with no money downward. This is possible, but it is the rare exception rather than the rule. You need a right set of circumstances for this to happen.

Seller. Owned for long period of time and want out. Doesn't need the money and willing to carry the note. Property needs work and tenants are difficult to work with. Could be no tenants likewise. Belongings non easily financed due to condition. Property probably been on market for long period of time, and has an unrealistic asking price.

Heir-apparent. No money but willing to put sweat equity into holding.

Odds of obtaining such a state of affairs, probably i in 100.

Terry

Terry Lao

Professional
Anaheim, CA

Replied May 25 2018, 13:08

@Elisha Salgado

maybe even 1 in 200, or higher.

Terry

Omar Khan

Rental Property Investor
Dallas, TX

Omar Khan

Rental Property Investor
Dallas, TX

Replied May 25 2018, 14:43

@Elisha Salgado Pay me a ton of money and I can give yous all my secrets ;) j/thou

In that location are Zero no money downward deals peculiarly if you're a beginner. If you spend money on advertisements and marketing that past definition is spending money. Experienced investors (@Gino Barbaro can pipe in here equally he did a no coin down deal, I think) rarely run into such gems and even then they've put in the fourth dimension, effort and coin into having a system through which they can accept this deal without putting any significant capital downwardly.

These kinds of claims are only propagated by scammy gurus to sell you their coaching. If you could buy assets for no money downwards, everyone would be doing it.

Caleb Heimsoth

Rental Property Investor
Durham, NC

Replied May 25 2018, 14:fifty

House hack a multifamily, which everyone on hither preaches. That'south oftentimes easier said then washed simply that's gonna be your all-time bet. You lot tin can do zero down if you're a veteran or 3.5 down or five percent downwards.

Account Closed

Rental Property Investor
Houston, TX

Replied May 25 2018, xv:57

@Elisha Salgado No money down is extremely rare and it is very dangerous for beginners as well given your LTV is so loftier. You may end upwardly running out of coin.

Fifty-fifty in that location is no coin down, you will demand some reserve to pay for closing cost, loan origination fees, may be some deferred repairs then on.

My suggestion would be go with FHA five% downwardly and house hack, learn the business concern. That's how I started and I now accept 28 units.

Replied May 25 2018, 16:04

you better accept a high credit score, proficient references , and be able to convince someone to lend you coin.

Replied May 25 2018, 16:13

No money downwards. Don't waste your time, that dog volition not hunt.

Ned J.

Investor
Manteca, CA

Replied May 25 2018, 16:xiii

Unicorn....

The existent translation is "I'm dead broke or shut to and I want to exist a millionaire past buying real estate....how do I do information technology?"..... y'all don't unless you notice a unicorn...someone that is going to pony up the $$ and let y'all be part of the deal for some reason considering you bring something to the tabular array that they tin can't.

Then it can be done....... not impossible..... but rare.

If yous don't have the $$ to kickoff....advertisements.....down payments....etc etc..... then you don't take the $$ for inspections....closings....reserves for Cap Ex etc etc etc etc etc......

Nancy P.

Naperville, IL

Replied May 25 2018, 17:05

Originally posted by @Elisha Salgado:
Hi,

I am new to bigger pockets and existent estate. I'd similar to know how to invest in multi family backdrop with zero money down? I've seen so many advertisements. Is this even possible?

I don't think you lot can delete the post merely you can change the notifications nether Settings.

Frank Chin

Investor
Bayside, NY

Replied May 26 2018, 04:02

I know an investor, who teaches at the NYU real manor school who does this. Simply his vehicle of choice is a long term triple cyberspace lease aka NNN.

Properties would be those owned by someone for a long time, appreciated greatly, a tired landlord who wants to sell, mortgage costless. He stresses that these owners would pay a whole lot in majuscule gains, and if kept to his death, heirs would be inherit at a stepped upwards ground, meaning heirs skips the cap gains at death.

He accumulated quite a portfolio, and NNN is his favorite tool as no one doing residential real estate ever heard of it, and if they did, idea it'south only for commercial properties.

Jay Hinrichs Premium

Existent Estate Broker
Lake Oswego OR Summerlin, NV

Jay Hinrichs Premium

Real Estate Banker
Lake Oswego OR Summerlin, NV

Replied May 26 2018, 07:57

Originally posted by @Frank Chin:
I know an investor, who teaches at the NYU existent manor school who does this. Only his vehicle of choice is a long term triple cyberspace lease aka NNN.

Properties would be those owned by someone for a long time, appreciated greatly, a tired landlord who wants to sell, mortgage complimentary. He stresses that these owners would pay a whole lot in capital gains, and if kept to his death, heirs would be inherit at a stepped upward basis, meaning heirs skips the cap gains at death.

