Hey everybody, has anyone out there ever used the seemingly popular "no money down real estate" system? Particularly the one Robert Allen promotes? If you have please share your experience including any fine print, things they don't tell you, etc. Cuz I've seen infomercials about this for years from many different people, but I'd love to know what the actual program involves. Thanks.
2007-11-20 12:31:15 · 7 answers · asked by jldude 5 in Business & Finance ➔ Renting & Real Estate
They are basically legal scams. Their systems do work but only in select markets. If they made all this money buying and selling real estate they would not need to sell books. This is where they really make their money. Trust me they are a waste of time, and money.
2007-11-20 12:39:02 · answer #1 · answered by frankie b 5 · 1⤊ 0⤋
There is no such thing-usually. It is possible if you find the right buyer at the right time. But by then you've spent money/time marketing to them and learning what to say. "No money down" means none of your OWN money and mastering how to use other people's money. I have done what you're asking, here's my story.
I spent $15,000 on my credit cards for education/coaching. Then rotated/transferred the balances to different cards and negotiated 12 month no interest with each card (I used two to do this). Then I used my tax refund as the down payment on a house. I marketed like mad for 30 days while waiting for the closing to happen. Had tennats lined up before I actually closed.
Used my third credit card to pay for the rehab. Had the tennants in the property 4 days after I closed. The security deposit and rental advances paid off the re-hab. I made 3 payments on my mortgage using the rental income. Month 4 I did a cash out re-fi and paid off all my credit cards, replenished the security deposit and pocketed $1,000.
I still own that rental, collect over 300 gross cashflow per month and still have 25% equity in the house.
This is a no money down deal because none of the funds for anything really came out of my checking account. The tax refund was mine...but I never had the money all year long in my bank account so it didn't impact my expendible income a dime to use it in the deal. Credit cards were someone elses cash and the mortgage is paid by someone other than me.
No money means not using your own. But it does take money to get into the game. It took me 5K and some credit. If you don't have enough credit, get more cash.
2007-11-20 21:07:57 · answer #2 · answered by cnichol_t 2 · 0⤊ 0⤋
Some people made a lot of money in real estate, some even became very rich, but I have not met a single person, who did it because of a "system" or a "seminar" from an infomercial.
I'm sure you'll get stories here from people claiming they did it, well, as I said, I've been in real estate as a Realtor and investor for a long time and never met such a person.
If it sounds to good to be true...
2007-11-20 20:40:01 · answer #3 · answered by REALTOR 3 · 1⤊ 0⤋
Its possible to get "nothing down deals" but its very tough. Most of these guys make more money selling tapes than they do in real estate.
2007-11-21 01:05:38 · answer #4 · answered by sm4125 3 · 0⤊ 0⤋
The only people making money on these systems are the people selling them. Save your money.
2007-11-21 00:52:31 · answer #5 · answered by godged 7 · 0⤊ 0⤋
I would stay away. Find a good real estate agent that works with investors would be the better way to go.
-Angela
2007-11-24 17:03:04 · answer #6 · answered by Biancoa 4 · 0⤊ 0⤋
Save your money!
2007-11-20 21:49:46 · answer #7 · answered by Christiane 3 · 0⤊ 0⤋