Sunday, November 29

Real Estate Investing – FSBOs vs. Agent Listings?

Many would be real estate investing professionals face discouragement due to the assumption that acquisitions require deep-pockets. Some even think the myth that nothing-down purchases are impossible.

The early 1980s era in real estate investing known as the Zero Down Real estate Movement was initiated by Robert Allen with his best-seller, “Nothing Down.” After observing how commercial properties were acquired with no money down, Allen applied 50 techniques from the commercial real estate industry to the residential property marketplace. He was reportedly paid one dolars million advance royalties for his publication, and began holding real estate investing conventions across the nation.

The Nothing Down era was a surprising eye opener to the public. green towers happen to be aware of Allen’s predecessors, like Nick Nickerson, Al Lowry and Mark Haroldsen who wrote books on real estate investing requiring no money. Allen popularized the notion, which was a solid public draw for his real estate investing seminars.

Nevertheless, several of Allen’s convention speakers were ultimately revealed as “con men,” and some bellied up. Robert Allen himself went bankrupt in 1996. The public generally concluded that Allen was most likely a fraud, and that real estate investing was not possible without deep-pockets.

The Wall St.Journal got wind of the Nothing Down Real Estate Investing Movement, and interviewed many investors who were using “Zero Money Down” techniques. The business editor of the Wall St.Journal interviewed me repeatedly (and others who knew of my real estate investing), and featured me in an editorial as one of the most successful investors in the nation that had purchased millions of dollars in rental property without any money.

These previous unfolding events are pertinent to the conclusion of the best way to purchase real estate properties with funds that are limited.

I proved that properties could be acquired with no cash (or credit) to the tune of $10 million in property investments during my first 4 years. I used a ten dolars bill in the acquisition of a lot of my properties.

Purchases from FSBOs (For Sale By Owners) were possible through negotiations with motivated sellers. I bought millions of dollars in real estate properties with no credit or perhaps cash by learning acquisition skills that required no money down.

On the contrary, real estate properties listed by real estate agents minimally require a down payment that spreads over the agent’s listing fee. These listed properties were no more beneficial than the FSBO properties, but the agent fees demanded cash upon acquisition. In the intervening years since the 1980s, I have bought some agent listed properties, but my target acquisition continues to be FSBO real estate property from a motivated seller.

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