He accumulated quite a portfolio, and NNN is his favorite tool equally no one doing residential existent estate ever heard of information technology, and if they did, thought it's only for commercial properties.

that does non quite rails.. once the tired out old landlord sells to your NYU prof capital gains is established and paid each yr as the income comes in.. there is NO stepped upwards basis.

what your talking about there is the tired quondam landlord keeps property till decease heirs inherit and so in that location is a stepped up basis and then the HEIRS can sell and not pay revenue enhancement..

We did this a ton in the timber business.. IE timber owners many times had these properties through a few generations waiting for the timber to mature.. Now kids inherit they sell it right away at the stepped up basis and parents usually had next to zero ground

Steve Vaughan

Rental Property Investor
East Wenatchee, WA

Replied May 26 2018, 08:19

Mine have been 'go your money dorsum... eventually' but never no money downwardly. Sometimes afterwards 10 years I got my capital back, merely I did get it.

That'south what an investor ways. Yous invest to become a return. "I am an investor with zero to invest. " What?

At that place is no such affair as no money down. Consideration must be exchanged for a transaction to even be legal.

None of your coin in the deal has an extremely high cost. The price is zero, simply the cost is wasted time searching and scouring and the frustration that is. The cost is a partner that gets one-half or more than of your deal because you didn't accept a lousy few grand. The cost is a 'mentor' that goes around y'all and leaves you nothing considering y'all didn't know how to protect yourself.

Better off earning more and spending less to salve while you learn. Being bankrupt is a symptom of eating and drinking out, the latest gadgets, fancy cars and skinny jeans. Salvage and earn and learn. There are no shortcuts in RE.

Jay Hinrichs Premium

Existent Manor Broker
Lake Oswego OR Summerlin, NV

Jay Hinrichs Premium

Real Estate Banker
Lake Oswego OR Summerlin, NV

Replied May 26 2018, 08:25

Originally posted by @Steve Vaughan:
Mine have been 'get your money dorsum... somewhen' but never no money downwards. Sometimes afterward 10 years I got my capital dorsum, but I did get it.

That's what an investor means. You invest to get a return. "I am an investor with nothing to invest. " What?

At that place is no such thing every bit no money downwards. Consideration must be exchanged for a transaction to even be legal.

None of your money in the deal has an extremely loftier toll. The cost is null, but the cost is wasted time searching and scouring and the frustration that is. The cost is a partner that gets half or more of your deal because y'all didn't have a lousy few m. The cost is a 'mentor' that goes around you and leaves you aught because you lot didn't know how to protect yourself.

Amend off earning more than and spending less to relieve while yous learn. Being broke is a symptom of eating and drinking out, the latest gadgets, fancy cars and skinny jeans. Salvage and earn and learn. At that place are no shortcuts in RE.

it is quite amazing why folks call up real manor is a space that should be entered with no money.. I understand why they think that given the pod casts late night TV etc etc. but reality check is this is a uppercase intensive business organization.. and undercapitalized business organisation fail most times.

Americans specifically have a very tough time managing personal debt.. and some of it is certainly regional.. IE west coast loftier priced compared to rust chugalug areas were homes are rentals are priced like used vehicles.. but even those depression value assets will accept running costs that will exceed cash flow many times..

Steve Vaughan

Rental Property Investor
E Wenatchee, WA

Replied May 26 2018, 09:08

Originally posted by @Jay Hinrichs:
it is quite amazing why folks think real estate is a space that should be entered with no money.. I empathize why they think that given the pod casts late nighttime Tv set etc etc. but reality check is this is a majuscule intensive business.. and undercapitalized business neglect most times.

Americans specifically accept a very tough time managing personal debt.. and some of it is certainly regional.. IE westward declension high priced compared to rust chugalug areas were homes are rentals are priced like used vehicles.. but even those low value avails volition accept running costs that will exceed cash flow many times..

Oh I know. Nobody would call back of trying to 'invest' in other sectors with no money.

No coin index investing. No money antique, art or classic car flipping. No coin crypto, baseball cards, stamps, coins, skateboards, bikes. LOL

Replied May 26 2018, 09:39

naught downwards deals are easy If this was 1995

Wow those were the days. 100% and 103% financing if you lot had a pulse.

Even farther back depreciation to off ready earned income from your other businesses.

It was almost difficult to NOT make a profit

Replied May 26 2018, x:00

I recollect it was Jim Carrey who said to Lauren Holly "Oh I get information technology; you're telling me there's a gamble".

