Finding No Money Down Real Estate Property Deals

Buying no money down property is a goal of many property investors.

Yet numerous new people to property investing are confused when more experienced people tell them that this is possible.

In fact, they’re more than confused, they think it is practically impossible to buy property with little or none of your money in the deal.

This web page endeavours to explain what exactly a no money down property deal is and how you as investor need to make this type of property investing your bread-and-butter.

So what is a no money down property deal anyway?

Well, it is as it sounds. It is a property deal that you have none of your own money tied up in. An example of this would be something like a gifted deposit from a developer, which is where a deal is structured in a such a way that it is as if the developer has gifted you the deposit so in essence you don?t have to pay it.

The fact is that sometimes having money can be much more of a hindrance to property investing than not having money!

One of the main reasons for this is that if you have money it is very easy to just go out and buy the first property deal you see as you have the money to put down a deposit.


Whereas if you don’t have money, you have got to research and find those properties that are really below market value and the experience gained in searching is what eventually distinguishes the ones that become experts from the ones that remain on the bottom rung of the property investor ladder.

Learning to buy property without putting any money down is perhaps the greatest skill, you can learn as a property investor.
After you have learned how to buy no money down property, money will never be the issue when buying property again. Let me repeat that – money will never be the issue when buying property again. Once you learn enough techniques on how to structure finance deals or how to use other peoples money effectively, you don?t have to worry about money again.

The biggest question then is how to find and do these no money down property deals?

  • If you negotiate a property deal so that you are buying it below market value you can use techniques such as closed bridging so that you don’t actually have to part with any money.
  • If you get other investors involved and they put up the money upfront, then technically it is a no money down deal from your prospective.
  • If you use a line of interest free credit such as the interest free period on some credit cards to pay the deposit and any refurbishment fees and then re-loan before the credit card payments are due to kick in, then again this can be classed as a no money down deal as none of your own money was tied up in the deal, instead you used a line of credit and therefore it was actually the credit card provider who paid the deposit.
  • Getting a 100% or more loan on the property
  • Releasing equity from existing property you own for a brief period for a renovation or refurbishment, then remortgaging and replenishing the money you took out.

Basically any method of buying property that doesn’t require you to have any (or very little at least) of your own money/capital tied up in the deal for an extended period of time, can be classed as a no money down property deal.

This is a very broad definition and is open to different interpretations as the question comes to light as to how long your money from say an equity release can be tied up in a deal before the remortgage for it to still be classed as a NMD deal.

Keep in mind that equity releasing and using credit cards and other similar methods is using other people?s money so you are still not really using your own. However, it can be argued that at some point that money has to be deemed as your own capital.

The exact point is open for debate, but perhaps as soon as you start paying interest on it, the payment of which has to come out of your own pocket/capital/income, would be an effective indication.

In the truest sense of the word we believe a NMD deal should be one that at the time of completion you have got all your money back out of the property and potentially are even left with cash in your pocket.

**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.

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