No Money Down Real Estate Possible But Not Profitable in 2013?
Looking into real estate investing ‘gurus’ education programs and wondering whether no money down deals are really possible in 2013?
They are possible, even plentiful in the current housing market but that doesn’t mean that they are all magically profitable or the best move…
No money down real estate deals continue to be down every day by investors, but there are pitfalls and a lot comes down to whether you are using a buy and hold, fix and flip or wholesaling strategy.
There are absolutely many advantages to no money down real estate and the appeal is completely understandable. Not relying on your own funds or lack of them to invest means being able to get in and start making money faster, lowering or essentially eliminating risk, maximizing ROI and increasing the ability to grow faster.
However, it is critical to understand that just because you don’t have to put any money out of pocket doesn’t automatically make it a great deal or the best deal. You must pay attention to what you are getting and how good of a deal it really is, how sustainable and profitable the opportunity is and what the potential downsides are.
Many property owners are offering seller financing today which can bring a multitude of incredible looking opportunities but beware of the pitfalls. What’s the actual price you are ultimately paying compared to what else is out there? How long will it be before you can sell for a profit, what does the cash flow look like in the meantime? What’s the financial situation of the seller, and can they even really commit to what they are offering or you need?
Perhaps most importantly; are you sticking to the golden rule of making your money when you buy and avoiding speculative ‘investing’?
Those sticking to wholesaling as a strategy can enjoy profitable no down payment real estate deals and stay in the green. Adopting a wholesaling strategy means instantly turning over properties for profits.
Still if utilizing seller financing as part of the equation it is important to make sure the numbers work to avoid wasting time on dead beat deals. However, you won’t need to rely on seller financing or have to worry about many of the factors that plague others. With a little research you’ll find that you can use plenty of other sources for funding your flips from private mortgage investors to hard money lenders and transactional funding.
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