A quick guide providing suggestions and strategies for purchasing real estate with No Money Down.

1. 2017
Special
Report
25 Ways to Buy Commercial
Properties with NO MONEY
DOWN
Key Fortune Formula components
By: Andrew Williams

2. By: Andrew Williams
1
25 Ways to Buy Commercial
Properties with NO MONEY DOWN
Key Fortune Formula components
Welcome to the very exciting and rewarding career of real estate investing. Congratulations
for taking ACTION and actively participating in YOUR financial future. Most people will
choose to stay on the couch or do nothing. They might actually tell you that you are CRAZY
for even attempting this. Which of you is the foolish one? It’s not you. I would rather
spend the next few years working hard so that I can enjoy my remaining years hardly
working! That’s right. There are thousands upon thousands of MILLIONAIRES in
America. You will be happy to know that 71% of them made their millions in real estate.
I’ve been INVESTING in real estate since 1988. Before I ever owned my first
property, I was involved in real estate and most often with my father. As a
college student (please do not think for a minute that you need a college
education to be successful at this) I was always looking for ways to improve
my financial situation. I owned my own car detailing business, worked in
retail and contracted odd jobs for cash. One day I drove past a home near
campus that was for sale by owner “FSBO or FIZBO”. I told my dad about it,
we crunched the numbers and we both knew it would be a great rental
property. I didn’t have any real estate experience per se, and I certainly did
not have any cash. So my CONTRIBUTION was finding the property,
providing sweat labor (no equity for me on this one) and property
management. It was a 3 bed/2 bath home with a detached garage. After my
father bought the property, we reconfigured the main house to a 4 bed / 3
bath and the detached garage became a 1 bed/1 bath apartment. My
REWARD was a college education paid by my father and a rent free
apartment (the 1bed/1bath apartment I converted out of the garage!) After I graduated
from college and moved away, my father sold that home and made $37,000 NET PROFIT…
not bad for 1991 and it was 10 times more than the cost of my college tuition.
“I would
rather spend
the next few
years
working
hard so that
I can enjoy
my
remaining
years hardly
working!”

3. By: Andrew Williams
2
I never forgot that lesson. In fact I consider it to be the most valuable of my entire college
experience. I was hooked for life but it took me a few years to start investing on my own.
My very first real estate investment property was an 8-unit apartment
building.Purchase price was $235,000 and used ZERO of my own money. That’s
right…$0 of my own dollars. Better yet, I refinanced it 1 year later, paid off my partner and
put $25,000 in my pocket. I still own this investment property and do not have partners,
any of my own money in the deal and have $25,000 in my pocket. What’s
even better is the $2000 per month in positive cash flow. Over the years the
value has gone up, and it has gone down but regardless of value that cash
continues to flow.
The lessons I have learned over the years have been extremely valuable to
me and I want to share them with you. I know that your chances of success
are much higher if I share my experience and systems developed over the
years. Seriously, if I can be successful at real estate investing, ANYONE can
be successful at it. Just follow a system and in a relatively short period of
time, you can be financially secure.
Does it take LUCKto be successful in this business? Or luck to find good deals? Do you
know the definition of luck? First of all, “luck” is just another four letter word and I have
eliminated it from my vocabulary. Luck is defined as “Opportunity meets Preparedness”.
It’s that simple. Ask yourself: Is someone with $1 million luckier than you? Or are they
simply in a better position to take advantage of an opportunity than you? As far as I am
concerned luck has nothing to do with it!
You have a very distinct and clear advantage over me when I started. What is your
advantage? You have me to show you what to do and how to do it. And something equally
as important, I can show you what NOT to do! It’s your choice. It’s your future. Eliminate
LUCK from your vocabulary. Never miss out on another opportunity. Get prepared!
“Luck is
a 4-
letter
word”

