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The Book on Investing In Real Estate with No (and Low) Money Down: Creative Strategies for Investing in Real Estate Using Other People's Money
COMPLETELY REVISED AND UPDATED
Is your lack of cash holding you back from your real estate dreams? Discover the creative real estate financing techniques that savvy investors are using to do more deals, more often.
No matter how much money you have in your checking account, there is always real estate you can’t afford. Don't let the contents of your wallet define your future! This book provides numerous strategies for leveraging other people’s money for amazing returns on your initial investment.
Active real estate investor and co-host of The BiggerPockets Podcast, Brandon Turner, dives into multiple financing methods that professional investors use to tap into current real estate markets. Not only will you be able to navigate the world of creative real estate finance, but you’ll get more mileage out of any real estate investment strategy.
Financing deals just got easier—learn how to be a smart investor by using creativity, not cash!
Inside, you'll discover:
- The truth about no-money-down investing―Investing with little to no money down is possible, but it’s not about a step-by-step strategy. It’s about a mindset.
- How to get started investing in real estate―Looking for your first deal, but you have no money or experience? Learn the best strategies for getting your feet wet without paying thousands!
- Numerous strategies to mix and match―Creative investing requires a creative mind.
- How to attract private money, lenders, and partners―There are millions of millionaires walking the streets. Discover the best way to attract them to you.
- The ugly side of creative investing―Learn the downsides to all the strategies mentioned in this book, as well as tips for overcoming those problems.
- Strategies for wholesaling, flipping, rentals, and more―Find success no matter what niche you plan to use to build your real estate empire.
Is your lack of cash holding you back from your real estate dreams? Discover the creative real estate financing techniques that savvy investors are using to do more deals, more often.
No matter how much money you have in your checking account, there is always real estate you can’t afford. Don't let the contents of your wallet define your future! This book provides numerous strategies for leveraging other people’s money for amazing returns on your initial investment.
Active real estate investor and co-host of The BiggerPockets Podcast, Brandon Turner, dives into multiple financing methods that professional investors use to tap into current real estate markets. Not only will you be able to navigate the world of creative real estate finance, but you’ll get more mileage out of any real estate investment strategy.
Financing deals just got easier—learn how to be a smart investor by using creativity, not cash!
Inside, you'll discover:
- The truth about no-money-down investing―Investing with little to no money down is possible, but it’s not about a step-by-step strategy. It’s about a mindset.
- How to get started investing in real estate―Looking for your first deal, but you have no money or experience? Learn the best strategies for getting your feet wet without paying thousands!
- Numerous strategies to mix and match―Creative investing requires a creative mind.
- How to attract private money, lenders, and partners―There are millions of millionaires walking the streets. Discover the best way to attract them to you.
- The ugly side of creative investing―Learn the downsides to all the strategies mentioned in this book, as well as tips for overcoming those problems.
- Strategies for wholesaling, flipping, rentals, and more―Find success no matter what niche you plan to use to build your real estate empire.
224 pages, Paperback
First published August 13, 2014
961 people are currently reading
5128 people want to read
About the author
Brandon Turner
38 books366 followersBrandon Turner is an author, entrepreneur, and active real estate investor with more than 500 rental units and dozens of rehabs under his belt. He is the Vice President of BiggerPockets, co-host of The BiggerPockets Podcast, and author of four books, including The Book on Rental Property Investing and How to Invest in Real Estate. Brandon has also been featured in numerous online and print publications—like Forbes.com, Entrepreneur.com, and Money Magazine—where he enjoys showing others the power and impact of real estate investing and financial freedom. A life-long adventurer, Brandon (along with his wife and daughter) splits his time between his home in Maui, Hawaii and various other destinations around the globe.
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Displaying 1 - 30 of 141 reviews
June 12, 2017
I will preface this review buy saying that it was not reccomended to me nor did I go looking for it, rather the book was available in my audio library and I wanted something short before starting a much longer book. It did help that I (like i assume most other people) am curious about real estate investing.
So the first and probably biggest anoyance with the book is the almost non stop shilling for the owners website/service. It got to the point where anytime something was introduced or couldnt be explained suffeciently I knew I would be directed to the site at which point lo and behold the author tells me to check his site.
Once you manage to get past the constant shilling the book is aimed at the american market so you have to do a lot of mental gymnatics while listening to work out what products the author could be reffering to locally, if they are available at all. While a bit annoying it does at least provide you with some research that you can perform to get a better grasp of your local market.
The book will often admit it at various points while discussing the different chapters but too much of the content in this book is based on a best case scenario or some ficitonal world where everything is already in place and you just need to provide the money. This is actually one of the other core gripes with the book, seeing as one of the key things for everything to work in this book is getting a great deal, the author spends very little (if any) time setting you up with past cases or avenues where you could find these great deals. Rather its all hand waved away with 'you need to be creative'.
Those issues aside the book provides a super short summary of different avenues where you can source money from (basically work the system). Unfortunately most of these avenues tend to be banks , I say this because for religious reasons I avoid dealing with interest of any kind which excludes me from most (if not all) the options that they do end up providing.
In conclusion while the book does give you a few more books to go and read at a later stage, this book definitely left me not wanting to get into investing via real estate. If you are able to get past the hurdles of dealing with interest and you have an appetite for risk then this book may be a useful intro into real estate investing.
So the first and probably biggest anoyance with the book is the almost non stop shilling for the owners website/service. It got to the point where anytime something was introduced or couldnt be explained suffeciently I knew I would be directed to the site at which point lo and behold the author tells me to check his site.
