Getting Real Estate For Zero Cash Down

THERE ARE MANY WAYS FOR YOU TO GET the down payment money. Some are direct access to the full amount; others are a combination of two or more methods to get you the down payment you need. Let's look at a few methods:

1. Use your credit card line of credit for the downpayment money. Some people use one line of credit; others use as many as 10 lines of credit on 10 credit cards to get the money they need.

2. Have the seller take back a mortgage for all, or part of, the down payment amount. Thus if the down payment for your future property is $25,000, you might arrange for the seller to take back a note from you for $15,000 for 5 years; then you only have to get $10,000 for the down payment. This is called a purchase money mortgage and is widely used where the buyer lacks cash.

3. Arrange for the seller to borrow the down payment money using his/her credit and assets (the property). You then assume the responsibility for repaying the loan; the seller has the cash he/she wants and is out of the daily running of the property--which the seller is glad to be.

4. Borrow money for the down payment. You can use an insurance policy you have as a source pf borrowed money, a personal loan, a personal line of credit separate from your credit card line, or any of many other sources of funds.

5. Have the seller cosign on a loan you get from a bank, credit union, finance company, or any other lending source. The seller gets his/her money and you have the responsibility of repaying it. Just be sure the cash flow from the property allows you to repay the loan in a timely and complete manner.