The Truth About Purchasing Real Estate with No Money Down

It is unbelievable but true that it is very much possible to purchase real estate with no money down.  The technique which is being discussed in this article deals with purchasing real estate with no money down using discounted notes. It is an interesting method in which if you cannot do it as exactly, you can trade notes which were bought at a discount on the face value of the real estate.  Several investors have supported this idea which as per them is quite helpful when someone wants to purchase real estate with no money down.

The technique which can be used here is known as trading in real estate notes. The real estate notes which are purchased at a discount rate can be traded at the full face value in the open real estate market. This technique is an extraordinary method which can be used by investors starting to purchase real estate with no money down.

The homeowner of an original home needs to be convinced to take back a note on a property other than his own. Usually homeowners expect to have a mortgage on their own home. But they can be convinced by pointing out to them that by taking the second mortgage they have seasoned note with equity protection.  The note from the second mortgage is traded in the open real estate market at the face value rather than at the purchased value resulting in the value difference and hence enabling the middleman to purchase real estate with no money down.

Financially, it makes a win-win situation for all parties involved which are the original owner, second seller, bank, and the middleman who gets to purchase real estate with no money down. Everyone’s objectives are fulfilled by using the limited resources they all have access to. The middleman who brings them all together not only ends up purchasing real estate with no money down but also gets the additional cash in the process.

The deal closure happens quickly as all the involved parties get what they want without really going out of the way in terms of credits or loan.  The initiator of the deal gets to pick a home with equity and some additional cash which effectively achieves the goal of purchasing real estate with no money down as well as no further expected investment in the acquired asset.


Act now and read more about Purchasing Real Estate with No Money Down .