No Money Down Real Estate Financing

One of America's billionaires was recently asked the questions, "How do you do it? What is your number one wealth building secret?" Without even one second of hesitation he replied, "find what it is that people need the most, and give it to them."

Remember that statement. -- Give it to them.

There are literally hundreds of different ways to acquire real estate. In future articles, I will be sharing some of the many different innovative techniques used in creative real estate financing. In this article, were going to explore a very useful and profitable creative real estate financing technique commonly called Lease Purchase Options. For ease of explanation, we will refer to Lease Purchase Options as Lease Purchase.

What exactly is a Lease Purchase?

A Lease Purchase is a process where a rental agreement is combined with a purchase or an option contract. Price, length of contract, escrow instructions, rent credit and other pertinent terms are all negotiated in advance. This allows the tenant/buyer to have a defined percentage or dollar amount to be credited to a down payment or off of the total purchase price of the property when a payment is made.

First and foremost, you must know what needs, wants, and desires the "right" property will fulfill. It is obvious that those needs, wants, and desires will be the requirements of someone. That someone is the investor. It is the investor who establishes the value of any piece of property in the marketplace by his or her requirements.

A real estate investor always has only two considerations. Those two things are:

1. A return on investment or Profit. (also known as ROI)

2. A return of investment or Security.

Remember that no matter what the circumstances are surrounding an investment, these two considerations are always the same: some form of profit(i.e. dollars, property exchange or other goods and services, tax savings, personal use) and security, or an assurance that the original investment will remain intact and can be recovered.