Does No Money Down Real Estate Make Sense?

Today I'd like to speak to you about non-exposure.

When you purchase anything with a view to make a profit and not for personal use, you must make educated decisions about certain things. These things all have to do with risk. The risk you take, is that the investment you made is retrievable and hopefully a little bit more ontop to make the risk you took worth while.

If you bought a house for 100k including entry costs and you sold it immediately for 115K

then you made a profit of 15%

What was the amount at risk?

a/ 100k

b/ 115k

c/ only the deposit you put in to get the bank loan?

of course it was c/ that was your real dollar for dollar risk.

If you put in 10k and got that back and made 15k then your return was not 15%

Your real return was 150% because that was your investment.

But answer me this, what if you put in nothing? Try and calculate what your return is if you put in $0 and made $15,000 You cant, the figure is astronomical

If you started with 10k and compounded that money at 150% per year for 10 years-how much money would you have? Get the calculator out and a nurse standing by. You would have over 38 million dollars.

What if you started with $10,000 and your compounder was infinity. Your results would be amazing.

Thats what no money down investing can do for you.

The point is this... and read this next part carefully before I leave you.

No money down means no waiting. Theoretically, you need not wait 10 years to compound 10k into 38 million dollars. You could do it in 1 year using people leverage. (staff) Why? because when you have 10k and you use it to do deals, you can only do so many deals. You are limited by the previous size of your seed capital account.

But when you discover how to control deals without needing any money down, you can do 100 deals per month because you know how to do no money down.

My very best to you.

Martin Thomson - EzineArticles Expert Author

Martin Thomas is a professional investor. He invests in Real Estate, Automobiles, Sea going Vessels Businesses and anything of value that may be converted into profits. He and his associates maintain a website http://www.opportunity-investor.com They reveal their money making strategies and ongoing insights. This is a free content site.