4. By: Andrew Williams
3
LEGAL STUFF
First, a word about NO MONEY DOWN: The “concept” of No Money Down should be
explained. This term is typically referred to as NONE OF YOUR OWN MONEY as in funds
from your traditional bank account. The strategies illustrated in this publication are
designed to structure transactions giving you control of the property with limited or
none of your own money. Some strategies require money but illustrate how to obtain
that money from alternate sources. This is still consideredaNO MONEY DOWN
transaction within real estate investing terminology.
The information contained in this publication is designed to be educational and
informative. It is intended to provide the foundation for a basic understanding and
principles of the subject matter it contains. The reader understands and acknowledges
that the author is in no way rendering legal advice, tax advice, accounting advice or any
other professional service. The reader acknowledges that there can be vast differences
between individual circumstances, state laws and property characteristics and that
strategies discussed in this publication are not designed to be applicable in every
scenario. If legal, tax or other expert advice is required, the services of a competent
professional properly licensed in your state should be consulted. The author has given
examples of actual cases and illustrations of profits, gains and positive cash flows. The
reader acknowledges that these examples are in no way a guaranty of profits or outcome
and individual results will vary.
The ideas, strategies and concepts of this publication are not presented as original or
new. These strategies have been used and practiced by many investors for decades. The
author has used many of the strategies covered and has compiled and presented them as
an educational reference guide and as an introduction to the subject matter contained.
Certain examples and references to transactions are actual while others are fictional and
for illustrative purposes only.
Reproduction of this publication in whole or in part without explicit written permission of the
author is a violation of copyright laws and will be prosecuted to the full extent of the law.

5. By: Andrew Williams
4
Table of Contents
Seller Involved Strategies
1. Owner Financing
2. Owner Equity Share
3. Subject To
4. Lease Purchase
5. Option
6. Trade or Exchange
7. Repair Allowance
8. Refinance with Seller Carry Back
9. Future Profits
10. Seller Keeps the Land
11. Future Income Pledge
Using your Network
12. The “Money” Partner
13. Private Lender Down Payment
14. Family Loan
15. Broker as Lender
16. Hard Money
17. Line of Credit
18. Signature Loan
Creative Finance Strategies
19. Land Sale Leaseback
20.Retirement Account Upgrade
21. Create and Manage an Entity
22.Tax Credits
23.Create a Note
24.Sell a Piece of What You Are Buying
25.Issue Stock

6. By: Andrew Williams
5
#1 Owner Financing
Owner financing is by far the most common way to buy property with no money down.
The concept is simple and assumes the owner is willing to finance either all or a portion
of the purchase price in lieu of receiving cash at the sale.
You might be surprised to find that many people own their properties free of debt or
have very small loan balances. Some of them are willing to finance the mortgage for you
to help accommodate the sale. Think of it this way; the seller is simply trading the cash
flow from operations to cash flow from mortgage payments. This is attractive to many
sellers for two reasons: 1st they no longer have to own or manage the property. 2nd they
may have tax advantages receiving monthly payments vs receiving a lumps sum of cash
at the sale. Both of these are good talking points for you when negotiating with the
seller and requesting them to carry the mortgage for you.
There are four common types of owner financing:
 Certain Date Principal Payment: You are asking the seller to delay receiving
their proceeds from sale (their money). NOTE: You have not offered to make
monthly payments, simply requested the seller to agree to accept their money at a
later date.
Understandably, not very many sellers will be willing to accept this type of
financing. But all it takes id for one to say yes and you just hit a home run so ask
for it every time! Typically they will say no and request monthly payments so
refer to the next option.
 Principal Payments Option: Notice in the previous paragraph I said
“monthly payments” and did not specify what kind? There are many types of
monthly payments and some are more beneficial to you, the buyer. The Principal
Payment Option is exactly that! You make payments of principal only, no
interest! So if a seller insists on having monthly (or quarterly) payments agree to
make payments of principal only. Simply take the amount owed, divide by the
term of the loan (20, 25 or 30 years) then divide by 12 to get your monthly
payments. Ask for the longest term you can get to have the smallest monthly
payment.
Example: $200K loan for 20 years (200,000/240) monthly payment = $833
$200K loan for 30 years (200,000/360) monthly payments = $556
 Interest Only Payments: If the seller isn’t interested in making you a long term
loan, ask to make interest only payments and pay the principal balance off in a