Replied May 26 2018, 11:04

Originally posted past @Elisha Salgado:
Hello,

I am new to bigger pockets and real estate. I'd similar to know how to invest in multi family unit properties with goose egg money down? I've seen and so many advertisements. Is this even possible?

The best possible way to buy with "zero" down is if you are a veteran buying an possessor-occupied abode. Alive there 2 years, then sell information technology (assuming some appreciation) with no capital gains tax. Lather, rinse, and repeat every two to three years. That would be one of the quickest ways to build upwardly wealth with "cypher" down.

Omar Khan

Rental Property Investor
Dallas, TX

Omar Khan

Rental Property Investor
Dallas, TX

Replied May 26 2018, 11:15

Originally posted past @Bjorn Ahlblad:
I think it was Jim Carrey who said to Lauren Holly "Oh I get it; you're telling me in that location's a chance".

Comment of the mean solar day! You made me lol in real life...

Replied May 26 2018, 11:36

ooh just thought are there USDA cypher downward loans in rural areas?

Replied May 26 2018, 11:38

@Elisha Salgado

Here is 1 possible scenario:

I am currently buying another 6 unit with 100% financing, its non exactly no money, only I have secured a individual loan for x% of the 20% down payment. The depository financial institution is loaning 80% and all the rehab funds, I am taking the other 10% on a 401k loan, not because I need to, but because this is the cheapest money out there, the interest I pay goes back into my 401k then it is even so a cyberspace proceeds. All of this is possible for a few reason withal;

ane.) This is an incredible off market place deal that allows 100% financing and still greenbacks flows very well.

2.) I have a track record of successful investments with both my commercial lender, and private lenders who are request me for projects to place funds into.

3.) I take enough collateral, cash reserves, income, and experience that everyone involved is comfortable putting this deal together with me having "no money" into the deal.

If you practice not accept the experience, track record, or greenbacks reserves, you will need the nearly important thing. An incredible deal. If y'all find the correct deal, you volition have no trouble finding the financing, there are many options for no money deals, simply they all start with a great bargain. Let me know if you take whatever other questions. Best of luck!

James Orr

Real Estate Agent
Fort Collins, CO

Replied May 26 2018, 12:01

As @Caleb Heimsoth mentioned if y'all are a veteran and/or have VA benefits you can become a VA loan which is nothing downward. You tin can utilise the VA loan to buy a unmarried family habitation, duplex, triplex or fourplex if you're moving into the house or one of the units (for the multi-family unit).

Lenders... please correct me if I am wrong, but I don't think yous can do mutli-family with USDA loans. They are loans for more rural areas and I thought were restricted to unmarried family homes merely. In my area in Northern Colorado, there are cities that you would not expect to qualify for USDA loans similar Windsor and Wellington that you tin use the aught down USDA loan in.

Beyond the VA loan to invest in multi-family you are probably looking at creative financing strategies like marketing to discover sellers that are willing to practice stuff like possessor financing, wrap financing, subject to, charter-options/lease-purchases, installment land contracts or the similar. As people have suggested above, these tend to require quite a bit of effort to find, negotiate and purchase.

It is possible that y'all might find a significantly under-valued property where a difficult money lender would loan you 100% of the purchase price on a multi-family (for example if information technology was being sold for 65% of the ARV). Again, that would have finding the perfect deal which you'll likely need to exercise some marketing to find.

A more common scenario is you might be able to partner with someone who has the down payment (and/or maybe the ability to go the loan) and you take the time and expertise to track down, negotiate, manage the deal. In this scenario, it could look like no money down to you even though your partner is investing a regular down payment and there is traditional financing involved. What pct ownership you'd get for that is upwardly to you to negotiate with them and it can vary widely.

In my opinion, in that location are probably a few more than opportunities for you to find little or nothing downwardly deals with single family homes (there are four loans hither in my marketplace that are nothing down for well qualified owner occupants on single family homes: VA, USDA, Key Banking company and Compass Bank). Heck, there may be even more that I am not enlightened of. There are as well 3% downwards conventional financing loans for single family unit homes, 3.5% FHA loans and 5% conventional loans. There are also some down payment assistance programs that can become you closer to $one,000 down or i% downwardly in some situations.

Loan programs come and get. Upwardly until this calendar month, at that place was a 1% conventional loan plan and HUD had a $100 downward payment program awhile ago (but that was probably a decade ago).

Frank Chin

Investor
Bayside, NY

Replied May 26 2018, 17:49

Originally posted by @Jay Hinrichs:

Originally posted by @Frank Chin:
I know an investor, who teaches at the NYU real estate school who does this. But his vehicle of choice is a long term triple net lease aka NNN.

