Dictionary of Real Estate Terms: no money down
no money down
general term referring to real estate acquisition strategies based on seller-provided financing and/or existing loan assumption and minimal use of cash down payments. It is a method of achieving maximum profits from real estate investments.
Example: Allen purchased three houses using a no money down strategy. In one transaction, Allen assumed the existing mortgage of $55,000, gave the seller a note for an additional $30,000 and transferred ownership of an automobile worth $5,000 to finance the $90,000 house with no cash down payment.
