How to Find Zero Down Properties
If you read the real estate ads carefully every Sunday in a large-city newspaper, sooner or later you see an ad saying:
0 DOWN 3 br/2 bath beauty in XYZ Town
Call xxx-xxxx for full info. Own your own home!
Now you may not find such ads in your hometown paper. Instead, you may have to look at ads for properties in nearby towns. This is okay for most people
because the travel between towns is tax-deductible when you're checking on your income property. Zero-down properties
may be for sale by:
- Banks.
- Mortgage companies.
- Credit unions.
- Governments—federal, state, county, city.
- Private sellers wanting "out" in a big hurry.
And when a sale is offered at zero down by such sellers, it often means you get the property:
- With no closing costs to pay.
- With no down payment to pay.
- With no legal fees to pay if the seller's attorney represents both sides.
Are there any negatives for you with zero-down seller-financing deals? In general: no, there aren't any negatives. However, take my advice and take these
four precautions when buying seller-financed property.
1. Hire a real estate attorney to represent you; it's the safe step to take for every property you buy and you will never regret it!
2. Figure—in advance—if you can make money from the property renting it out to reliable tenants.
3. Buy—for zero down—only properties giving you a positive cash flow (PCF) every month of the year.
4. Be certain to have the property inspected BEFORE you buy so you know what repairs, if any, you'll have to make before you can rent it out.
Over time, I've collected zero-down ads from papers around the country. Why? To show
that such properties really do exist.
I'll be glad to show you copies of such actual ads to subscribers of my newsletter, International Wealth Success. The ads—of course—will show properties that
most likely will have been sold. But the ads will give you the flavor of actual, real-life offers you could have looked at. Both the name and date of the
paper are given.
Other facts about zero-down properties you should keep in mind are these interesting ones, Zero-Down Property Facts to Keep in Mind:
- You must be very cautious about zero-down properties you select. Look at several before making your choice.
- Look for properties having at least 2 bedrooms and at least 1.5 baths. Why? Any houses with fewer bedrooms or baths will be hard to rent.
- Never accept a substandard property because it is selling for zero-down. You could be getting into an endless drain on your income because such
properties may be hard to rent to top-quality tenants.
- Seek properties having at least two parking spaces for autos. Why? Because with today's two-worker families, both people have cars and need space to
park.
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