Backdrop would be those endemic by someone for a long time, appreciated greatly, a tired landlord who wants to sell, mortgage gratuitous. He stresses that these owners would pay a whole lot in capital letter gains, and if kept to his expiry, heirs would be inherit at a stepped up ground, meaning heirs skips the cap gains at expiry.

He accumulated quite a portfolio, and NNN is his favorite tool as no one doing residential existent manor ever heard of information technology, and if they did, idea it's but for commercial properties.

that does not quite rail.. once the tired out former landlord sells to your NYU prof capital gains is established and paid each year as the income comes in.. there is NO stepped up basis.

what your talking nearly there is the tired old landlord keeps property till death heirs inherit so there is a stepped upward basis then the HEIRS can sell and non pay tax..

Nosotros did this a ton in the timber business.. IE timber owners many times had these backdrop through a few generations waiting for the timber to mature.. Now kids inherit they sell it right away at the stepped up basis and parents usually had adjacent to zero basis

Your reply "once the tired out old landlord sells to your NYU prof capital gains is established ..." is absolutely Incorrect. When the professor establishes a long term NNN lease with the old tired landlord, the landlord retain "fee uncomplicated" interest, and the professor creates an "equitable interest". The property is definitely not sold.

Now if the landlord obtains a tenant, say signs a ordinary 10 year lease, it is articulate he fabricated no sale of the property and no capital gains tax is due. The divergence between this ordinary lease and the Long Term NNN lease is:

1. The lease must be at to the lowest degree thirty years, and no more than 99, and the longer lease terms does not make it a auction.

2. With triple internet, the tenant pays the taxes, repairs, and insurance, i.east. everything.

iii. Its a master lease where the lessee is the master tenant and subleases to others.

Whether the lease is 10 years or thirty, the holding is non sold. Usually in these cases, there is an selection to buy, just in cases of the quondam tired landlord, it is only exercised subsequently his death. During this period the tenant handles all belongings management.

Jay Hinrichs Premium

Real Estate Broker
Lake Oswego OR Summerlin, NV

Jay Hinrichs Premium

Existent Estate Broker
Lake Oswego OR Summerlin, NV

Replied May 26 2018, 17:52

Originally posted by @Frank Mentum:

Originally posted past @Jay Hinrichs:

Originally posted past @Frank Chin:
I know an investor, who teaches at the NYU real estate schoolhouse who does this. But his vehicle of pick is a long term triple net lease aka NNN.

Properties would exist those owned by someone for a long time, appreciated greatly, a tired landlord who wants to sell, mortgage complimentary. He stresses that these owners would pay a whole lot in capital gains, and if kept to his decease, heirs would be inherit at a stepped upwards ground, meaning heirs skips the cap gains at expiry.

He accumulated quite a portfolio, and NNN is his favorite tool as no 1 doing residential real estate ever heard of it, and if they did, idea it'south only for commercial properties.

that does not quite track.. once the tired out sometime landlord sells to your NYU prof capital gains is established and paid each year as the income comes in.. there is NO stepped upwards basis.

what your talking about at that place is the tired old landlord keeps holding till decease heirs inherit and and then in that location is a stepped up basis so the HEIRS tin sell and not pay taxation..

We did this a ton in the timber business organization.. IE timber owners many times had these properties through a few generations waiting for the timber to mature.. Now kids inherit they sell it right away at the stepped upwardly basis and parents usually had side by side to zippo basis

Your answer "once the tired out old landlord sells to your NYU prof capital gains is established ..." is admittedly Wrong. When the professor establishes a long term NNN lease with the onetime tired landlord, the landlord retain "fee uncomplicated" involvement, and the professor creates an "equitable interest". The property is definitely non sold.

Now if the landlord obtains a tenant, say signs a ordinary ten year lease, it is articulate he made no auction of the property and no capital gains revenue enhancement is due. The divergence between this ordinary lease and the Long Term NNN charter is:

1. The lease must be at to the lowest degree 30 years, and no more than 99, and the longer lease terms does non brand it a auction.

two. With triple net, the tenant pays the taxes, repairs, and insurance, i.eastward. everything.

3. Its a master lease where the lessee is the principal tenant and subleases to others.

Whether the charter is 10 years or 30, the property is not sold. Ordinarily in these cases, there is an selection to buy, but in cases of the sometime tired landlord, it is only exercised after his death. During this period the tenant handles all holding management.

right agreed.. only that does non give the person that posted this the ability to buy with no money ... this guy already owned it. its just tax treatment.

shafferdentrejecome.blogspot.com

Source: https://www.biggerpockets.com/forums/484/topics/572284-how-do-i-invest-in-multi-family-properties-with-no-money-down

No Money Down Real Estate Multi Family How

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