Once you manage to get past the constant shilling the book is aimed at the american market so you have to do a lot of mental gymnatics while listening to work out what products the author could be reffering to locally, if they are available at all. While a bit annoying it does at least provide you with some research that you can perform to get a better grasp of your local market.
The book will often admit it at various points while discussing the different chapters but too much of the content in this book is based on a best case scenario or some ficitonal world where everything is already in place and you just need to provide the money. This is actually one of the other core gripes with the book, seeing as one of the key things for everything to work in this book is getting a great deal, the author spends very little (if any) time setting you up with past cases or avenues where you could find these great deals. Rather its all hand waved away with 'you need to be creative'.
Those issues aside the book provides a super short summary of different avenues where you can source money from (basically work the system). Unfortunately most of these avenues tend to be banks , I say this because for religious reasons I avoid dealing with interest of any kind which excludes me from most (if not all) the options that they do end up providing.
In conclusion while the book does give you a few more books to go and read at a later stage, this book definitely left me not wanting to get into investing via real estate. If you are able to get past the hurdles of dealing with interest and you have an appetite for risk then this book may be a useful intro into real estate investing.
September 21, 2018
This book is not only a must read for all real estate investors (especially beginners) it is worth reading again and again. As of this review I have read this book four times and implemented the strategies it contains. No money? No problem. It really is a lot easier than you imagine to purchase real estate with little to none out of your pocket. Example: I just bought a duplex for the cost of an inspection!
October 24, 2018
Most of the book is basic information if you're involved in the world of real estate, but there were a couple concepts new to me. Succinct writing and good examples make the information easy to remember.
February 14, 2024
Helpful, clear, accessible.
October 24, 2018
I have recently become a big fan of BiggerPockets.com. The content that is provided through the website is incredibly thorough and listening to any of the podcasts is even more encouraging, for me as a newbie.
Brandon has written this book for anyone who has been curious, or misunderstood about how to purchase a property with using either none of your own money, or some of it of your own, or more of it from someone else. There were strategies that I've heard of before but never quite understood it well enough until reading this book. I will admit that I'm not 100% comfortable yet with utilizing these types of strategies such as seller financing, lease-option, or a Master Lease Option, but I can definitely see how these are utilized in the right way create a win-win-win situation for everyone.
I received a copy of this book as a Pro Member Perk with BiggerPockets and I'd highly recommend the Pro Membership with BiggerPockets too.
As I read this book (rather quickly, finishing it in about 5 days), I felt as if Brandon and I were sitting in a living room and he was basically telling me how to invest in real estate with no and low money down. Nothing was too over the top, nor was there anything that was simplified too much.
One of the great things that I've heard Brandon say a lot on the podcast, and David Greene too is that it's good to have a few tools in your toolbox/toolbelt to use so that you're not limited in your ability to invest in real estate and become profitable too.
This book is a resource to refer to every so often and I'm glad that it was written for a new investor like myself.
Thanks Brandon.
Brandon has written this book for anyone who has been curious, or misunderstood about how to purchase a property with using either none of your own money, or some of it of your own, or more of it from someone else. There were strategies that I've heard of before but never quite understood it well enough until reading this book. I will admit that I'm not 100% comfortable yet with utilizing these types of strategies such as seller financing, lease-option, or a Master Lease Option, but I can definitely see how these are utilized in the right way create a win-win-win situation for everyone.
I received a copy of this book as a Pro Member Perk with BiggerPockets and I'd highly recommend the Pro Membership with BiggerPockets too.
As I read this book (rather quickly, finishing it in about 5 days), I felt as if Brandon and I were sitting in a living room and he was basically telling me how to invest in real estate with no and low money down. Nothing was too over the top, nor was there anything that was simplified too much.
One of the great things that I've heard Brandon say a lot on the podcast, and David Greene too is that it's good to have a few tools in your toolbox/toolbelt to use so that you're not limited in your ability to invest in real estate and become profitable too.
This book is a resource to refer to every so often and I'm glad that it was written for a new investor like myself.
Thanks Brandon.
September 1, 2015
I received this book as a gift and thought it was filled with great ideas and strategies. I invest in other categories besides real estate and also found some innovative/creative ideas to apply to my other investment pursuits. I am interested in reading more from the BiggerPockets group now.
January 19, 2018
Good for beginners
I’ve learned a lot from this book. I was able to buy my four unit apartment with little money down since 4 units and smaller are treated as a single family home.
I’ve learned a lot from this book. I was able to buy my four unit apartment with little money down since 4 units and smaller are treated as a single family home.
June 22, 2021
Love books like this that motivate you to think creatively. Rather than saying "I can't afford it," start with "How could I afford it?" I found the chapters on lease options and syndications really interesting. Definitely recommend if you're looking to build wealth through real estate.
October 26, 2018
I've probably read this book more than ten times, and it still holds my interest because there's so much rich information for creative finance in real estate. This book introduced me to the BRRRR strategy, which is what I've built my business on.
December 19, 2021
Really enjoyed this book and it actually gave creative strategies on how to invest in real estate when having little to no money.
November 30, 2022
“Rich dad forbade the words ‘I can’t afford it.’… Instead, rich dad required his children to say, ‘How can I afford it?’
Be conservative: This means assuming the worst when buying property. Take as a given that taxes will go up, your unit will sit vacant for a certain percentage of each year (higher than the average for your area), repairs will be numerous and expensive, and you will need to evict deadbeat tenants. Plan for these costs and only buy property that proves to still be a good deal even after a conservative estimate of potential revenues.
For a video tutorial on exactly how I analyze potential rental properties, check out “How to Analyze Real Estate Investments.”
