The No-Money-Down Myth
It is impossible to buy real estate with no money. It is not impossible to purchase real estate using someone else's money.
Even if someone were willing to lend you 100 percent of the purchase price of the property, there are still costs associated with acquiring the property. There are transfer taxes and recording fees that need to be paid. Maybe you won't be paying these costs, but someone will. Don't overlook things like casualty insurance. A policy needs to be purchased, and someone has to pay for that insurance. The point is that it does take
As a real-estate investor, you always want to use as little of your own money as possible to buy and sell properties. Holding on to your cash is always desirable.
Often you will make decisions about acquiring new properties based on how much cash it will take to purchase it. You are likely to pass on properties that will take too much of your cash to complete the acquisition. This holds true of properties in pre-foreclosure status and those that have been foreclosed.
You will need to use either your own money or someone else's to make your real-estate transactions work. Whether you can convince others to pay the required fees and arrange financing without any down payments will determine how little cash from your own funds you will need.
