To Buy Notes With No Money: How

Elias called her. "Mrs. Gable, that note is a headache. You aren’t getting payments, and you don’t want to foreclose. What if I take it off your hands?" "I just want my $50,000 back," she sighed.

Buying notes (specifically real estate promissory notes) with no money down is a classic "creative finance" strategy. It relies on finding a problem to solve rather than just a price to pay. how to buy notes with no money

"Marcus, I have a $50,000 note on a property worth $100,000. I have it under contract for $30,000. Give me $35,000. You get a secured note at a massive discount, and I keep $5,000 as a 'finder’s fee'." Elias called her

He secured an option to buy her note for $30,000 (a discount, since it was non-performing). He gave her $10—literally a ten-dollar bill—as "earnest money" to make the contract legal. You aren’t getting payments, and you don’t want

Asking the note holder to "carry the paper" while you work to resolve the property's issues.

Elias walked away with $5,000. He had "bought" the note and sold his interest in it without ever touching his own bank account. He took his $5,000, went back to his spreadsheet, and looked for the next zombie. Key Takeaways for Your Draft

Elias had exactly $42 in his bank account. To buy a note, he didn't need cash; he needed a and a wealthy partner .