One of the most frequent questions we are asked is "Can you really get homes for $1.00-10.00 down?
The answer is Yes!
It seems that most folks have a hard time believing that this is really possible and we can definitely understand that.
It seems most folks think that we are calling up home owners and saying "Hi, my name is TC, and I am a really nice person and I was wondering, would you be interested in selling your home
to me for $1-10.00 down?"
If we did that we would be laughed at and probably hung up on!
Now understand that doing 1-10 dollar deals is like a recipe, similar to a food recipe.
For example, if you were going to bake a cake, there is a recipe that not only gives you the ingredients but also the steps you must take to successfully bake that cake.
If you decided to add the eggs anytime you wanted to, say after the cake was baked in the oven for 45 minutes, would you have a successful cake?
No you would not!
The same thing applies to $1-10.00 down!
There is a sequence to be followed and a reason that it is incredibly effective when you use it.
Now let's get this straight... This does not work on every home that is for sale! But as we have discussed before, it does not have to work with every home for sale!
We will not discuss the exact recipe in this article but let us say this...You must put something down on a contract for it to be legal and binding.
It is often referred to as "Financial Consideration".
If you and the owner of record sign a contract it is not legal and binding without there being "financial consideration" in the contract.
Now here is the great part...
Even $1.00-$10.00 down is considered "financial consideration!"
That's right! Even if you only put down one measly dollar, that is still considered "financial consideration" and makes that contract legal and binding!
Now we know what you are thinking, "Why would an owner agree to
take $1-10.00 down on their home?"
That is a great question!
Here is something that will be very important for you to remember in your real estate investing career so please remember this...
When negotiating a real estate deal there are basically 2 main
areas to be negotiated:
Price or terms!
If we give an owner of record their price, then they must give us
our terms!
As an investor we are not going to give an owner both price and terms. If we are going to give an owner of record his price, then we are going to get our terms!
The reason that our offers get accepted is that we give the owner of record exactly what they are looking for in that deal!
The key is to determine exactly what the owner of record is looking to do in that deal.
This is never an adversarial position and the owners of record are actually happy to do business with you!
Remember folks, investing in real estate requires a recipe. As long as you follow that specific recipe correctly you can duplicate that result as well.
The bottom line is that it is possible to do and is like a "knife slicing through hot butter" when done the correct way!