7. By: Andrew Williams
6
lump sum at a later date. This is commonly referred to as a balloon note and
typically has a term of 3, 5 7 or 10 years. In this payment option, the term of the
loan does not impact the monthly payments, they remain the same. The reason
for a longer balloon period is to give you as much time as possible before you
have to refinance or sell the property to pay the seller their lump sum.
Example: $200K loan, 5 year balloon, 8.0% interest. (200,000 x .08 = $16,000 /
12) monthly payments = $1,333 for 60 months (5 years) After the 5 year
balloon period the note matures and the principal balance is due and payable
$200,000
 Principal and Interest: This is also known as an amortizing loan. This means
that the monthly payment includes the interest due and a portion to reduce the
principal balance. This is how a loan (with interest) gets paid off. This type of
loan can be for 15, 20, 25 or 30 years OR it can have a balloon of 3, 5 7 or 10
years. If it is a balloon note, ask for the payments to be amortized over the
longest term you can get (typically 30 years) and will make your monthly
payments lower. When the note matures the loan will either paid off (amortizing
loan), or a lump sum principal balance will be due (balloon loan).
Example: $200,000 loan, 30 year term, 6.0% interest (you need a financial
calculator) Monthly payment = $1,478
#2 Owner Equity Share
Finding an owner willing to do an Equity Share is like finding an owner who is willing to
partner with you. The seller is willing to trade some of the cash they would get at closing
to an equity position in your property. Why would an ownerwant to do this? Maybe the
property isn’t in the best condition or it has been on the market a long time and hasn’t
sold. Some money is better than none. They are tired and just want out! You negotiate
an Owner Equity Share transaction.
Quite obviously this only works if the seller has equity in the property. The transaction
is structured like this: You create a new entity with the owner and you as partners. The
owner deeds the property into the new entity. The entity refinances the property with
the biggest loan possible and the cash from that loan goes to the seller. The remaining
amount of cash the seller did not receive (the difference between the loan amount and
your purchase price) is the amount of equity the seller has in your new entity and
represents their ownership percentage. An example will help illustrate this.

8. By: Andrew Williams
7
Example: Sales price $275,000. Current loan amount $75,000. Seller transfers title to
the property into the new entity and you get a loan from a bank. That loan is 80% of the
value (purchase price) which is also known as 80% LTV. The loan amount is $220,000.
The difference between the old loan and the new loan is $145,000 and that cash goes to
the seller. The remaining 20% or $55,000 ($275K purchase price - $220K loan) is the
percentage equity your new partner has in your entity.
The seller, who is now your partner has a 20% stake in your new business. This means
she is entitled to 20% of the cash flow and 20% of the value of the property. This is a
good deal for the seller as they will participate in your efforts to improve the property’s
cash flow and value. As both rise over time, the seller’s equity value also grows.
#3 Subject To
I always get asked the question, “subject to what?” This is a common term in both
residential and commercial real estate and simply means you purchase the property
“subject to” existing mortgages or debt. It’s as simple as that. The current mortgage
stays in the sellers name and the deed to the property is transferred to you.
This is a great way to take over a property with no money down. Most often this
technique is used when the seller or property is in trouble and not performing. You
negotiate to take over ownership of the property and responsibility for the mortgage
payments and expenses. The seller deeds the property to you in hopes they never have
to deal with the property again. As long as you can operate it and make the payments,
they won’t. The loan remains in the seller’s name; you are simply making the payments
going forward. You can make payments directly to the lender, or set up loan servicing
through a division of most title companies to do this (highly recommended). Typical
servicing fee is $25/month and they handle payment distributions, monthly statements
and annual accounting.
#4 Lease Purchase
A lease purchase is a solid strategy that isn’t widely out of the box. The term is familiar
to most people so it doesn’t intimidate them. This gives you a better chance of
negotiating a transaction and getting control of the property. In the lease purchase, the
due diligence is the same as for a straight purchase and the strategy is similar to a
Subject To. You lock in a purchase price, but also execute a lease with the seller and you
operate/manage the property from them for some specific (or open) period of time.

