What does “No Money Down” mean?
Money changes hands in nearly every transaction when it comes to investing, especially when investing in real estate. When you hear the term “no money down,” it usually means that none of your money will be needed or used. However, money from some other source will most likely be needed and used. OPM is a term used in investing that means Other People’s Money. The majority of “No Money Down” deals will use OPM or they will involve an almost immediate reimbursement of any money that is put in on the deal. “No Money Down” rarely, if ever, means that no money will be used for the down payment of the transaction.
Can you really invest with “No Money Down?”
Yes. Using OPM, you can invest in little or no money down deals all day long. However, these deals often require more effort and more due diligence. They may even require good credit. But sometimes, they just require a bit of effort and some elbow grease to get them going. So, if you are broke and you have zero credit, you can still make money.
Why do people use the phrase “No Money Down”?
Most people use the term, “No Money Down,” to draw people into seminars or webinars in order to lead them to a bigger selling product. One leads to the next that leads to the next and so on and so forth. The series of higher level buy-ins only ends when the customer runs out of money. Be careful, because a majority of Real Estate gurus use this tactic. In fact, I’ve been a victim of them myself. You would be better off keeping your money and not running up the debt on your credit card so you can invest in profitable tactics that lead them to wealth and you to the poor house. Sure, there are a few good Real Estate Investment gurus out there. However, there are way more sharks swimming in the waters. Check back to our site for a list of reputable and affordable teachers.
A Fair Warning
Everything in this report may not be legal in all 50 States, so you are going to have to check your state’s laws before implementing any of these. The reason why some of these methods have been made illegal in some areas is because of dishonest, unscrupulous people taking advantage of investors, property owners, and renters alike. There are always going to be people who are dishonest and out for a quick buck, so BE CAREFUL. The only way to protect yourself from these types of individuals is to do your due diligence and always use attorneys or title companies to service your transactions. I cannot stress this point enough: the only way to protect yourself and your family is to check everything out for yourself! Do not trust anyone to do anything for you, especially a seller or a seller’s agent. Never ever put your money in before someone else has put their money in: never. Don’t trust any inspections that were recently done by someone else: insist on getting your own inspections and reports. If someone hands you any kind of report or projections, do your own investigating. I don’t care if it’s your brother. I don’t care if it’s your mother! You have got to be responsible for your own investing and the largest part of that is due diligence, investigating all the facts yourself relying on no other. Skipping this step or trusting anyone other than yourself could have devastating consequences. Always protect yourself and your family first. Always have safety clauses in your contracts. Never put your personal assets at risk for any type of business, however, sound it may seem at the time. Know the law. Laws change every day. Trends shift, the economy changes, and you can go from feast to famine in a heartbeat if you're not careful.
Being an Investor - in anything
These strategies may use other people’s money or potentially replace a personal investment instantaneously, however, you are always going to have to have “skin in the game,” as they say. Our short article on "Rules for New Investors" will help you get started.
Tons of FREE information
You can learn more about any of these subjects for free by going to our website or going to others. Just be careful. There are some slick gurus out there who aren’t interested in helping as much as they are with separating you from your money. Be smart and don’t believe all the hype. Look for proof in the form of checks and actual money made on their services. These guys can sometimes grab testimonials at the end of an event when emotions are high. Two months later, that seminar is gone and forgotten and the folks who handed out the testimonials are worse off than they were before. Look for the proof in the form of specific amounts made and checks. If they are a US-based business, the FTC will require them to have proof before they can state the amount of money made in their program. A good rule of thumb is to check out their free information first. Use it and see if it makes you money. As Robert Kiyosaki used to say, it either puts money in your pocket or it doesn't. If it doesn't, then it's not an investment!
So there is such a thing as Santa Claus, but...
So there is such a thing as No Money Down deals, but they are much harder to find and require a lot more work. If you don't have money to invest right now, I recommend starting with these types of real estate deals. To get you started, I've posted a great training video with a pdf as well as a new blog on my absolute favorite way to get started in real estate with no money down. I hope you enjoy it. The training video is free when you opt into our mailing list.
Now go and grow!
P.S. If you want to become financially free, you need the right education. That’s why we created our course, the Short Term Rental Revenue System. If you are serious about investing your time and money into an Airbnb or Short Term Rental, you need this system. It's jammed packed with everything you need to know to create massive passive income plus we include so much more. Find out more here.
Michelle R Russell
© The Prosperity Process, LLC 2018
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