Grant Cardone gives you the 5 best practices for investing in real estate with no money down.

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There is really no such thing as ‘no money down’ because no matter how you cut it, this is going to take time—and time is money. And Grant wishes he had spent more time raising money from others to invest, so that he could control properties with other people’s money. He gets a lender to give 70-75% of the purchase price and then writes a check for the remainder.

Here are the 5 basic ways to do deals with no money down:
1. Owner Financing
2. Borrow From A Private Lender For Down Payment
3. Signature Loan
4. Subject To
5. Equity Share Investor

No matter how you cut it this takes contacting buyers, looking in your market, prospecting and sales skills and lots of motivation.

You have to find the right product—then you need to sell someone on doing this with you.

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  • andybeigel

    I’ve learned so much from this show over a short period of time, and I can’t wait to hear more today. Thanks, Grant. Applying your concepts and mentality is going to change my life!

  • Warren Cassell Jr

    Grant, I really appreciate you taking the time to do this. You need to do a webinar on multifamily.

  • Blake Woodham

    Hey Grant, first time listener here. Sent you over a 4-pex that I am considering. Let me know your thoughts if you have time…

  • WilliamPierce

    Tuned in!

  • GrantCardone

    if you have a question post here….

  • EdmundoRamirezM

    I hope you can get the 5 points written down somewhere.

  • Roger Noble

    Hi Grant from Surfers Paradise, Gold Coast, Australia…… “Australia’s Miami”….. My question: I develop manufactured home estates for over 50’s….. Great annuity every year through rents (0% vacancy rate) plus development upside from house sales….would you be keen to look at deals like this in the new world of Australia?

  • Newportfin

    Hey Grant!
    Heard you on BP and have been devouring your stuff. Looking at apartments today!! Awesome content!
    Andy Nissen 615-456-5391

  • RyanBillingsley

    BP turned me on to you!  Read your book 10x rule.  Great stuff, very motivating!

  • Newportfin

    4 units for 150K
    500/mo each unit

  • powerful content .Arthur Robinson Jr. Grant you are a Blessing.

  • Blake Woodham

    Im here, lol. I was going to be using a VA loan so that would allow me to acquire the 4-plex for Zero money down; and produce a positive cash flow each month.

  • Lukeskycar

    Whats up G !

  • Dennybee10

    Glass half full great way to look at things

  • NicosMind

    Grant what is better a degree in real estate or a degree in finance?

  • Having an issue calling in…  Getting error message..

  • Tucker Update: Made his $100 goal.  Unreal how inspired he has been this past week to get out and work.  Thanks so much, Grant!

  • JustAskBen

    BrandonAtBP GrantCardone How about Virtual Coffee Shop on CardoneZone next time…haha?

  • jilly

    I’m in the UK and need a glossary as you clearly have different names for things than we do! Can you do show again some time but explain what each of these terms/words mean?

  • JD Monroe

    GrantCardone I got to hear you on the BP podcast since then I have been watching all your stuff here. You are great!!! Real Estate is all about the numbers. So people forget to focus on selling themselves to banks, investors, partners, etc. I just bought he 10x rule and sell or be sold. it is truly going to take my business to the next level.

  • I love the intro!

  • GrantCardone its not the price you pay but how you pay it.

  • jagteam1

    NicosMind He would tell you neither, Grant doesn’t believe that you need college

  • Great Stuff. Thx GrantCardone

  • GrantCardone

    @jilly no problems happy to

  • GrantCardone

    @JustAskBen BrandonAtBP GrantCardone whats the virtual coffee shop?

  • GrantCardone

    gmac13luk Call in next week and we will double him up.

  • GrantCardone

    NicosMind it doesn’t matter — get a degree in something you will use when you get out

  • GrantCardone

    @Blake Woodham great idea…wish i could do that

  • GrantCardone

    arthur robinson jr thank you

  • GrantCardone

    Roger Noble can’t reach that far and have enough control – thanks

  • GrantCardone

    EdmundoRamirezM
    5 Ways
    to Buy Apartments with No money down
    First
    let me say that there is really no such thing as no money down because no
    matter how you cut it this is going to take time and time is money.  So whether you take time and work and save
    money to invest the way I have and then use that money saved for a down payment
    on an apartment deal or whether you go to a seller and get them to finance your
    deal or get friends and family to be investors someone is coming up with the
    money to buy your deal.
    Saying
    that I wish I would have spent more time raising money from others to invest so
    that I could control properties with Other People’s Money.   The way I have bought properties is I get a
    lender to give me 70-75% of the purchase price and then write a check for the
    remainder.  
    The way
    others would do this is they would get a similar primary loan and then raise
    the money for the equity  (cash
    down).  Then they tell people they did a
    deal with no money down.  I truth they
    didn’t’ they borrowed the money or took in investors.
    Either
    way its going to take TIME and time is money…..
    Here
    are the five basic ways I see to do deals with no money down. 
    1. Owner Financing. The most
    common way to buy a property with no money down is to use owner financing.
    This occurs when the current owner agrees to finance either all or some
    part of the purchase price, instead of getting the cash now. You’ll be
    surprised how many people own their properties free and clear, and are
    willing to finance the entire amount or a good portion of the mortgage.

