Do no money down deals exist??
The internet is filled with smoke and mirrors bullshit. Thousands of YouTube and IG gurus claiming to be able to make you rich with none of your own money (except what it'll cost to buy their course, videos, or e-books.)
I get asked the question often: “Can I do real estate deals with little to no money of my own without giving away the farm?” The answer is YES you can, and I am proof. I have successfully completed hundreds of deals (both flips and rentals) without a dollar of my own in the deal. But how? The answer is simple, you stack levels of financing.
Let’s take a flip for example. Assume you have a house that you purchase for $200,000, renovate for $100,000, and will sell for $400,000. Keep in mind you will have cost of funds, soft costs, and carrying costs to budget for as well. For the purpose of this project, let us assume you need $350,000 of borrowed money to get the project from purchase to sale. Most lenders won't feel comfortable (at first) with this type of leverage so you stack the financing. You approach the majority lender who will lend $250,000 towards the project. This lender will get a first lien and mortgage on the property just like a bank. The remaining $100,000 will be lent by any number of smaller investors that are willing to lend via a promissory note with a personal guarantee and a guarantee from the entity that purchased the property. These lenders don't have a lien on the property and are lending off your personal finances, reputation, education, and the deal itself.
It's at this point where most people say to me "I'm not going to make any money because of all the interest”, but nothing can be further from the truth. Interest is an expense that you deduct from the ARV to give you your maximum allowable offer. Your offer might be lower than someone who isn't borrowing as much money but with the right lead generation system you will still get plenty of deals.
The most important thing to understand is that with greater leverage comes greater risk and responsibility. Before you take someone's money make sure you have invested significant time in your education and studying the market. I trained with my mentor for 4 years before ever doing a real estate deal and I suggest you find a mentor and do the same. Here is a link to a podcast I did with my mentor Carl Schiovone.
https://youtu.be/W4SngfpHJyw