Homeowners are often given the first option to buy foreclosures (especially HUD homes, which are properties that have been foreclosed upon by the U.S. Department of Housing and Urban Development).
As Kiyosaki explains in Rich Dad Poor Dad, buying a single-family home to live in is not an “investment,” it’s a liability. It costs you money each and every month, takes a significant amount of money to maintain each year, and is probably your single biggest expense. Far too many Americans treat their home as some holy investment, when really, it’s putting them in financial hell.
The neat part is this: duplexes, triplexes, and fourplexes are all considered “residential,”
At its core, the 203k loan is a two-part loan that includes funds to both purchase and rehab a home to the specifics you desire. In other words, you can buy a property that is in desperate need of new paint, carpet, smell removal, or other cosmetic (or structural) attention, and the 203k loan allows you to roll all those costs into the loan so you don’t need to pay for them out of pocket.
give yourself ample time to close when making an offer on a property for which you’ll be using a 203k loan.
a VA loan can be used to purchase single-family homes or small multifamily properties with up to four units, but only for individuals purchasing a primary residence.
BiggerPockets Hard Money Lenders Directory.
Write down the problems in each part of the property. While you are still on-site at the property, go room by room and write down its condition, as well as any needed repairs that you notice.
Be conservative: This means assuming the worst when buying property. Take as a given that taxes will go up, your unit will sit vacant for a certain percentage of each year (higher than the average for your area), repairs will be numerous and expensive, and you will need to evict deadbeat tenants. Plan for these costs and only buy property that proves to still be a good deal even after a conservative estimate of potential revenues.
For a video tutorial on exactly how I analyze potential rental properties, check out “How to Analyze Real Estate Investments.”
Homeowners are often given the first option to buy foreclosures (especially HUD homes, which are properties that have been foreclosed upon by the U.S. Department of Housing and Urban Development).
As Kiyosaki explains in Rich Dad Poor Dad, buying a single-family home to live in is not an “investment,” it’s a liability. It costs you money each and every month, takes a significant amount of money to maintain each year, and is probably your single biggest expense. Far too many Americans treat their home as some holy investment, when really, it’s putting them in financial hell.
The neat part is this: duplexes, triplexes, and fourplexes are all considered “residential,”
At its core, the 203k loan is a two-part loan that includes funds to both purchase and rehab a home to the specifics you desire. In other words, you can buy a property that is in desperate need of new paint, carpet, smell removal, or other cosmetic (or structural) attention, and the 203k loan allows you to roll all those costs into the loan so you don’t need to pay for them out of pocket.
give yourself ample time to close when making an offer on a property for which you’ll be using a 203k loan.
a VA loan can be used to purchase single-family homes or small multifamily properties with up to four units, but only for individuals purchasing a primary residence.
BiggerPockets Hard Money Lenders Directory.
Write down the problems in each part of the property. While you are still on-site at the property, go room by room and write down its condition, as well as any needed repairs that you notice.
March 31, 2021
Fantastic summary/explanation of ways to invest in real estate with low/no money down, just as title says. Brandon is great at communicating in clear/basic ways - a great primer on all the options out
there!
1. The Art of Creative Real estate Investing
a. 4 rules of Creative Investing
i. You need to find better deals than normal investors – must have price < market value
b. Be extremely conservative, plan for the worst
c. Creative finance requires sacrifice – have to trade cash for patience/sacrifice
i. EX: Driving for $$, house hacking, living conservatively
d. Does NOT mean investing w/o a cushion. You need an emergency fund
2. Owner-Occupied Investment Properties
a. Methods
i. FHA
1. insures loan against loss protects bank
a. Includes 1-2% fee up front + $100/mo. per $100k loaned
b. 3.5% down payment
2. Risks/drawbacks:
a. Red tape w/ gov
b. Mortgage Insurance Premium (MIP AKA PMI)
c. Can only have 1 FHA in your name at a time
i. But you can refinance, get another conventional loan and then get another FHA loan
ii. 203k Loan – Same as FHA but includes loan for purchase and rehab in 1 loan
a. EX: $90k home + $10k repairs = $100k loan @3.5% down = $3,500 down, $96.5k loan
b. Repairs have to be done by/inspected by FHA-approved person
c. Repairs have to finish w/in 6 months of closing
2. Drawbacks (in addition to normal FHA)
a. Even more red tape
b. Rehabs = risky if you discover things HUD/FHA won’t cover, have to fund out of pocket
c. PMI (MIP)
iii. VA Loans – Exclusively for vets
1. 0% down, no PMI
2. Seller can pay 100% of closing costs
iv. USDA Loans – for rural SFH and low/moderate income
a. 0% down
b. No PMI/MIP
c. No max purchase price
d. Repairs/upgrades baked into loans
2. Drawbacks:
a. Location specific
b. Red tape
c. SFH homes
i. But does have 10% down on multifamily rural areas
