3 Ways to Buy a House with No Money Down By Jay Conner

Buying with no money down is one of the most profitable ways to make money in real estate.

Can you really buy real estate with no money down?

This was a question sent to me during a recent Free Coaching Friday live-stream over on Facebook. One of my viewers wanted to know if the idea of buying a house with no money down was real, or if it’s just “seminar talk” to get people to buy a course.

I’m happy to report that, yes, it’s real. Buying with no money down is one of the most profitable ways to make money in real estate. There’s a number of methods for real estate investors to go about this, but here are the three I recommend:

1. Buying Subject to the Existing Note
When you buy a house from the seller subject to the existing note, the seller transfers the title or deed of their house into your name or your entity’s name, meaning your LLC or land trust. You take control of the property and agree to make the seller’s monthly mortgage payments. This does not mean you are assuming the note. The note or the mortgage stays in the seller’s name. You are just agreeing to make payments on the seller’s behalf directly to the bank or the mortgage company who holds that note.

“Jay,” you may be asking. “Who in the world would be willing to sell me their house, leave the mortgage in their own name, and then depend on me to make their mortgage payments?”

Here’s the simple answer: A motivated seller.

A motivated seller is someone looking for fast relief. Either something’s wrong with the house, the seller personally has a problem, or both. This is a seller looking for debt relief who wants to get out from the house without seeing it go into foreclosure. They’re willing to sell their house without you having to give them any money.

2. Owner/Seller Financing
In owner financing, sometimes called seller financing, the seller carries back a note for you to make payments for them. This option is popular on free-and-clear houses.

If a seller has a mortgage, I try to buy subject to the existing note. But if the seller won’t sell to you subject to the existing note, we can do what’s called a “wraparound mortgage.” This is basically a second mortgage, where the owner will sell you the property, take a note back, and the owner still has the underlying mortgage in place.

3. With Private Money
This is my favorite way to buy a house with no money down. If you don’t know what a private money lender is or what a private money loan is, I understand. Eight years ago, this was all completely new to me, too. Today, I’m known as the Private Money Authority across the United States and Canada and Carol Joy and I have 44 private lenders and over $5 million we turn over on houses. With private money, not only do you bring no money to the closing table, but you also get a very big check when you buy.

Bottom line: Buying with no money down is one of the most profitable ways to make money in real estate.

— Jay Conner