How to Buy an Apartment With No Money Down
Today I want to tell you how I bought a building with nothing down.
And I'll start my story with worms.
I don't like eating worms.
Fact is, I prefer cake.
But if you are fishing, you use worms, not cake.
Use the bait that your market, the fish, like to eat.
I was in the preforeclosure investing business and I ran my own mortgage company.
We mostly worked with private investors and creative institutions who bought the loans we originated.
I marketed using direct mail and offered loans fast to people who had bad credit but who still had equity in their house.
So they responded to my marketing because they really wanted to borrow yet more clams.
Marketing should offer what your prospects want, not what you want.
They would call and we'd interview them and find out if they had any equity.
Yes, in those days you needed equity to borrow on.
If they had some equity but we couldn't do the loan, we'd suggest buying their house.
I bought a lot of houses and arranged a lot of loans.
Along the way, my partner and I were offered an empty lot. We looked at it and decided to buy it.
Didn't want to put up any money. So we signed a note carried by the seller and the note gave us permission to get a first mortgage and subordinate the seller note.
This is a major trick, getting a seller to carry back a note and getting them to agree to subordinate.
We did put up a few bucks but not much.
Next stop was a construction loan. Since we had paid a good price for the lot and the construction loan was in "first position" due to the owner subordinating the note, we were able to get a good loan.
Never easy, this borrowing business. But worth doing…
Anyhow, we completed the building and did a permanent loan and got cash out. We actually pocketed a good amount of money AND had good cash flow when the we rented up the building.
Tricks and techniques like this, if you understand them and are willing to take the action step, can make you a millionaire.
And that brings me to a new training I'll be releasing soon. You see, the real money today is going to be made in solving the problems of lenders and investors and owners.
It's going to be in distressed commercial real estate.
Why? Because there are HUGE problems in distressed commercial real estate. And where there are huge problems, there are huge opportunities.
Please leave a comment or question about distressed commercial real estate, or buying an apartment with no money down. I'll try to answer. Thanks!
Filed under Blog by Richard Geller
Comments on How to Buy an Apartment With No Money Down »
I am having a little trouble viewing videos. I would like to know if you have PDF files available. I am interested in knowing first about hedge funding. What it really is, how it works and how to use it in real estate deals.
Hedge funds are private partnerships. Who invests in them? Pension funds. Insurance companies. Universities who have to invest their endowment monies.
Private equity funds are pretty much the same as hedge funds, but hedge funds have a wider range of investments they are allowed to make.
Both are great sources of funding right now. See my video at http://www.CommercialFundingMillions.org and get on the list if you aren't already, as we'll be launching a killer training on how you can work with hedge funds and get serious funding.
warmly
–Richard
Would appreciate it if you let me know some more about project X. Thank you Charles
I liked the Video but would like to know how my group can work with your group to aquire Commercial properties that we are focusing on around the country,please feel free to contact me with any suggestions you may have.
We are really looking forward to buying aprtsments that are bank owned and have insight to them via serveral realtors and REO companys that we work with thanks in Advance
Marvin Fox..
Hi Marvin, thanks for your comment. I think my team would be able to provide funding. We have done FAST funding for experienced apartment operators, for purchase and rehab and turnaround. It's fun to get this money out there and see what a good investor can do.
warmly
–Richard
Richard is telling the truth about buying apartments. I've found deals for investors, was deeded percentage ownerships, was paid as their agent, and I closed over $50,000,000 in combined value, in the San Francisco Bay Area and Sacramento California markets….
2010 is the start of a new time for acquisitions in these markets.
MikeJaegerLive
Hello, Richard great video I have watched about 6 of your video's so far And I seen a return comment you posted about doing funding I would like me information on the two if I could I'm looking to purchase several Apartment and need funding on them so if you could give my a e-mail or something to make contact with you.
Thank you
Don Davis
I found your information very informative. I knew about subordination but didn't put it together for commerical real estate. Now, I know the magic question to ask for the next apartment deal that comes my way. Thanks.
Suzanne Matthews
Ok I'm back this what I think if you owe that money and find your self now in the possession that you can pay it and the banks or creditor are hounding you don't sweet it why because they can't get blood from a turnip, as so because times are no hard for every one now I'm not saying don't pay what you owe if the creditors don't work with you after we just balded them out then to heck with them you must not let this run you down because if you do your life will never be the same along with your marriage so stop right now and regroup ( think about this what can they do if you don't pay) put this on your credit so what it easy to remove now if you know where to go to. it just takes a little time and if you have the creditors calling you just tell them this( I don't conduct Business over the phone send it to me then I will reply to it ) now reminder this if your account has been sent to collections a 3rd party collector by law they don't have the right to talk to you about this because you made the deal with the first party not the 3rd. and if the 1st company has sent it to collections that means it been written off from the first company and they have been paid by tax credits.
So stop sweeting it
Hi Richard,
Are you talking about a free and clear property ? If so what to do if it has a lone?
Thanks.
Mike
Only for free and clear properties, Mike.
warmly
–Richard
It's very helpful. Thanks for sharing. Carol
Very good information so far. My question is this: what do you do about earnest money for commercial deals, Richard? I have found a 100% lender with no fico requirements and several worthwhile apartment deals but I don't have the funds to put in escrow until the deal closes.
How would you address that scenario?
I'd probably raise a bit of private money. That would make the most sense. Short term money, 30 day or 60 day money. This is fairly easy.
warmly
–Richard
I was unable to listen to the entire video, since the audio of the viedeo kept shutting down or pausing every 2 seconds. In other words it broke up frequently, therefore I was not able to hear complete sentences. Please tell me or send me the written version. Thanks.
Richard:
Thanks for the quick response! How does one go about raising private money? I was once in contact with a gentleman who worked for a lender that supposedly loaned earnest money for deals, but that company eventually went out of business. I have yet to find another (legitimate) lender to loan earnest money, so raising private money or having your own funds would be ideal.
Can you recommend any particular methods for raising private money?
Richard,
I have a small residential real estate project I am working on in North Carolina. I am looking to secure financing for this project. If I share the details with you could you please let me know if you have any interest in seeing what options, if any, are available for my specific needs. Or if you want to pass my info onto one of your students as an alternative I would be open to that as well.
Interest in your course, Commercial Funding Millions, prompted me to check with you in regards to my needs.
Sincerely,
Marty
Very powerful technique. I was not sure what it was called.
Richard Roop uses this same method buying free and clear houses.
Would you care to hazard a guess as to how long this window of opportunity will last regarding the commercial real estate "meltdown" ?
What template do you use in your website
Hello Don,
How can a person get stuff off their credit, like you mentioned in your msg. I Thank You in advance for the info. Please respond a.s.a.p. Thank You & God Bless, Rose
Hello Maxwell,
I have been looking for a 100% lender with low or no FICO requirements for a fairly small property 6 rentals, they need some work and I know some lenders will loan this also if there is equity there!! If you would PLEASE email me the lenders info. I would be VERY GREATFUL!!!! Please respond a.s.a.p. Thank You & God Bless, Rose
Great info, thanks for useful article. I am waiting for more
You post awsome posts. Bookmarked !