posted August 21, 2003 09:07 PM            

1. Did you yourself have tried this method with Robert G. Allen,No money down?

2. Did you have to read anything on what ever he wrote?

3. How did it work for you?

4. What other methods did you use?(On anything else)

5. What's the catche?

I like to discuss futher with you about this,I'm looking for a chance into something and if this is all true(For I don't wanna ever get burned again)like to know how I go about doing it.

posted August 21, 2003 11:16 PM            

The methods of buying for no money down or little money down are shared by many authors. I've read most of them, even attended some seminars at one time. You can attend some of their seminars for free when they come to your town---just watch TV on Saturday and Sunday afternoon or late nights to find out who is giving a seminar. They will try to sell you their "course" but you don't have to buy and you'll get to associate with people who are open to money making ideas and operate outside the box.

You cannot get to where Randall is or where I am either without study---information is golden so prepare to read, open your mind and absorb the information that's already out there waiting for your discovery. The world of finance, real estate, the stock market and other investment vehicles doesn't work the way most people think it does.

I'm a Realtor, stay away from Realtors. Realtors will mostly tell you that property can't be purchased for no money down. That's true---for the sellers they usually represent because no one is going to turn their house over to you for no money down and pay the 6% Realtor fees to hand over their home to you plus pay the closing costs associated with the sale too.

You're looking for homes "For Sale by Owner" and the longer it's been on the market for sale without a taker, the better the chance is that the seller will entertain the idea of carrying the mortgage for YOU.

Yes, we have purchased property for no money down. Bought a 4 bedroom 3 bath tri level overlooking Fort Louden Lake of about 3500 square feet directly from the builder. Lived in the home for 7 years and sold it for $40,000 more than we paid for it. Now, get this, my wife (exxxx ) bought the home while I was in another state wrapping up our business affairs. She was almost totally uninformed about the process but was following a plan to identify and negotiate a no money down deal. She was a little scared at the beginning but I kept telling her on the phone to keep looking. In the end, she found 12 homes in the area she could have bought for no money down and she was a complete novice.

There is no catch. You can't lose money on a home you have no upfront investment in. You must find the home and then a renter or buyer to hand it off to after you've cleaned it up---if rented, the rent must cover the principal, interest, taxes and insurance with some left over for you. The renter(s) will make your mortgage payments for you while the loan balance goes down and the market value goes up creating more equity for YOU.

This is a reading list for you. You should be able to find some of these books at your local library. I recommend you start at the beginning and that means getting a copy of How I Turned $1,000 into $5 Million in Real Estate in My Spare Time by William Nickerson. If you can't find these books at the library, you can find them at amazon.com, used for as little as $2 each.
Nickerson's book is dated but the principals of getting wealth from real estate hasn't changed all that much. Some new wrinkles in financing your purchases have emerged, however.

You should also read carefully what Randall posted and be aware that any method that puts you in control of real estate without putting your own or little of your own money into the transaction gives you the opportunity to cash in quickly or at some point in the future. It also gives you the opportunity to make some monthly cash flow by either renting out the property for more than it costs you and/or making money on the interest rate difference of what it's costing you and what someone else will pay you. For instance, the monthly principal and interest payment on a $100,000 mortgage at 6% for 30 years is $599.56. If you bought that house and resold it, even for the same price but charged the new buyer 8% interest, the payment you would get is $733.77. That's $134.21 in your pocket every month for the next 30 years. How many of those deals do you have to do to have a very good income stream going for you?
That wouldn't be my deal though. My deal would be to buy a house for $100,000 that needs some cosmetic work in a neighborhood where similar homes are selling for $115,000 to $120,000. My cash flow suddenly looks like this. My principal and interest payment is still $599.56 at 6% interest but when I fix and sell that home for $115,000 minimum, the monthly payment the buyer pays me is $843.43 at 8%, if I sell it for no money down. In the real world, I would get enough down payment to at least cover my costs and give me the cash to fix up the next home. That's $243.87 per month over my payment to the original seller for the next 30 years. How many of those do I need? AS MANY AS I CAN FIND because once the deals are done, the only thing I have to do is collect the payments and pay the original seller. If my buyer defaults, I take possession and put the house back on the market at an even higher price because of rising property prices. This is called a "wrap around mortgage" or "contract for deed".

You'll be shortchanging yourself if you don't read every book on the following list and the glossary in the backs too because there are some terms you are going to need to know.

Real Estate Money Machine: Real Estate Cash Flow Formulas That Really Work
by Wade B. Cook

How to Build a Real Estate Money Machine: An Investment Guide for the Nineties
by Wade B. Cook

101 Ways to Buy Real Estate Without Cash
by Wade B. Cook


How to Build a Real Estate Money Machine: An Investment Guide for the Eighties
by Wade B. Cook

Are You Dumb Enough to Be Rich? The Amazingly Simple Way to Make Millions in Real Estate -- by G. William Barnett II, Robert G. Allen

Nothing Down 90s R -- by Robert Allen (Author)


The One Minute Millionaire: The Enlightened Way to Wealth
by Mark Victor Hansen, Robert G. Allen


William Nickerson How I Turned $1,000 into $5 Million in Real Estate in My Spare Time

Albert Lowry How to Become Financially Independent by Investing in Real Estate

Hope this helps.

jwhop

posted August 21, 2003 11:58 PM            

OK,now here's the kicker,I don't know if you would have any kind of information on this,but I'm willing to give it try...

posted August 22, 2003 08:25 AM            

jwhop, %6 realtor fee?? Only the pricest of homes here pay that (250,000) & up. The average home here goes for $160,000 & thats with 3 or more acres & the Realtors fee is usually %3-%4.

posted August 22, 2003 09:12 AM            

You`ve got some sharp guys sharing advice and I`d sure take it in and wella, you`re the next knowflake millionaire

I`m being nosey cuz there`s solid advice here that I`m interested in, so I`ll tiptoe thru here and listen . Any questions you ask will be a benefit to those reading.

posted August 22, 2003 01:21 PM            

Ever wonder why some people are rich, (through their own efforts) and others aren't?

