How to Invest in Real Estate with No Money Down

Hey, this is Ian Flannigan and I want to show you “How to Invest in Real Estate with No Money Down.”

Now this is a very simple process and you can build a massive business model out of this niche.

First step is marketing for Buyers. This is the part that I really love because the best free resource for marketing for buyers is craigslist. The almighty craigslist, we all know what craigslist is. We’ve all used it a ton so whenever you start running ads on craigslist, this is the marketing message that I want you to place in the ad.

So go to craigslist, type in your city, the location of where you live and place this ad right here that says “House For Sale, Owner Financing, No Bank Qualifying.” Make sure to leave a local phone number for buyers to call you back. Now if you don’t have your lead intake system set up, you can drive calls to your cell phone or a Google Voice number or whatever number it may be, just get the ad out there and when buyers call, you want to prescreen them.

So the first thing you ask them for is their name, phone number and email address. The next part is to ask them about exactly what they are looking for, their criteria, where they want to live and what size property are they looking for. Somebody who has a family may need a minimum of three bedrooms and two baths. So make sure you know what they are looking for.

The most important information to get from them is, “what’s the most you can afford as a down payment and what’s the most you can afford as a monthly payment?” Now depending on how they answer those two questions depends on what price point house they can afford.

So you’re basically looking for motivated buyers from craigslist and you want to prescreen them after they call your ghost ads.

Now craigslist is a great free resource for finding sellers and I absolutely love it. I’ve bought a ton of properties by targeting the “For Rent” ads and also the “For Sale by Owner” ads that are online in your market and in your back yard. There are a ton of other sites to target as well like,, etc…

Now when you talk to these folks, just sound like an interested prospect. Ask them questions about their property and build some rapport with them. Ask them why they are selling and joke around with them to keep the conversation light. Now as you get towards the end of the conversation, what you really want to know is if they’d be willing to sell the property with a down payment and the balance in monthly payments. This is just a very easy way to ask somebody if they would be willing to finance you on the transaction and if they say yes, then you are in business.

Once you find out if they’d be willing to sell the house with a down payment, find out how much they want down and monthly. Then let them know you will send them an email with an offer. Always counter considerably lower than what they are asking. For this example let’s say they accepted $5,000 as a down payment and $800 as a monthly payment.

Once the offer is accepted you may have to put up a measly $10.00 deposit to bind the agreement but now you have a property under contract and ready to market to your buyers. Just know that you are trying to get a down payment considerably larger than $5,000 from your buyers. Somewhere around $10,000 to $15,000 to cover the down payment to the seller, pay closing costs and walk away with a profit.

The next step of the process is to contact the buyers via email and let them know you have a property ready to go and have all the buyers show up to the property at the same time. Yes at the same time. It brings out the competitive spirit and now you can weed out the buyers that are not serious and just talk to the ones who are.

Once you have a small group of buyers, have a prepared sheet of paper so they can write in their information and tell them whoever has the highest down payment gets the house. Let them know you will contact the highest bidder by the end of the day with the good news. Negotiate the final terms of the sale and get them to sign a contract.

Now you have a buyer on the hook that’s ready to close the deal and that’s when you get your check from the title company. So you literally put the deal together without having to bring any of your own money to the closing table.


Remember, marketing for buyers is the first step of the process and be sure to prescreen those leads thoroughly. Now when you have people on your buyer’s list that have cash, you can go over to the free resources that are already online in your backyard and find sellers.

Next, market for sellers by making an outbound phone call and simply ask them “would you be willing to sell your property with a down payment and the balance in monthly payments.” If they’re motivated, they’re going to say yes and then that’s when you send them over an offer, get the property under contract, line up your happy family and close the transaction.

So that’s “How to Invest in Real Estate with No Money Down.”

Best of Luck,
Ian Flannigan