Have you ever seen those infomercials about buying houses with “No Money Down?” They are really well done.
They have all kinds of people offering great testimonials about how they have gotten rich, buying rental properties, with absolutely no money out of their pocket. You see this guy, standing on a street corner, talking to someone, and he says, “I own that one,” pointing to a beautiful colonial. “I also own that one next to it, and the one two doors down, and I’ll be closing on the one directly across the street from it, next week.” He then assures us that he has purchased 17 homes in the last eight or ten months, with zero money down on the properties. Plus, in many cases he’s also paid no closing costs.
And, let’s not forget, this same guy is grossing tens of thousands of dollars monthly, and his net worth is nearly one million dollars. So, he says.
Can you get the money you need by refinancing your
Click HERE for complete report
Now, all of this NO MONEY DOWN looks wonderful,
so when the person selling the course that will teach you
how to do this, at a nifty price of just $297.00, speaks,
you are glued to his every word. “Real estate is the safest
and fastest way to make money, today,” the expert will tell you.
So, can this no money down really be done? Can you purchase houses with no money down? Can you become a landlord in as little as one month’s time and start raking in the cash from those rent payments? The answer is an absolute “Yes.” It can be done, and I am proof positive, because I’ve done it. The question you should be asking yourself is not can I buy real estate with no money down, but should I?
Rarely is the whole truth anywhere to be found in infomercials, especially when the advertising is about No Money Down real estate programs. The infomercial makes the idea and the program look so easy that any child could handle it. It makes it seem like every American should be doing it, and we’d all be millionaires. But every American is not doing it, and many of the ones who are doing it not only are not getting rich, they are actually going broke. The infomercial won’t tell you this. That’s why I’m here.
Cheap Land can make you RICH! Get your next house at a HUGE discount. Start your own real estate empire. Click HERE and let us show you how to get in on this bonanza.
YOU can help the seventy Five Million people who are suffering from being overweight, underinsured, pregnant, unable to afford insurance, or afflicted with pre-existing conditions that NOBODY will cover. You can really help. Click HERE and tell your friends all about it.
Now, let’s get started with the truth about buying real estate with no money down
and the truth about being a landlord. The first thing you need to know is that they
are both very bad ideas. Let me illustrate by using my own experience in these areas.
I started buying rental property nearly 10 years ago. The first property I bought was a deal orchestrated by some real estate con artist, who told me I needed just $2,000 to take ownership of this home and, in the process, help out a woman who was about to be foreclosed upon.
In two years, she would clean up her credit, refinance the loan on the house, and I would make $10,000. Sounded good to someone who was quick to buy into anything that returned big dollars in a short time.
This worked for the first year, as the woman paid on time, and I pocketed an extra $100 monthly. Later, though, things began to collapse, as the house began to need repairs, all of which the woman couldn’t afford, so I had to pay for them. I put nearly $5,000 into the house in a four-year period. When I was finally able to sell it, I didn’t quite make back what I had put into it.
Meanwhile, I was eager to overcome this problem by adding many more. A slick mortgage broker got hooked up with an even slicker real estate prospector, and the two of them convinced me that they had a way I could buy houses rapidly, with absolutely no money out of my pocket. Although my experience will probably be enough to enlighten you to the pitfalls of this model and of being a landlord, let me say that I can’t emphasize enough how dangerous buying property with no money down is.
In six months time, I had purchased eight houses – many with loans from the same wholesale lender. These lenders should have been concerned with all of the debt I was building, but they kept approving loans, based on my good credit and rents covering the mortgage payments. One of the biggest problems, which I was not experienced enough to detect, was that most of the rents were just $50 to $100 above the mortgage payment.
“Don’t worry,” the investor/ hustler would say. “You’ll make all your money on volume. We’ll get you into 30 or 40 houses, and you’ll be pocketing $4,000 to $5,000 every month.”
As you might imagine, my mind raced. I was making the huge deposits at that very moment. My bank account was fattening up at breakneck speed.
Buy, or Sell your property with our FREE Real Estate Listings
If you are in sales, and most of us are in one form or another, this book can mean the difference between feast and famine. With the economy like it is there are a lot of people wishing they could sell better and feast more often. Making more when others are making less is a great feeling, I can tell you.
This is what people who buy houses, using the No Money Down plan envision
happening. After all, if you can buy one house with no money down, why not five
or ten or fifty? For some reason – the vision of the dollar sign, most likely –
I failed to seriously consider the maintenance of these houses, the possibility of
missed rent payments, and the chance that renters might actually stop paying,
altogether, forcing me to evict them – a time-consuming and extremely costly undertaking.
