Caveat emptor, baby…
I recently saw a barrage of local television ads for a free class on property investing with no money down. I thought, “this will make a terrific article” if I placed myself into the class as a ringer, looking to see exactly how they market themselves. I knew, alas, from prior experience many years ago, that these free classes are nothing more than high pressure sales pitches for traditionally reasonably priced seminars on the subject of 0 down investing for investment properties – be they for flipping houses or for rental properties. And by reasonable, I mean several hundred dollars. But the television ads were so in-your-face, and half hour in length infomercials. (They also sucked you in with the promise of a wonderful free gift for simply attending the event, and being one of the first ones there.)
High end seminars
However, they are not reasonably priced any more. This particular endeavor, based on a nationally cablecast television show, was much more high end. They were selling a sales course for a couple thousand dollars a pop. To their credit, they were very upfront about their purposes – and the cost of their program as well. Their small “gift” offer (for just being one of the first to show up), ensured a good turnout. Then, while waiting patiently for them in the local hotel they booked for the event, they announced a bait and switch on the item to be gifted. They then asked if any one there did not feel they could afford the two thousand dollar cost of their program. Clearly, they were happy to provide their gift (albeit a coupon for a gift), and then send the riff-raff on their merry way. Within a couple of minutes, the crowd of about a hundred flew out the doors, gift coupon in hand, leaving an emboldened, die-hard few souls left to hear the two hour sales pitch. I felt sorry for them. But I wasn’t stupid. I left too, gift coupon in hand. I knew what was coming…
The sales pitch
These seminars rely on your base instinct towards greed. They teach the simplicity and ease of how to buy an investment property with no money down. However, these seminars tend to ignore the most glaring fact that trying to find a seller so desperate as to offer a hundred percent financing is more than just a little difficult. It’s almost impossible. So you’ll be pounding the pavement making hundreds of offers to try to find that one diamond in the rough seller who a) owns their home free and clear, with no mortgage on it, and also, b) has been so unsuccessful at marketing their property as to not having been able to sell it yet and c) is somehow willing to take a huge risk on you to offer complete one hundred percent financing on the property. Good luck. You’ll need it. In addition, consider how much time it will take you to find such a property.
Naturally, while glossing over this aspect, the absolute key to how to buy investment property with no money down, they also pour on the high pressure sale pitch of letting you know what a tremendous opportunity you’ll be missing if you walk out the door of their free class without purchasing their educational seminar – on the spot. They’ll remind you what a dolt you’ll be if you try to go home and “think about it.” Don’t fall into this horrendous sales trap!
No money down investing is a possibility in the world of property investing. But it is most definitely unrealistic. Spending all your time looking for the “holy grail” of the ultimate desperate seller willing to offer you one hundred percent financing, who also has no mortgage on their home is like prospecting for gold…twenty years after the gold rush. My advice – stay away from these high pressure sales seminars. Save your money – and your time. Be realistic. You’ll most definitely need to put down some of your own funds in order to acquire investment property. Keep in mind that there’s also a strong measure of safety and security in doing so as well. Keep away from the charlatans, and invest wisely with your own funds.
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