1. Guaranteed rural rental housing program @usda.gov
d. 0% down = high leverage
b. All the above have loan preapproves through gov via your bank
3. Partnership – work with someone else
a. Methods:
i. Full equity partnership – Person A funds deal/flip, A and B split profit
ii. Down payment equity partnership – Person A gets mortgage/funds down payment, but A and B are on title, split profits
iii. Private Lending Partnerships – A lends B at fixed interest rate/term
iv. Credit Partnership – Use hard $$ for down payment/repairs, refinance into your name, get loan, pay back hard lender
b. Dangers
i. Personality Conflicts
ii. Differences of Opinion
iii. Suspicion/Trust
iv. Delayed Decision Making (vs if it was just you)
v. Mixing Business/Friendship
vi. Legal Responsibility for a partner
vii. More complicated taxes
4. Home Equity Loans/Lines of Credit
a. Home Equity Loan – take out loan against your home, repay in monthly payments like a mortgage
b. Home Equity Line of Credit (HELOC) – same as home equity loan but with flexible repayment schedule (but always accruing interest)
c. Risks:
i. Overleveraging
ii. Less cash flow
iii. Adjustable rates
5. Hard Money
a. Qualities:
i. Short term (6-36 months)
ii. High interest (8-15%)
iii. High loan points up front
iv. Often no credit check/income verification
v. Faster than traditional loans
vi. Property condition is not important
b. Can find in Bigger Pockets Hard Money Directory
c. Risks/Drawbacks:
i. Expensive (high interest rates + points)
ii. You can’t sell (if you’re flipping and can’t sell, that’s a problem)
iii. If you can’t refinance into your name/conventional loan
6. Private $$ - same as hard $$ but flexible deals/guidelines
a. Requires more networking, has high interest rates (like hard $$)
7. Lease Options – lease home to renter, who has exclusive option to pay during option period
a. Owner benefits:
i. Lessee may be required to perform repairs
ii. Lease option tenants tend to treat homes better, since it may be theirs
iii. Incentive for responsible payments – if they don’t pay, they can’t buy
iv. NO agent commission upon sale
v. Less turnover and fewer turnover costs
vi. Possible higher sales price
b. Tenant benefits:
i. Ability to lock in sales price
ii. “ownership” of home while renting
iii. Plan for home ownership
iv. Stability in home
c. Lease Option Sandwich – A rents from B, then B rents to C for more
i. Set C option timeline shorter than B, so if C wants to buy, B can exercise option with A
ii. Longer option is with A, the better, and let A know what you’re doing
d. Risk =
i. Due on Sale Clause
ii. Major Repairs Owner can’t cover
iii. Changing legislation
8. Seller Financing – instead of paying mortgage to bank, you’re paying back seller over course of agreed term
a. Problem: Due on Sale Clause – if seller has mortgage, he may have mortgage called once “selling” to buyer. So need to have seller with fully paid off mortgage
b. Buyer Benefits:
i. Ease
ii. Possible low/no down payments
iii. Creative repayment options
iv. Purchase unfinanceable properties
v. Doesn’t show on credit report
c. Seller Benefits:
i. Consistent income
ii. Better ROI (higher interest than savings account)
iii. Spread out taxes (no large capital gains at once)
iv. If you can’t sell otherwise, this is another way to sell
d. Ways to find
i. Ask
ii. Look for keywords
iii. Direct Mail
e. Risks/drawbacks as buyer
i. Due on sale clause
ii. Higher interest rate
iii. Fewer potential properties
9. Wholesaling – collecting fee for finding great deal/passing rights to that deal to someone else
a. Ways to find great deals
i. Driving for $$
ii. Direct Mail
iii. SEO Tools to website
iv. Online marketing
v. Signs
vi. MLS
vii. Craigslist
viii. For Sale By Owner (FSBO)
ix. Empowering Others (have others bring deals to you)
b. Wholesaling math methods
i. After Repair Value – use comps on $/sq ft basis (adjusted for additional/comparable qualities of house)
ii. 70% rule max allowable offer = (ARV x.7)- Repairs – wholesale fee
1. EX: house can be sold for $100k with $10k repairs + $5k wholesale fee $100k x .7 - $10k - $5k = $55k max allowable offer
2. Problems with 70% rule = doesn’t consider holding costs, and doesn’t work with really cheap or really expensive properties
iii. Fixed Cost method ARV – Fixed Costs – Investor Profit – Wholesale fee – Rehab Cost = Max allowable offer
c. Estimating Rehab costs
i. Understand buyer/neighborhood
ii. Tour property in detail
iii. Write down problems, condense list into 25 categories (among exterior/interior/general components)
1. Determine rehab price for each category
d. Closings – could have simultaneous closing where you’re simultaneously buying/selling house at title company in same day
10. Syndication – pooling others’ $$ and finding deals and splint profits with investors
a. Have General Partners (GPs, manage properties) and Limited Partners (LPs, investors)
b. Common fees:
i. Acquisition fee
ii. Asset Mgmt fee (ongoing)
11. Creative Combos
a. Partner/Hard $$ to refinance – having diff sources of $$ to fund down payment/repairs, then using partner credit to refinance/split title with partner
b. Master lease Option to Partial Seller Financing – Buyer offers to rent and manage property, improves/rents it out to others, then uses cash flow to put down payment on the partial seller financed deal (other part comes from mortgage)
c. 203k to cash out refi to partnership flip – get 203k (FHA) loan to live in/repair property, then refi to conventional loan, then uses cash out to flip elsewhere
there!
