Amelia Wong & Wayne Mason
Amelia Wong & Wayne Mason

Amelia Wong & Wayne Mason
Relocation Specialist | Silicon Valley Homes Expert Advisor | Real Estate Investor

5 Ways to Buy an Investment Property with Low or No Money Down

Real estate usually requires money — to buy investment property, you must put down significant amount of money.

You can put down 20% on the purchase of investment property but you will have to wait until you have more money to invest in the next opportunity. It is a conservative way of investing.

There is a another way. Please note “Low or No Money Down” is strictly referring to your own cash.

Most successful real estate investors get creative on structuring their deals including the financing.

5 Ways to Buy an Investment Property

  1. Seller-Financing
    • Seller-financing is a popular type of 100% financing
    • You can uniquely structure the loan terms
    • Gives you time to renovate the property
  2. Wholesale for Short Term Income
    • Wholesaling is another popular “no-money down” method.
    • Similar to flipping, wholesaling is a fast real estate investment strategy, but the wholesaler makes no repairs.
    • The wholesaler contracts with a seller and then advertises the home to potential buyers.
    • When the wholesaler assigns the contract to the buyer, the wholesaler makes a profit between the contract set up with the seller and the amount the buyer pays.
    • The wholesaler must find a buyer before the contract with the seller ends.
  3. Joint-Venture (Equity)
    • This venture is with two parties contributing cash for the down payment and getting a bank loan for the remainder
    • You can contribute time instead of money to the joint venture
  4. Private Loan
    • Private loans are loans between a private lender and you.
    • You can negotiate the terms to fit your deal
    • You can negotiate no payments for a short-term private money loan for one year.
  5. Secured Line of Credit
    • Use the equity in your current primary residence
    • You could get a home equity line of credit (HELOC)
    • These loans have low-interest rates
    • The payments are interest-only payments.
    • Use a strategy called Velocity Banking to reduce your Interest costs.

Bottom Line

You can buy property with very little or no down payment if you look hard enough. To grow a real estate business, you need multiple sources of funding.

Disclaimer: The information provided on this page is for educational purposes only.  Amelia Wong and Robert Wayne Mason, Inc. makes no warranty or representation as to the accuracy, completeness or reliability of this information. Please be advised that this content may contain errors, is subject to revision at all times, and should not be relied upon for any purpose. Under no circumstances shall we be liable to you or anyone else for damage stemming from the use or misuse of this information.

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