9. By: Andrew Williams
8
Since this is a lease, no down payment is required. The seller gets out of the day to day
ownership or management issues, does not have to transfer title (yet), and receives
constant monthly cash flow. You agree to take over the property as-if you were the
owner, responsible for everything including insurance and taxes, maintenance and
improvements, leasing and evictions. At some point in the future you complete the
purchase and become the owner of the property. Obviously in this strategy, (if you have
negotiated it in your contract) you can assign the property to another buyer or sell it
outright and do an ABC close keeping the difference between your price with the seller
and your higher price with the new buyer.
#5 Option
This strategy is very similar to #4 Lease Purchase except in this strategy you have an
option to purchase, not an obligation to purchase. This is a “try before you buy” strategy
and is one of my favorites. Have you ever bought something and after a few days or
months wish you hadn’t? When it comes to large transactions in a new endeavor, the
“option” can be very powerful. Some people are afraid to venture out and put deals
together because they lack knowledge, skill, experience or education. If you had an
“escape clause” would you be more likely to give something a try? Options can be
structured in many different ways.
I like this strategy a lot. It was my “go-to” when a big hotel deal I was doing in
Albuquerque NM started to go sideways. I had the property under contract for $2.1
million and the seller was going to carry. I was buying it subject to. I had arranged for a
20% down payment using #13 Private Lender Down Payment and when it came time to
close the transaction; my large investor could not produce the funds. I was at the
closing table with only ½ the down payment. We all looked at each other and I
suggested a Lease Purchase with Option and at first the seller said no and we all went
home. A few weeks later, they asked if I was still interested and within a few days I was
the proud “operator” of a 125 room hotel in Albuquerque.
#6 Trade
This technique is exactly what it sounds like. You can trade anything of value for
anything else of value. According to very specific tax codes, you can trade properties
and avoid (delay) paying taxes on capital gains (known as a 1031 Exchange and a
completely separate training session). If you are interested, there is a nationwide

10. By: Andrew Williams
9
association of real estate “exchangers” who specialize in negotiating nothing but real
estate trades.
Anything you have of value, equity in other real estate, cars, notes receivable, personal
property (gold, jewelry, art etc.) even services you can perform can be used. Get creative
and ask the seller if they would be willing to trade you their property for your valuable
item. You never know what they might be willing to do.
#7Repair Allowance
The repair allowance is something you should be asking for in every property you
acquire. But investment real estate like commercial or multifamily it is very common
practice. During your inspection, you document every repair needed and attach a cost
to that repair. At the end of your list is a number you should be asking the seller to give
to you at the closing. This is money you did not previously have and can be applied
toward the down payment, closing costs and repairs of course.
Example: Purchase a 12 unit apartment building and your inspection uncovers lots of
things including a leaky roof, old dirty flooring, old appliances in disrepair, A/C heating
units in desperate need of service or replacement etc. The average repair is $5,000 per
unit so you ask for a $60,000 repair credit at closing. I have seen this happen on
$200,000 purchases and the repair credit is more than enough to cover the down
payment, closing costs and some of the needed repairs. Regardless of the strategy you
are using, this technique is something you should use every time!
#8 Refinance with Seller Carry Back
This technique is very similar to the Equity Share Owner but the seller holds a second
mortgage instead of equity as a partner. It works like this: You follow the steps in the
Equity Share structure up to the part where the seller has an equity stake in your entity.
Rather than ex: 20% equity, the seller has a second mortgage for 20% ($55,000 in our
previous example) and receives some structured repayment (one of the 4 types of Owner
Financing) This strategy will save you lots of money in the long run since you are not
giving up 20% of the cash flow and 20% of the equity!

11. By: Andrew Williams
10
#9 Future Profits
This is a very straight forward negotiation. Similar to, and can be used in conjunction
with the Subject To strategy. If you have a seller who is in trouble but still not willing to
walk away and just let you take over, try this technique. Tell the seller that the property
is in trouble, and you are not willing to give them anything in its current condition.
However, if they agree to sell to you and let you operate and improve the property, they
can be entitled to a piece of the property’s future profits.
This is a negotiation of course and you need to do your best to give away as little as
possible. Also be sure to “define” what they will get in the future if and when profits are
generated. Do they get a percentage or fixed amount of any sale proceeds, monthly cash
flow, or both? It’s your efforts that will generate the future profits so don’t give too
much away. But something I always say is 50% of something is better than 100% of
nothing. If you don’t make this deal happen with the seller, you will not have an
opportunity to generate profits or cash flow. Negotiate wisely!
#10 Seller Keeps the Land
This is a creative way to get a property under control quickly and give the seller a solid
piece of security…the Land! The land and its improvements (the income producing
building) go together of course, but you can negotiate with the seller to “lease” the
building from them and operate the business to generate income.
The strategy involves a negotiation with a seller and establishing a value (typically the
purchase price) for the entire property. Then you determine what the value of the land
is void of any improvements. This can be done by obtaining an appraisal or looking at
comparable land sales with the same zoning and usage. As a rule of thumb, land is
typically valued at 20%-25% of total value. **NOTE This can change dramatically if the
property is in a HIGHLY DESIREABLE location like beachfront for example.** The
seller gets out of the responsibility of property management and receives lease income.
You operate the property and receive the income and depreciation with no down
payment by assuming the existing mortgage.

