The Special Advantage of No Money Down Real Estate

Its a well know fact- 8 out of 10 millionaires today, made their fortunes in Real Estate. However what is obscure is the fact that Real Estate ownership is absolutely common. Nearly every second adult has owned or owns Real Estate. Its obvious that every second adult is not a millionaire, so what is the little thing these millionaires do with Real Estate that the rest of us don't?

I can assure you buying Real Estate with no money down is an advantage. Imagine not having to come up with the 10% money down or even having to qualify for bank loans. The advantages are never ending from a financial perspective.

It may be seen as something that only the people without any actual money might want to be interested in. That is naive. The wealthy do no money down all the time. Its HOW they got rich in the first place. People without money are in exactly the same position that the rich are.

The most special reason that no money down methods deliver fast and sure Real Estate wealth is this. NON EXPOSURE.

To understand non exposure and astronomical returns, we need to go back to the basics of wealth building. Every man that decides to be rich does this at some stage and conciously follows it. They sit down one day and quietly tap away on a calculator.

They discover compounding and how magically it transforms small figures into big figures very rapidly indeed. If you started with $10,000 and compounded it for 10 years at 100% per year, you would have over 10 million by the tenth year. (just type in 10,000 and multiply it by 2 10 times.

Now, when you buy a nice little house thats going a little cheap which you would like to rehab and sell, your exposure is never counted as your full buying price. If you put down $5k as a down payment and another $5k as legal expenses and another $5k for the clean up and paint job, then your exposure is $15k not the whole value of the house.

When you sell that little house for a $20k profit above all costs, your return is measured against the risked funds, not the full value of the house.

So you risked $15k to get that back AND the $20k profit. That means your return on investment was 130% Now get your calculator out again and try typing 10,000 multiplied by 2.3 (which is equivalent to %130)over 10 years. The difference is staggering. $41 and a half million. Over 30 million more then the first calculations. Just by adding that 30%

What if 200 or 300 % per year could be achieved? Well I will let you do the calculator punching, but my guess is you will get error messages on your calculator screens before you got to the tenth year because the numbers got so big so quickly.

Yet, that is absolultely possible.You dont need to find unbelievable deals and big time buyers to make these returns. You see, another way of jacking up the compounder is to reduce the money risked to acheive the same results.

For example in the first case we risked $15k for a return of $20k What if we managed to get the same result, the $20k but only risk $2k? how would that increase our compounder? DRAMATICALLY!!! This $2k investment for a return of $20k represents 1000% per year.

We still have $13,000 left in our bank account that we can do another 6 and a half other deals because now we are doing deals that deliver $20k returns for just $2k risked.

Try multiplying $10,000 by 1000% or just multiply it by 10 for 10 years. You cant, your calculator jams after about 4 years.

What if you could do no money down deals?

What if you learned exactly how its done, and perfected it so you never need to find a cent to deal in real estate? Thats the meaning of astronomical returns. It cannot be calculated. Thats the meaning of non-exposure. You cannot lose what you havent put in. Its called being bullet proof. A man that knows how to do this is a sure bet to be wealthy very soon.

May success find you fast and knowledge find you sooner

This article may be cut and pasted by anybody any time as long as the article is not altered in any way. The link must remain active and the resource box below must be added at the end. This article may be posted in forums used in blogs or other websites freely as long as this condition is met- copyright opportunity-investor.com

Martin Thomson - EzineArticles Expert Author

Martin Thomas is a professional investor and author. He enjoys sharing his insights about his own journey. If you want to see how Martin got involved in Real Estate and what he did in the early days and the knowledge he found and where he found it. Click on this link http://www.opportunity-investor.com.