1. The Art of Creative Real estate Investing
a. 4 rules of Creative Investing
i. You need to find better deals than normal investors – must have price < market value
b. Be extremely conservative, plan for the worst
c. Creative finance requires sacrifice – have to trade cash for patience/sacrifice
i. EX: Driving for $$, house hacking, living conservatively
d. Does NOT mean investing w/o a cushion. You need an emergency fund
2. Owner-Occupied Investment Properties
a. Methods
i. FHA
1. insures loan against loss protects bank
a. Includes 1-2% fee up front + $100/mo. per $100k loaned
b. 3.5% down payment
2. Risks/drawbacks:
a. Red tape w/ gov
b. Mortgage Insurance Premium (MIP AKA PMI)
c. Can only have 1 FHA in your name at a time
i. But you can refinance, get another conventional loan and then get another FHA loan
ii. 203k Loan – Same as FHA but includes loan for purchase and rehab in 1 loan
a. EX: $90k home + $10k repairs = $100k loan @3.5% down = $3,500 down, $96.5k loan
b. Repairs have to be done by/inspected by FHA-approved person
c. Repairs have to finish w/in 6 months of closing
2. Drawbacks (in addition to normal FHA)
a. Even more red tape
b. Rehabs = risky if you discover things HUD/FHA won’t cover, have to fund out of pocket
c. PMI (MIP)
iii. VA Loans – Exclusively for vets
1. 0% down, no PMI
2. Seller can pay 100% of closing costs
iv. USDA Loans – for rural SFH and low/moderate income
a. 0% down
b. No PMI/MIP
c. No max purchase price
d. Repairs/upgrades baked into loans
2. Drawbacks:
a. Location specific
b. Red tape
c. SFH homes
i. But does have 10% down on multifamily rural areas
1. Guaranteed rural rental housing program @usda.gov
d. 0% down = high leverage
b. All the above have loan preapproves through gov via your bank
3. Partnership – work with someone else
a. Methods:
i. Full equity partnership – Person A funds deal/flip, A and B split profit
ii. Down payment equity partnership – Person A gets mortgage/funds down payment, but A and B are on title, split profits
iii. Private Lending Partnerships – A lends B at fixed interest rate/term
iv. Credit Partnership – Use hard $$ for down payment/repairs, refinance into your name, get loan, pay back hard lender
b. Dangers
i. Personality Conflicts
ii. Differences of Opinion
iii. Suspicion/Trust
iv. Delayed Decision Making (vs if it was just you)
v. Mixing Business/Friendship
vi. Legal Responsibility for a partner
vii. More complicated taxes
4. Home Equity Loans/Lines of Credit
a. Home Equity Loan – take out loan against your home, repay in monthly payments like a mortgage
b. Home Equity Line of Credit (HELOC) – same as home equity loan but with flexible repayment schedule (but always accruing interest)
c. Risks:
i. Overleveraging
ii. Less cash flow
iii. Adjustable rates
5. Hard Money
a. Qualities:
i. Short term (6-36 months)
ii. High interest (8-15%)
iii. High loan points up front
iv. Often no credit check/income verification
v. Faster than traditional loans
vi. Property condition is not important
b. Can find in Bigger Pockets Hard Money Directory
c. Risks/Drawbacks:
i. Expensive (high interest rates + points)
ii. You can’t sell (if you’re flipping and can’t sell, that’s a problem)
iii. If you can’t refinance into your name/conventional loan
6. Private $$ - same as hard $$ but flexible deals/guidelines
a. Requires more networking, has high interest rates (like hard $$)
7. Lease Options – lease home to renter, who has exclusive option to pay during option period
a. Owner benefits:
i. Lessee may be required to perform repairs
ii. Lease option tenants tend to treat homes better, since it may be theirs
iii. Incentive for responsible payments – if they don’t pay, they can’t buy
iv. NO agent commission upon sale
v. Less turnover and fewer turnover costs
vi. Possible higher sales price
b. Tenant benefits:
i. Ability to lock in sales price
ii. “ownership” of home while renting
iii. Plan for home ownership
iv. Stability in home
c. Lease Option Sandwich – A rents from B, then B rents to C for more
i. Set C option timeline shorter than B, so if C wants to buy, B can exercise option with A
ii. Longer option is with A, the better, and let A know what you’re doing
d. Risk =
i. Due on Sale Clause
ii. Major Repairs Owner can’t cover
iii. Changing legislation
8. Seller Financing – instead of paying mortgage to bank, you’re paying back seller over course of agreed term
a. Problem: Due on Sale Clause – if seller has mortgage, he may have mortgage called once “selling” to buyer. So need to have seller with fully paid off mortgage
b. Buyer Benefits:
i. Ease
ii. Possible low/no down payments
iii. Creative repayment options
iv. Purchase unfinanceable properties
v. Doesn’t show on credit report
c. Seller Benefits:
i. Consistent income
ii. Better ROI (higher interest than savings account)
iii. Spread out taxes (no large capital gains at once)
iv. If you can’t sell otherwise, this is another way to sell
d. Ways to find
i. Ask
ii. Look for keywords
iii. Direct Mail
e. Risks/drawbacks as buyer
i. Due on sale clause
ii. Higher interest rate
iii. Fewer potential properties
9. Wholesaling – collecting fee for finding great deal/passing rights to that deal to someone else
a. Ways to find great deals
i. Driving for $$
ii. Direct Mail
iii. SEO Tools to website
iv. Online marketing
v. Signs
vi. MLS
vii. Craigslist
viii. For Sale By Owner (FSBO)
ix. Empowering Others (have others bring deals to you)
b. Wholesaling math methods
i. After Repair Value – use comps on $/sq ft basis (adjusted for additional/comparable qualities of house)
ii. 70% rule max allowable offer = (ARV x.7)- Repairs – wholesale fee
1. EX: house can be sold for $100k with $10k repairs + $5k wholesale fee $100k x .7 - $10k - $5k = $55k max allowable offer
2. Problems with 70% rule = doesn’t consider holding costs, and doesn’t work with really cheap or really expensive properties
iii. Fixed Cost method ARV – Fixed Costs – Investor Profit – Wholesale fee – Rehab Cost = Max allowable offer
c. Estimating Rehab costs
i. Understand buyer/neighborhood
ii. Tour property in detail
iii. Write down problems, condense list into 25 categories (among exterior/interior/general components)
1. Determine rehab price for each category
d. Closings – could have simultaneous closing where you’re simultaneously buying/selling house at title company in same day
10. Syndication – pooling others’ $$ and finding deals and splint profits with investors
a. Have General Partners (GPs, manage properties) and Limited Partners (LPs, investors)
b. Common fees:
i. Acquisition fee
ii. Asset Mgmt fee (ongoing)
11. Creative Combos
a. Partner/Hard $$ to refinance – having diff sources of $$ to fund down payment/repairs, then using partner credit to refinance/split title with partner
b. Master lease Option to Partial Seller Financing – Buyer offers to rent and manage property, improves/rents it out to others, then uses cash flow to put down payment on the partial seller financed deal (other part comes from mortgage)
c. 203k to cash out refi to partnership flip – get 203k (FHA) loan to live in/repair property, then refi to conventional loan, then uses cash out to flip elsewhere
This entire review has been hidden because of spoilers.