12. By: Andrew Williams
11
#11 Future Income Pledge
In this strategy, the seller will agree to receive their down payment at a later date. The
down payment can be made in payments or as a lump sum. This requires you to have
something you can use to pledge or promise the seller to assure your performance. For
instance, if you have income from a job or other investments that generate cash flow,
you can have your bank autodraft your account and make payments to the seller until
the down payment is made. Another example is if you have an asset for sale, you can
pledge the future proceeds as collateral and take over ownership of the property right
away while delaying the down payment until your asset is sold.
#12The “Money” Partner
This is one of my favorite strategies and one that I use most frequently. I am constantly
looking for income properties and simultaneously looking for Money Partners. It is the
conversation I am constantly having with both friends and new acquaintances.
Remember my favorite saying? “50% of something is better than 100% of nothing.”Both
new and experienced investors are looking for good opportunities and few are better
than real estate. I can talk on this for days so I will save the narration for another day
and get to the strategy details.
You find a suitable property and get it under contract. Put together a funding package
and present it to your potential money partner for review and approval. The basic
premise of the money partner is they put up the money to acquire the property and you
provide everything else. You find the property, vet the property, manage the asset post
acquisition including accounting and taxes, handle distribution of income and eventual
disposition of the property. For this arrangement I typically get a 50/50 partner. Since
this is a negotiation with your money partner, you can try to get more favorable split but
for illustrative purposes I use 50/50.
Some money partners will request interest on the money they contributed. If this is the
case, I agree but reduce the ownership split to 60/40, 70/30 or even 80/20 if I can get
it. I try to emphasize the value of my services as equal to the money they are
contributing so that they don’t insist on getting interest on their money. If they do insist
on getting interest on their money, I typically negotiate the next strategy.

13. By: Andrew Williams
12
#13 Private Money Down Payment
This is a simple strategy. Find someone willing to put money up for the down payment
in return for interest payments. Record them in a second lien position and negotiate a
term as long you can (5, 7, 10 years if possible). The interest rate will typically need to
be double-digits to find anyone interested in doing this but in my opinion, they become
a cheap partner!
Example: Purchase price $250,000 Bank will lend you 80% which is $200,000. You
will need to borrow $50,000 from a Private Money Lender and record their loan in 2nd
position. The interest on the bank loan will be 5%-6% on $200,000 and the Private
Money Lender will likely want 15% or more. These are typically interest Only loans so
the payment would be $50K * 15% (50,000*.15) = $7,500 / 12 = monthly pmts $625
#14 Family Loan
Most people have someone in the family with some money. You would probably never
think about going to them and asking for a loan. But what about asking them to partner
with you in a real estate investment? Sounds a lot better don’t you think? There are so
many ways to structure this kind of deal. I suggest starting small and see where it goes.
The most common ways to structure the deal (depending on how much money they are
willing to participate with) is to borrow the money from them for the down payment as
in strategy #11. As a family member they are typically willing to accept interest rate less
than 15% too. But I would give them options and let them pick the one they like best.
Examples:
Option 1 Private Money Lender at 12% interest for 10 years
Option 2 Private Money Lender at 7% and have a 5% equity stake
Option 3 Money Partner structured so you can buy them out some day
Option 4 Hard Money Lender provides short term loan at high interest until you can
stabilize the property and refinance it

