How we helped our client purchase a property with zero money down.
In the current real estate market, finding creative ways to purchase property can be a game-changer. Today, I’ll walk you through a case study of how my clients legally purchased a property with zero money down.
My clients came into the game as pre-approved buyers, which gave us a significant advantage. We scoured the market and found a property listed at $500,000, with the buyers prepared to put down 10% as a down payment, which amounted to $50,000.
As with any real estate purchase, due diligence is key. We had the property inspected, and to our surprise, we uncovered a laundry list of issues – a new roof was needed, drainage problems, and more. This meant significant work lay ahead.
During post-inspection negotiations, we managed to reduce the property’s price from $500,000 to $450,000. Here’s where strategy comes into play.
Traditional real estate wisdom would dictate financing the purchase based on the new price of $450,000, reducing the buyer’s down payment to $45,000. However, we took a different approach, one that saved our clients a substantial amount of money.
Instead of changing the purchase price, we structured the transaction to remain at $500,000. We negotiated a cash-back deal at closing, securing $50,000 for our clients. They initially paid $50,000 as a down payment, and a few days later, they received the same amount from the seller.
This strategy had several advantages. First, the buyers acquired the property without any out-of-pocket expenses. Moreover, they had funds left to address the property’s issues.
This case demonstrates the importance of having a seasoned professional on your side. By thinking outside the box, we created an innovative transaction that not only saved money but also empowered our clients to tackle necessary repairs.
When you have the right professional with diverse experience by your side, you can craft unique real estate transactions. This is why I proudly call myself a “transaction engineer” in the real estate world.
In this case, our clients legally purchased a property with zero money down and still had funds to address essential repairs. While this approach may not fit every situation, it showcases the potential for creative thinking in real estate.
If you have real estate questions or want to discuss your specific case, don’t hesitate to reach out to me at (514) 917-6284. You can either call or text, and I encourage you to email your questions directly to me.