October 19, 2020
Investing with no money might seem to good to be true, and though it’s possible, it can very hard to achieve. Creative financing can have a major effect, especially considering how real estate leverage has formidable potential. This is a book about investing with no (and low) money down.
I found the style of writing very irritating, I never found comedy and silliness appealing in real estate books, and this book was full of it, I understand that this is a brand-style, but this book from this specific writer was different that different BiggerPocket books.
Most of useful information I obtained wasn’t specifically about investing with no or low money per se, but just new insight around financing and deal analysis. It’s not a bad book, but there are better out here, but if you have read so many real estate books, this one could be helpful taking in consideration that real estate books in one way or another repeat the same things, and what’s really left is nuances that can make a difference after all.
I found the style of writing very irritating, I never found comedy and silliness appealing in real estate books, and this book was full of it, I understand that this is a brand-style, but this book from this specific writer was different that different BiggerPocket books.
Most of useful information I obtained wasn’t specifically about investing with no or low money per se, but just new insight around financing and deal analysis. It’s not a bad book, but there are better out here, but if you have read so many real estate books, this one could be helpful taking in consideration that real estate books in one way or another repeat the same things, and what’s really left is nuances that can make a difference after all.
August 18, 2024
I picked up The Book on Investing In Real Estate with No (and Low) Money Down to educate myself ahead of a few key decisions related to buying property.
The text was helpful to learn and relate industry terminology to my conceptual ideas about the kind of investor I want to be. To get this benefit, I read the book with a clear idea of what I wanted to learn more about. This intentional approach helped me cut through some of the repetitive parts.
I would recommend it to anyone looking to learn more about the tactical options one can use to approach real estate investment.
The text was helpful to learn and relate industry terminology to my conceptual ideas about the kind of investor I want to be. To get this benefit, I read the book with a clear idea of what I wanted to learn more about. This intentional approach helped me cut through some of the repetitive parts.
I would recommend it to anyone looking to learn more about the tactical options one can use to approach real estate investment.
July 1, 2017
So much self (publisher mostly) promoting that it is disgusting. You cannot read a page without reading about go to our website or buy another one of our books.
The writer really focuses on there perspective of someone who does not have money to buy which to be fair is starting true to the title of the book but after reading it, I still don't think it is really realistic short of the border-line scam methods talked about.
The writer really focuses on there perspective of someone who does not have money to buy which to be fair is starting true to the title of the book but after reading it, I still don't think it is really realistic short of the border-line scam methods talked about.
Read
January 19, 2017Very informative. Def. going to take what I learned here when moving forward.
March 12, 2022
This book is a primer on real estate investment funding. They basically talk about a few types of funding. They talk about FHA-backed loans, hard money lending, seller financing and wholesaling. FHA-backed loans are self explanatory. Hard money lending is when you take out a loan from a hard money lender at a higher rate and with lower obstacles than traditional financial instruments through the banks, usually for short term projects. However, a hard money lending situation can be converted to something more sustainable for a buy and hold plan if the house is refinanced into a traditional mortgage and the original lender is paid back. Seller financing involves the sellers who are interested in anything other than immediately being cashed out of their property in full, whether that be getting partially cashed out up front and financing the rest (acting as the bank in this situation with a lien on the house) or if they get cashflow with ownership as a potential rather than a guarantee (leasehold financing or rent-to-own). Wholesaling involves finding deals, getting them under contract, finding qualified buyers who are interested in the type of deal you have to offer and profiting from the delta between the cost you're contracted to buy the property at and the price the buyer is willing to pay for a property with that profile.
The author stresses, repeatedly, that all of these methods rely on assembling sense-making deals (deals which take into account current condition, needed repairs, ARV [after-repair value] and comparable properties) with the profit-potential built in up front. I'm not sure how useful they'll be in the NYC housing market but, given that this is from biggerpockets, I'd say this information is widely applicable.
The author stresses, repeatedly, that all of these methods rely on assembling sense-making deals (deals which take into account current condition, needed repairs, ARV [after-repair value] and comparable properties) with the profit-potential built in up front. I'm not sure how useful they'll be in the NYC housing market but, given that this is from biggerpockets, I'd say this information is widely applicable.
January 8, 2020
Clocking in 2020 determined to hit my 52 book goal. Week 1 is done as I complete this solid real estate book though I did read about 80% during 2019 (don't tell anyone).
I consider this book a good introductory book into the ways to creatively finance real estate deals. Each chapter serves as an introduction to a new strategy from low down payment FHA loans to wholesaling. Brandon Turner provides a good conceptual argument for the strategy and provides a few examples.
You will not leave this book an expert on creative financing but you will likely be encouraged or even inspired to try one or a combination of the strategies out. For someone who already has an understanding of these financing fundamentals, you may benefit from thinking if one of the strategies in a new way or will get a flash of inspiration to try something new in your business.
