In real estate the bigger the deal the bigger the profit. Instead of focusing on many small single family homes why not put all your effort into a few commercial real estate deals where the profit can be huge.
Once you understand how the financing works buying the property will be easy.
1. Research - The best way to buy commercial property with no money down is through research. The bigger the potential discount the higher the potential loan. The financing will depend mostly on the appraisal of the real estate itself. The appraisal is done by comparing similar properties that have sold in the last 6 months – year. With commercial appraisals it is hard to get the true value since there are few properties that are similar. This creates the potential for a high appraisal since the appraiser is putting their own value on the property. Appraising is more of an art than a science so appraisals do come in high many times.
2. Offer - Since many commercial properties require 30% or more down to purchase a good way to get around this is by having the seller finance the 30% using a second mortgage. The bank will finance the 70% first mortgage with the seller financing the second mortgage at 30%. This gets you a property with 100% financing. The closing costs can also be financed in with the loan if you submit the offer as such.
Getting big properties with no money down is not only easy but very profitable. As you do more of these deals they get much easier to do.
