The effective non-use of cash

[Mr._johngalt]

Many have expressed doubt about this, which for brevity
I will call "no money down". I have posted many times about this,
mostly regarding real estate- Those guys/gals hawking
the audiotapes/videotapes/seminars are right. You don't need any cash. Just brains and cojones.

Anyway, here are examples from real life (my life). In other words,
no theory.......this stuff really happened.

Maybe you have an old car, motorcycle, lawnmower, boat, or maybe
that lot in Arizona you bought in 1970. Use it for partial payment
on income producing real estate. Or, find a "don't wanter"
who will finance your downstroke and pay the closing costs,
or at least finance that as well (you can use a traditional lender for the rest....no out of pocket). Or, just have the seller finance everything 100%. It can be done. I've done it. Truly, the possibilities are endless. I have mentioned this before, but
when I bought my manufacturing co. in 1990, I also got
a 16,000 SF plant, an apartment, 2 retail buildings, and 120 acres
of raw land. Probably should have liquidated immediately and
converted to a real estate investment company. One more tip.
If you buy, always close on the first of the month. That way
(even if you put -0- down) you get all the security deposits
and one month's rent from everyone simultaneous with the closing.
On a big deal, this can be a lot of money.

Good luck.

JG

 

[Beachbumz]

hi JG!

When I bought my first beach house (still haven't figured out how I did it), I needed a $10,000 "gift" from my mother-in-law. No problem there, she was happy to do it, except, she didn't have the money. So, I got a good friend of mine to loan her the money, I immediately repaid him with a credit line check to be cashed after closing. Everything worked like a charm.

When I bought, my 4th beach property, I had the cash for the down payment, but didn't want to use it. So, the bank verified my funds, and I brought a certified check drawn from a credit line on my 1st beach house to closing, no problem! 100% financing on a $380K property.

Beachbumz 8)

 

[Mr._johngalt]

hi JG!

When I bought my first beach house (still haven't figured out how I did it), I needed a $10,000 "gift" from my mother-in-law. No problem there, she was happy to do it, except, she didn't have the money.  So, I got a good friend of mine to loan her the money, I immediately repaid him with a credit line check to be cashed after closing. Everything worked like a charm.

When I bought, my 4th beach property, I had the cash for the down payment, but didn't want to use it. So, the bank verified my funds, and I brought a certified check drawn from a credit line on my 1st beach house to closing, no problem! 100% financing on a $380K property.

Beachbumz  8)

I know of no other small business where leverage is so easily and effectively utilized. You can control millions in property with little
or nothing out of pocket, but like I said it takes some brains and cojones.

JG