For me, with minimal personal residential real estate knowledge, I would return to this book when considering a new financing idea and use it as a spring board into additional resources and research. Nothing beats experience but learning from others experiences is probably the best you can do without your own. 2020 I will buy something and get my own notch under my belt.
I consider this book a good introductory book into the ways to creatively finance real estate deals. Each chapter serves as an introduction to a new strategy from low down payment FHA loans to wholesaling. Brandon Turner provides a good conceptual argument for the strategy and provides a few examples.
You will not leave this book an expert on creative financing but you will likely be encouraged or even inspired to try one or a combination of the strategies out. For someone who already has an understanding of these financing fundamentals, you may benefit from thinking if one of the strategies in a new way or will get a flash of inspiration to try something new in your business.
For me, with minimal personal residential real estate knowledge, I would return to this book when considering a new financing idea and use it as a spring board into additional resources and research. Nothing beats experience but learning from others experiences is probably the best you can do without your own. 2020 I will buy something and get my own notch under my belt.
November 24, 2024
The audiobook is pretty lousy and I definitely would NOT recommend it. The narrator speaks in SUCH an unbelievably choppy cadence (and that's while listening at 1.5x, nevermind if I was to drop to 1x). It sounds SO robotic. It's like driving around in a run down city littered with nothing but potholes and speed bumps everywhere.
On top of that he leaves every single recording error in the book. You will REGULARLY have to listen to him repeat a sentence 2, 3, maybe even 4 times. Instead of recording over the errors made, they are left in to show you just how much the author + narrator cares about your listening experience.
Easily one of the most amateurish narrations of an audiobook I have ever listened to. The production was so clearly rushed and the lack of quality so apparent. It was like a high schooler staying up late Sunday night so he could haphazardly blast through his essay due in a few hours.
Spellcheck, flow, clarity, proper syntax...forget about it! There's no time for any of that, let's just get this thing over with and call it a night.
One of the only upsides is that he at least speaks in a moderately happy tone.
The content itself? Let's say it was decent at best.
1.5 Stars the listening experience was just too AWFUL.
On top of that he leaves every single recording error in the book. You will REGULARLY have to listen to him repeat a sentence 2, 3, maybe even 4 times. Instead of recording over the errors made, they are left in to show you just how much the author + narrator cares about your listening experience.
Easily one of the most amateurish narrations of an audiobook I have ever listened to. The production was so clearly rushed and the lack of quality so apparent. It was like a high schooler staying up late Sunday night so he could haphazardly blast through his essay due in a few hours.
Spellcheck, flow, clarity, proper syntax...forget about it! There's no time for any of that, let's just get this thing over with and call it a night.
One of the only upsides is that he at least speaks in a moderately happy tone.
The content itself? Let's say it was decent at best.
1.5 Stars the listening experience was just too AWFUL.
September 14, 2017
Really great book that talks about a bunch of creative real estate investing ideas. What I love about this book is that it talks about how to do these things ethically (and legally). There are plenty of people in real estate who do things that are morally and legally dubious based on how you do it, ethically odd if people you're working with don't know that you're doing it, or not legal in your state/county. Brandon calls those things out in this book and encourages you about how to do things right and when you should be checking with state and local regulations around certain things.
This is particularly noteworthy when it comes to using bandit signs for marketing, assigning a contract when wholesaling, and whether lease options trigger 'due on sale' clauses in mortgage documents. This is a really great primer on the topic and a valuable addition to anyone's library who is looking to get involved in real estate.
This is particularly noteworthy when it comes to using bandit signs for marketing, assigning a contract when wholesaling, and whether lease options trigger 'due on sale' clauses in mortgage documents. This is a really great primer on the topic and a valuable addition to anyone's library who is looking to get involved in real estate.
January 25, 2018
Being new to real estate investing I found the information provided to be very insightful. I had a great experience learning the different approaches to creative investing and I feel confident I can find greater deals in my area and launch my career. However, I have to give the book 4 stars because of the continuous and over promotion of BiggerPockets. I understand that writing a book is essential in building your brand but the overuse of marketing became extremely annoying come the end of the book.
As I said though, the book contains great and informative content and I would recommend a young investor such as myself dive into this book. Just be prepared to be annoyed with the constant BiggerPockets boasting.
As I said though, the book contains great and informative content and I would recommend a young investor such as myself dive into this book. Just be prepared to be annoyed with the constant BiggerPockets boasting.
April 20, 2020
You really need a lender to purchase real estate even you only have a penny in your account(s)? This is for anyone who finds different methods to purchase a home. It could be your first home or tenth home.
You'll definitely learn you don't need a traditional lender like Bank of America, Wells Fargo or Chase who always find a reason not to finance you for your best deal. As I always say they there for people who already got money and steal poor people's money with tons of charges by paying almost nothing in interest.
In summary, you'll learn about: FHA, 203k, VA, USDA, partnerships, HELOC, hard money, private money, lease options, seller financing, wholesaling and some of the rehab cost estimate techniques like 70% rule and fixed cost estimates.
Keep reading!
@meetKushan
You'll definitely learn you don't need a traditional lender like Bank of America, Wells Fargo or Chase who always find a reason not to finance you for your best deal. As I always say they there for people who already got money and steal poor people's money with tons of charges by paying almost nothing in interest.
In summary, you'll learn about: FHA, 203k, VA, USDA, partnerships, HELOC, hard money, private money, lease options, seller financing, wholesaling and some of the rehab cost estimate techniques like 70% rule and fixed cost estimates.
Keep reading!
