How I am buying a house with $0 down

Hey everybody!

Welcome to another edition of “The Financial Freedom Blueprint” where we discuss the topics of real estate and financial freedom.

My goal is to help as many people as I can get started investing in real estate and eventually reach a goal of financial freedom where they can create a life they don’t need a vacation from.

Today, I will be breaking down a deal that I am about to close on that allows me to bring $0 to the closing table.

The reason I’m doing this is to show others this is still possible in today’s market.

I also know people like to see the breakdown.

Some people think I am making this stuff up, but I promise you I’m not…see the screenshot for proof.

Now, I’m not planning to sell this property once completed. The business plan is to rent it out and hold it as a rental. The main point I want you to see is the last sentence, “You will need to bring $0 certified funds to closing.”

Now, how did I do this?

To begin, I am financing this deal with a local hard money lender in the Kansas City area.

The type of property is a fixer-upper that has 3 bedrooms and 1 bathroom.

The lender is funding 74% of the ARV. They base this percentage on the area of the property and the investor’s experience.

Here are the numbers:

Purchase Price: $55,000

Estimated Rehab: $80,000

After Repair Value: $195,000

Closing Costs: Approximately $7300

74% of $195,000 equals $144,300

When you add up the purchase price, rehab costs, and closing costs, you get $142,300.

Since this amount is less than they are funding, I don’t have to bring anything to closing.

For clarification purposes, many lenders require some skin in the game when it comes to money.

However, I have found a lender that when bought right, allows me to buy it with no money out of my pocket.

So if you are speaking to a lender and they don’t finance it this way, then call around and find other lenders.

Don’t quit after talking to one.

For those of you in coastal cities who do not think houses exist for $55,000, I recommend you start looking outside your local markets.

What’s surprising is I actually found this deal sitting on Zillow for a while.

Even though I recommend off-market deals, you can still keep an eye on these platforms as well.

If a property has been sitting for a long time, don’t be afraid to make a lowball offer. You never know if the seller will accept it.

It was initially listed at $70,000. I offered $63,000 and got it under contract.

After the inspections were done, I noticed it needed more rehab than I originally thought, so I countered at $55,000 and the sellers accepted.

If necessary, use the inspections during the due diligence period as a chance to renegotiate.

That’s it for today.

Have a great Labor Day weekend everyone!

P.S. - By the way, I’m looking to help 2 people starting in September who want to acquire their first investment property within 6 months. If that is something you’d be interested in, reply to this email with “Interested”.