Can You Really Buy Property With No Money Down?
Question: Can You Really Buy Property With No Money Down?
Dear Joe, How is it possible to buy with zero down? I know an agent here in Philly who lost his license and went to jail last year because they were doing zero down deals. Apparently, they would raise the price of the house and get a kickback at closing to cover their down payment. They took all the money and then the houses went into foreclosure. Can you really buy with no money down or are you teaching the same method this guy was using.
Michele from Oklahoma
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Read Transcript for “Can You Really Buy Property With No Money Down?”
Joe: I’m calling this video series ‘Stories From The Trenches.’ I’ve been watching ‘Band Of Brothers’ which is a story about the guys in World War II from the 101st Airborne that went from Normandy all the way into Germany and helped win the war. And one of the things that I’ve noticed from watching those guys is that when they’re under a lot of pressure together, they create bonds that they’ll keep the rest of their lives. They work together as a team; they work together as a group.
Joe: One of the things that’s happened with the people in my mentor group (although they’re certainly not under the same kind of stress that these guys were under) is that when they start something new, something that’s a little bit outside their comfort zone, a little bit outside the normal life that they’re used to living, taking risks on new ideas, or taking chances on new techniques that I’m teaching them, it creates a bond between them. What’s come out of it all is a group of people, men and women, that are working together that know each other, that trust each other, that do deals together and can help each other along in this process. We’ve got people who are more advanced helping people that are new, and people who are new that are going to the people who are more advanced, knowing that they can trust and work with them.
Joe: When you’re first getting started in a business like this, it’s really great to have what Napoleon Hill called a ‘Mastermind Group’ and to be able to bring all of these people together and think about the processes that you’re trying to improve all the time.
Joe: What I’m trying to do with these videos is to answer questions about my mentor program, about the two day buying events that I do where we get everybody together in a room and we buy real estate together. I want to answer questions about the techniques that we’re using and the ways that we’re buying real estate so that you’ll have a good understanding of the process and the system that we’re putting together to make this all happen.
Joe: So I’m just going to get right into it and I’m going to answer the first question today, which I think is probably the most appropriate question to get this series started:
“Can you really buy properties with no money down and no credit? I’ve seen the late night TV guys but that seems like a scam to me.”
Joe: I could certainly understand why it would seem like a scam to you. There’s a lot of hype behind this stuff – there’s a lot of people telling you that you can get rich quick – that’s not what we’re doing here. What we’re doing is a *business building program*, first of all (we’re going to talk about that in some of the later videos). Can you do zero down deals with no credit? – *Yes, absolutely, you can* – and it’s all about how you structure it. As a matter of fact, we very rarely use money down and very rarely do we use credit and when we’re doing it as a business building technique, we never use those things. We almost never need to have credit or down payments at all.
Joe: If you’re looking for long term wealth and long term investments, that’s a whole different thing. And you’re going to do that with your business, too, but with most people that are starting this process, they want to create a business that creates immediate cash flow that has money coming into their pockets right now. And that’s the stuff that we teach and you can do that with zero down.
Joe: My philosophy is, ‘If you can’t do it with *no money*, you sure aren’t going to be able to do it *with* money.’ So learn how to do it without money first – use the techniques we teach. Yes, I teach subject-to, I teach multiple mortgages, I teach land contracts, I teach lease options, I teach other types of seller financing and I show you how to structure the deal so that it makes the most sense to the seller.
Joe: A lot of people say to me, ‘Well, nobody’s going to accept a deal that’s a subject-to deal.’ That’s just not true – What you’ve got to do is find the people that are willing to do that. And these don’t have to be terribly motivated people. You have to find that person with that situation that needs to sell their property (which is almost everybody in the MLS). Now, we can make offers to everybody we talk to. It’s not going to make sense to everybody we talk to, but we can still make an offer to them.
Joe: So anyway, it does work. We can do zero down. There’s lots of techniques. If you’ve been getting my other articles or if you’ve seen my other videos, I’ve been talking about some of the specific ways we do it. But yes, you can do it – we are doing it, and I suggest that you don’t do it any other way. The risk is too high – if you’re going to put your money on the line or if you’re going to put your credit on the line when you’re first getting started, and you just don’t have the knowledge to do that, then what’s going to happen to you is you’re either going to lose money or you’re going to spend a lot of time on it and then not make very much money.
Joe: Why not spend the time, if you’re going to make mistakes, on things that *aren’t* going to cost you money and things that *aren’t* going to screw up your credit?
Joe: Alright, that’s the end of the first one. Good luck. We’ll see you next time.