Wealth-Coaching

In Donald Trumps book, The Art of the Deal you’ll discover that he made his first real estate deal when he was still in college and it was a no money down transaction.

You may be thinking, "Sure it was nothing down because he was already rich but I could never do that." If you are thinking this, you are mistaken.

Money Magazine devoted an entire issue to Real Estate investing just this past June. They handled all sides of investing and this issue was pretty exciting to read. The followed some investors around the country and reported the details of their nothing down deals.

It’s no secret that people have been doing little or no-money-down real estate deals for years. The information for doing these types of deals is well documented.

Let me give you a few details you should know about doing nothing down deals.

The number one thing you have to remember about doing no-money-down deals is buying below market value. How is this done?

Well there are numerous of reasons this is possible. For example,

• people get themselves into financail trouble and need to unload thier property.
• Circumstances beyond control dictate that other people sell their property below market value, like getting transfered to another state, or needing to sell there property for medical bills or business opportunities.
  
• Others inherit property and want to cash it in as quickly as they can.

You see the list could go on forever, because everyones circumstances are different.

But the lower under market value you buy the home the more leverage you get to make a nothing down purchase.

A good example, is Sheri from Washington, she and her husband have been taking advantage of forclosure property. Earlier this spring she purchased two properties in Arizona. One she purchased for $8,000 below assessed value and got it for $1 over opening bid of $188,700. She went into this home and did some painting, replaced soem carpet and put in some new appliances and flipped the property in one week for $276,000.

She will clear $25,000 after expenses.

The second property that she got for no money down needed more work but because she had purchased it at the right price, far under market value, she will clear $35,000 after repairs.

So on two deals in less than a month Sheri and her husband cleared $60,000.

Does everyone make this kind of money on  every real estate deal. Certianly not. Other people do deals and rent the property out and take in a monthly residual income while they wait for the property to appriecate in value. They can hang on to the property for as long as they like as it pays for itself while it’s apprieciating.

According to a Money Magazine article housing prices rose 14% up from the previous years 8% increase. Do the math…. 22% appriceciation in just two years.

There seems to be a lot of talk about a housing bubble, but the analyst in the Money Magazine article weren’t recommending anyone panic yet. They forsaw housing prices continuing to climb and if the bubble burst in some areas they say values may adjust downward 10%-20%.

So if you’re following the number one rule for no-money-down deals and buying undervalued properties you can still make a killing in real esate!

To learn more about real estate investing and how you can get involved click on the link below.