You've just given at least 3 reasons for not getting started.

1. You don't know if any of the no money down systems will work in your area.

2. You don't want to get "stuck" with a "crap hole".

3. You want to cover every detail before you even begin to investigate the possibilities.

This is not the road to wealth. The wealthy take risks. The wealthy understand there is a price to pay for knowledge and that knowledge is the key to wealth.

I tell you how to get the knowledge for free or as close to free as it gets and you talk in terms of pitching the books in a few months. What do you have to lose---except some time?

The difference between the rich and the poor is that almost every poor person would tell you it can't be done. Almost every rich person who made their fortune by their own efforts would tell you to go for it. There are more millionaires in America who made their fortunes in real estate than any other vehicle. Trust me, they didn't get rich in real estate by doing 20% down deals and financing the transactions through institutional lenders.

Since you seem reluctant to take the first step to arm yourself with the knowledge of what to look for and how to buy it/control it, I don't know what else to say to you---except you're the only one who can take that first step.

Hi juniperb

We have Realtors taking listings for 3 and 4% commissions here too. I don't---ever. It costs me money to sell someone's home in addition to the marketing systems I have set up and the time involved in selling and carrying the transaction through to the closing. There are a lot of expenses associated with being a professional Realtor.

So, when I have a seller tell me that Joe Blow from XYZ Realty will list their home for only 3%, this is what I tell them.

If you list your home with Joe Blow from XYZ Realty for a 3% commission, you should first make sure Joe Blow is the most effective salesperson in Pinellas County because Joe Blow is the only one who's going to be trying to sell your home. The other 3500 professional Realtors in Pinellas County are going to ignore your listing which makes putting your home in the MLS a waste of time. Why should they bring their qualified buyers to your home to take a cut in their commission?

The standard Realtor fee is 6%. Joe Blow allowed you to negotiate his Realtor fee down to 3%. Sounds to me like you're a better negotiator than Joe Blow. Are you certain you want a Realtor like Joe Blow who couldn't even protect his commission from you negotiating the sale of your home with other Realtors and home buyers. If Joe Blow couldn't protect his commission from you, what makes you think Joe Blow will be able to protect your sales price when he's negotiating the sale of your home?

jwhop

posted August 22, 2003 03:10 PM            

The one you just mentioned is excellent and you can sweeten the pot for the seller, (only if necessary) by offering a 3, 5, or 7 year balloon payment for the balance which gets the seller his/her equity and cashes him/her out---but after the point where you have made the payments to establish your credit so you can obtain traditional financing.

There are incredible deals floating around for sharp eyed buyers---even if they're only looking for a home to live in. A non traditional buyer may get 10 NO answers when they approach sellers with a no down or lease option/purchase offer----but they only need one YES and in any given Sunday paper, I could find at least 5 for sale by owners offering lease option/purchase, owner will carry terms.

I just now ran a search through the Multiple Listing Service for Pinellas County. The criteria I used was: At least 3 bedrooms, 2 baths, 2 car garage, price up to $1,000,000, at least 1200 square feet of heated and cooled floor space, terms, lease option, lease purchase, private money mortgage--- (seller will carry financing). I got 34 hits.

Prices ranged from $140,000 to $799,000. Square footage ranged from 1325 to 4850. These are all very nice homes, (1) I checked is on Treasure Island and is on Boca Ciega Bay---yep, it's waterfront, 5 bedrooms, 4 baths and 3100 square feet for $769,900.

The deals are out there just waiting for a knowledgeable buyer to make the right offer that takes the sellers needs into consideration.

posted August 22, 2003 07:09 PM            

I'm not trying to contest with you,no matter how your trying to look at it. I'm just asking simple questions,that's all. I never heard of anything like this before and I'm interested,I just want to know if their's any downfalls to the side and what do I do if their is.

posted August 23, 2003 01:16 PM            

A search of the Scranton, PA Library system, which is where you say you are, revealed they have some of the books on the list I gave you. They also have some others. This is a link to the Scranton, PA Library online.
http://www.albright.org/

332.024 COOK 1997

Wealth 101 / Wade B. Cook
Cook, Wade.
2nd ed.
1 copy available at SCRANTON in STACKS


332.63 COOK 1997

How to pick up foreclosures : a step-by-step guide for getting super discounted property before the auction / Wade B. Cook
Cook, Wade.
2nd ed.
1 copy available at SCRANTON in STACKS


333.33 COOK 1996

Real estate money machine : real estate cash flow formulas that really work / Wade B. Cook
Cook, Wade.
Rev. ed.
1 copy available at SCRANTON in STACKS


332.6324 COOK 1985

Real wealth / Wade Cook
Cook, Wade.
1st ed.
1 copy available at SCRANTON in STACKS


650.12 HANS 2002

The one minute millionaire : the enlightened way to wealth / Mark Victor Hansen and Robert G. Allen
Hansen, Mark Victor.

3 copies available at SCRANTON and DALTON


332.6 ALLE 1990

Nothing down for the 90's : how to buy real estate with little or no money down / Robert G. Allen
Allen, Robert G.
New rev. ed.
2 copies available at SCRANTON

Make no mistake Ozonefiller, I never care more about someone else's success than they do. So far, I've done more than you've been willing to do.