As you may have already guessed, all of these things happened to me, after I had amassed 26 rental properties. In fact, oftentimes, all of these problems happened in the same month. Now, for awhile (when I had about 10 houses), if one person failed to pay rent, I could cover it with the nine other payments. But when two, three and sometimes even five tenants didn’t pay in the same month, it was devastating to my business. I had to go to my business account and pay up to $3,000 at a time in mortgage payments, with no income to cover it. Plus, I had to pay a property management company to get my tenants to pay or to evict them.
Soon, this became the norm, not the exception. There were constant problems at my houses. Unhappy tenants led to poor upkeep of the property and even more maintenance problems. About one year, after I had amassed 26 houses, I was having problems with roughly 10-15 houses and/or tenants each week. I was evicting at least two tenants each month, and approximately four to seven tenants were either behind on rent or not paying at all. Promises were made, payment plans arranged and few, if any, ever followed through.
It didn’t take long for me to realize that this was no way to make money in real estate. Consequently, I got rid of these houses as fast as I possibly could. There were plenty of buyers, willing to take over my headaches, because they had the ability to make it work, they believed.
Have you ever felt like you were the only one on earth that doesn't have your own web site?
You can start your own web site and watch the money roll in. The truth is, making a web site is a whole lot easier than most people can imagine. If you want to make a regular passive income from your websites, this Google's Adsense™ program may be just exactly what you are looking for, but only if you use it right.
In 10 years of being a landlord, I lost thousands of dollars and likely took some years
away from my life with all the stress I had endured. So, whatever you do, avoid the
No Money Down Trap. There are much better, still inexpensive ways to make money
in real estate.
Mark Barnes is the author of Winning the Mortgage Game:
Beat the Bankers & Get Rich Doing It and several special
reports on home loan and investment real estate finance.
He also publishes two weekly ezines.
Learn more at www.winningthemortgagegame.com
No Money Down Book..
Funding for No Money Down Properties
Lines of Credit Makes it EASY!
How To Buy Land At Tax Sales * Sample Tax Land Bargains * Make A Fortune, without investing money * Free Land? * Foreclosures Made Easy * 30,000 foreclosure listings * Is There ANY free desert land left? * The No Money Down TRAP! * Be Your Own Banker * Make Sellers Beg You To Take Their Property! * Bargains from the Bureau of Land Management * Credit Repair * Search for Cheap Homes in Your Area * Grab Your Own Domain Name * Do Better Drive By Inspections * Real Estate Help * Real Estate Tools * Real Estate Gurus Ahead * The Money Train Principle * Build Your Own Web Site * Tax Property Agencies * Real Estate Demographics * Cover Yourself With a Lease Agreement * Interest Only Mortgages * SUBJECT TO Real Estate Deals Explained * Short Sales Negotiations Explained * Basics of Real Estate Investing * Explore EVERYTHING that Tale Wins has to offer *
|Write Better||Learn the Basics||YOUR World|
| Tips for writing better |
Books for writers
Learn how to Hyphen-ate
Easy Research for writers
Big Screen writing
Proposals for Nonfiction
Free Plots to use
Ring in Writing Assignments
Read My News
Post Your News *
Writer's Showcase *
Using transition words
Abe Linkin Page *
Writing for Kids *
Protect Your Work *
Building web pages *
Are you feeling hopeless?
How to Avoid the High Cost of Conventional Promotions and Still Sell More Books.
Don't be Buried Alive!
Better Query Results can be YOURS!
Miniature Horses,, how would you rewrite this article?
Settings that take your breath away?
Get Your Own FREE Business Cards
How and Why you need a copyeditor.
Specialty Niches on the web could be YOUR step up.
What the heck is a meme?
Writing In Your Sleep
The Tale Wins Affiliate Contract
Potential Earnings Disclaimer
Leave a message in our guestbook.
Dealers Wanted * Help * postcards for writers * Free Software for writers * Practice Makes Perfect * Learn to use the new Talk and Type software. * Piggyback the Hollidays for Free book publicity. * Create a bottomless notebook to spark new story ideas any time you need them.
|Our Guestbook * Hit it another lick * Stop SPAM! * There is only ONE WAY Sex will Sell on the web. * nonfiction titles * fiction titles * Free Report, Five Reasons To Check Your Credit Report. * MY bookmarks. * Simple Calculator for writers. Improve your web site's search engine ranking * Add your site URL to my site * |
Make Money From Home
STOP THE SPAM. Opt OUT of the email loop. Quit being Buried Alive
Ebooks are for Amateurs
Keep up with all your new articles and freebies.
Have some of your favorite ebooks quit working?
Click HERE and let me GIVE you a secret that will: Fix Your Ebooks.
Travel the World, and get paid for it.
Copyright © 2006 by
Earl H. Roberts