    Usually,
    though, you will be getting secondary financing from the owner. That means you
    will get the majority of the money (the first mortgage) from another source,
    like a bank, and the seller will give you the rest in the form of a second
    mortgage.
    There
    are 3 types of owner financing to that you could ask for:
    Type 1:
    Ask for the principal to be paid at a certain later date.
    If you
    notice, I didn’t mention monthly payments for interest; only that the principal
    be paid at a later date. Why pay monthly payments or interest if you don’t have
    to? Who would go for this? Most sellers won’t…but some will.
    Type 2:
    Principal divided into monthly payments. Again no interest; you’re paying off
    100% principal. That’s a great deal for you
    Type 3: Ask for interest-only
    payments, with the principal to be paid off with a “balloon” (also called
    “bullet”) mortgage in 5 years.
     In this example, we offer 8% interest on
    $100,000 of owner financing. Multiply $100,000 by .08 and get $8,000. Divide
    the $8,000 by 12 and get a monthly payment of $667 per month. You then
    must pay off the entire principal balance at the end of the fifth year.
    You would typically do this by
    either selling the property or refinancing it.

    2.
    Borrow From A Private Lender For Down Payment. If you’ve got a great deal, but
    don’t have the money for a down payment, find a private lender.
    This is
    any individual that has extra money set aside that you can use for your
    purchase. This person can be a family member, friend, dentist, doctor, dry
    cleaner, a member of your real estate investment club, etc or Hard Money lender

    Millions
    of private investors out there that have money.
    After
    you get one or two lined up and you start to use them successfully, watch what
    happens:
    3.
    Signature Loan. Take out a signature loan at your local bank for the down
    payment. Don’t use the same bank that you used for your first mortgage on the
    property.
    4) Subject
    To — Take over multi-family properties subject to the existing mortgages.
    This means that the mortgage stays in the current owner’s name, but the deed is
    transferred to your name. This is a great way to take over a property with no
    money down. This situation usually arises when the property is not performing
    and the owner is in trouble with the bank.
    5.
    Equity Share Investor.
    This
    means you will share what equity is created in the property with an investor
    who will give you the money for a down payment.
    For
    example, an investor gives you 20% of the purchase price to put down on a
    property. In return for this down payment, the investor will get 20% of the
    monthly cash flow, and 20% of the profits upon the sale of the property.
    Additionally, the 20% that is put down will be treated like private money.
    Private money is a second mortgage on the property.
    No matter how you cut it this takes contacting buyers,
    looking in your market, prospecting and sales skills and lots of motivation…
    You have to find the right product – then you need to
    sell someone on doing this with you.

  • Hi. Grant Cardone this is your friend Arthur Robinson Jr.

    Grant you are a True Blessing to the World. It was a bad connection with My Cell phone when I was talking to you on your powerful show.
    It was hard hereing you.

    I want to be your Bird dog and I want to build a powerful Relationship with you Grant and to help you Expand your Real estate Empire.
    I know you like income property.
    It is a Multi- Family Property 128 units in  Harleysville Pa, the Commercial Broker told me the Whisper price is $17 million 

    which is almost $ 133,000 price per unit the property is 95% Occupied 

    1. I have seen some of Sellers information on the Offering Memorandums.

    2. The Building Size is 101,760 SF 

    3. Property Type Multi-Family

    4. Property Sub-Type Garden Low Rise.

    5. Property use Type ( investment)

    6. Cap rate 6%

    7. Status  Active .
    8. 1 bedroom and 2 bedrooms .
    9. Robust Demographics 2014 Average Household income within 3- Mile Radius is $ 106,189 
    10. Significant value – add opportunity 
    11. The Rents can be increased compare to the other apartments in the Area .
    12. The Seller is Motivated to sell.
    13. The Net operating income is $854,484.92 
    14. Total Expense Recoveries $ 119,474.03 
    15. The Rent Roll one bedroom is $875 a month and 2 bedroom is  around $1200 a month 

    16. The Total property Taxes $ 142,035.90 

    The Property is in a Phenomenal Location.

    I know when you increase the Net Operating income you will increase the value to this income property.

    Grant this income Property is Generating Cash Flow.

    17. The Mortgage is a Commercial loan the information on the life of the loan is TBD .

    Grant Cardone I’m looking forward Building a powerful Relationship with you By adding value to you and  Cardone Acquisitions as being your Bird dog

    Helping you find Cash flow Real estate.

    Lets connect.

    May god bless you Grant Cardone and your family and your team.

    Talk to you soon.

    Arthur Robinson Jr.

  • Grant Cardone and Bigger Pockets together is like chocolate and peanut butter.

  • CardoneMedia
  • NickTesta

    Grant, I’m 19 years old, I want to do this. would you advise me to become a realtor before i do this or should i just use someone else as a realtor?

  • Melissa_ATL

    Grant you are awesome! I work in the Atlanta market and have been wholesaling for 2 years now. My plans are to get started on a 30-50 units by the end of this year with my own money and some financing. This video helped a lot. Thank you for all this content!