@meetKushan
July 13, 2023
Great initial foray into exploring real estate. Lots of interesting strategies at ones disposal. At this stage, An FHA-insured loan is the most enticing (living in the property for at least a year and only having to put 3.5% down).
The chapter on syndication was also interesting given my interest in startup investing (where syndication is also popular). Companies raising under 506(b) raise privately, whereas funds raising under 506(c) are raising publicly, ie, they can market and publicly announce they are raising money to attract investors. The caveat is that under 506(b), you can take money from (35) non-accredited investors, while companies raising under a 506(c) cannot take any money from non-accredited investors.
The chapter on syndication was also interesting given my interest in startup investing (where syndication is also popular). Companies raising under 506(b) raise privately, whereas funds raising under 506(c) are raising publicly, ie, they can market and publicly announce they are raising money to attract investors. The caveat is that under 506(b), you can take money from (35) non-accredited investors, while companies raising under a 506(c) cannot take any money from non-accredited investors.
April 13, 2024
I acknowledge that I definitely "1, 2, Skipped a Few..." during this book. 😅
In all honesty, there's so much cross-over between this and Turner's other “Rental Property Investing” book. Like, chapters copy/pasted from one book to the next. This is probably by design, but then maybe Brett shouldn’t market in the end of every book to buy all three of the trilogy? 🤔🤨
If you’re interested in real estate, give Brett Turner’s “Rental Property Investing” a go. I think you can skip this one and if there’s any specifics about FHA, 203 or FDA loans in this book not in others, you’ll probably cover that naturally in other research. And that’s a pretty big IF. This book felt like a sub-section of the aforementioned (and reviewed) book.
Byyyyyeeeee! ✌🏻
In all honesty, there's so much cross-over between this and Turner's other “Rental Property Investing” book. Like, chapters copy/pasted from one book to the next. This is probably by design, but then maybe Brett shouldn’t market in the end of every book to buy all three of the trilogy? 🤔🤨
If you’re interested in real estate, give Brett Turner’s “Rental Property Investing” a go. I think you can skip this one and if there’s any specifics about FHA, 203 or FDA loans in this book not in others, you’ll probably cover that naturally in other research. And that’s a pretty big IF. This book felt like a sub-section of the aforementioned (and reviewed) book.
Byyyyyeeeee! ✌🏻
June 3, 2022
I think this book does what it sets out to do. It gives insight into real estate investing for those who may not be as fortunate to have the capital to invest in real estate. It outlines many different options and can spark creativity for those who want to get into real estate investing. I leveraged one of the options the book laid out which was using an FHA loan to buy my first house hack property. One of the cons I have with this book among other bigger pockets books or that the editing could be better. I tend to find many grammatical errors in their books, but nothing that can't be overlooked given the valuable content it provides.
August 23, 2019
After reading Rich Dad Poor Dad, I knew that Real Estate would be my main driver towards financial independence. However, one monumental problem reared it’s large, ugly head: I was (still am to an extent) broke!
I chose this to be my next book for 2 reasons:
- The catchy name of the book
- It was the shortest of the four books I bought that day!
This book opened my eyes to the meaning behind “creative investing”. As the name of the book suggests, many tips and strategies for investing in real estate with little-to-no money are given. On top of that, Brandon Turner provides a little mental prodding, if you will, to get your own creative gears turning. You’ll learn how to navigate the world of financing great deals, either with one strategy, or a combination of two or more!
For anyone looking to get started with real estate with very little money like I am, this book is for you!
I chose this to be my next book for 2 reasons:
- The catchy name of the book
- It was the shortest of the four books I bought that day!
This book opened my eyes to the meaning behind “creative investing”. As the name of the book suggests, many tips and strategies for investing in real estate with little-to-no money are given. On top of that, Brandon Turner provides a little mental prodding, if you will, to get your own creative gears turning. You’ll learn how to navigate the world of financing great deals, either with one strategy, or a combination of two or more!
For anyone looking to get started with real estate with very little money like I am, this book is for you!
February 25, 2023
This book provided in depth looks into interesting ways people can acquire the money needed to invest in real estates.
There weren’t any complicated formulas or spreadsheets detailing how to value property, which I wish there was. The examples of characters using the methods in the book also seemed rushed. It was quite clear where figures were coming from so be aware of that.
Overall if you’re looking for ideas this is a good book to read. If you’re looking for a guide on analyzing properties, I’d say look elsewhere.
There weren’t any complicated formulas or spreadsheets detailing how to value property, which I wish there was. The examples of characters using the methods in the book also seemed rushed. It was quite clear where figures were coming from so be aware of that.
Overall if you’re looking for ideas this is a good book to read. If you’re looking for a guide on analyzing properties, I’d say look elsewhere.
September 25, 2021
Good for newbies
All strategies in the book are fine. The book could be summarized in a series of short blog posts… or simply the book could be shorter.
It won’t blow your mind as the author claims in the incipit. If you’re new to investing in real estate, you may want to read other books. Otherwise, this book may give you some ideas on how to expand your real estate business, but nothing more.
All strategies in the book are fine. The book could be summarized in a series of short blog posts… or simply the book could be shorter.
It won’t blow your mind as the author claims in the incipit. If you’re new to investing in real estate, you may want to read other books. Otherwise, this book may give you some ideas on how to expand your real estate business, but nothing more.
August 4, 2022
This book was an excellent first step for entering the world of real estate investing. Going into the read I was full of doubts, but the book addressed all of them and made me change my perspective on the subject of investing with limited capital. Overall, the book is very empowering and does a great job of explaining the basics of the subject. Highly recommend to anyone who is passionate about real estate investing.
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