14. By: Andrew Williams
13
#15 Broker as Lender
If you are working with a power broker, you know the type? They could be your next
partner! What better partner to have than someone in the know, connected and savvy.
Many of them have investments already and have money looking for a good opportunity.
Get your broker to find you a deal so good, they want to be in the deal too. Not only
would they help find a great deal on a great property but hey can contribute their
commission to the down payment. They are also very well connected so they can come
up with the rest of the cash, get great financing terms, and property management lined
up. You may need to come up with a little cash of your own in this scenario, but even if
you had to beg or borrow (never steal) to get it, this is the kind of deal you don’t want to
pass up.
#16 Hard Money
You are probably familiar with Hard Money in a residential real estate capacity. Well it
is the same for commercial properties. The loan is short term usually 6-12 months but
can be longer depending on the size of the property and the scope of work. The interest
rate and points tend to be higher than traditional financing but they lend off of after
repair value (ARV) and aren’t too concerned about your personal credit score as much
as the property specifics and income potential.
Mezzanine financing is a commercial real estate term you will likely hear. What is it?
Think of the “mezzanine” level in a theater or sports complex, it is the small area above
the main seating area but typically with great views. In loan terms, a mezzanine (
akamezz loan) loan is in 2nd position to a first or senior loan. Mezzanine lenders will
lend quickly, with little due diligence but require a higher interest rate AND terms of the
loan give them instant ownership if you default. This is definitely a source of funding
you may consider, but make sure it’s the right property and the right circumstances.
#17 Line of Credit (LOC)
A line of credit is one of the best sources of capital you can obtain. It is typically secured
by some asset you own, real estate, bank CD, business assets and/or cash flow. Because
it is secured, it can be fairly easy to get as long as you have good credit or your business
is established or profitable. The interest rates can be very reasonable since the loan is
secured by an asset and the money can be used for ANYTHING! When you pay the line
of credit off, it usually stays open. This means that the money is there for you to borrow

15. By: Andrew Williams
14
again as needed. With good usage payment history, the bank will often raise your limit
over time giving you more access to cash.
A personal line of credit will rely on your credit and requires personal recourse. If you
default, your credit will be affected and the lender can come after you personally for
repayment.
A business line of credit is based on your business. The lender may or may not require
your personal guaranty. If they do, a default will look the same as a personal LOC. If
they do not, (this is the preferred option and I will often agree to a higher interest rate if
I don’t have to give a personal guaranty) you have obtained one of the most highly
sought after loans lenders offer. Many investors will create and operate a business for
the sole purpose of obtaining a business LOC without a personal guaranty.
#18 Signature Loan
This loan is pretty much what it sounds like. Many loans decades ago were signature
loans. It is the highest level of bank and borrower relationship. It requires the borrower
to have excellent credit, assets, job stability and bank relationship. The loan literally
means that you walk into the bank, request a loan, they approve you with just your
signature on the loan document where you promise to pay the money back. Many terms
used today came from old lending lingo. Ex: A “promissory note” is the document
where the borrower “promises” to pay the loan back.
Because the loan is not secured by any asset, the interest rate tends to be higher than
secured loans. But based on your relationship to the lender, terms of the loan can be
negotiable. It never hurts to ask!
#19 Land Sale Leaseback
This strategy involves some creative negotiating and requires a seller to be open minded.
If you have all the players in place ahead of time, it can go down pretty easy. If not, it
can take some time and try some patience. The Land Sale Leaseback starts with you
getting the property under contract. (the property needs to be land and improvements,
not just land) You want to have a contingency in the contract allowing you to find
someone who is interested in owning the land portion only with the intention of leasing
it back to you as you are operating the business portion of the building. If you can do

16. By: Andrew Williams
15
this all subject to the sellers current financing, or get the seller to carry the financing if
they own the property free and clear even better!
The closing is structured so that the land buyer puts his money in escrow. That money
is used as your down payment to complete your purchase and the money goes to the
seller. Now you own the building and the business and you lease the ground it is on
making monthly (or quarterly) lease payments to the land owner.
Example: purchase price $275,000. You find someone (investor) to buy the land for
$75,000 and lease it back to you. You give that money to the seller. The seller deeds the
property to you and you deed the property to your investor who then executes the land
lease to you. You own and operate the business and pay the mortgage payment to the
seller and the land lease payment to your investor. You also get to depreciate the
building and write off the lease payments. Mortgage payment are not a write off but
lease payments are!
#20 Retirement Account Upgrade
I like this option because it educates so many uninformed people. I call it this because it
really does “upgrade” someone’s retirement account. It still amazes me how many
people are unaware that self-directed IRA’s can be invested in real estate. The easiest
version of this investment is by lending the money to a qualified borrower secured by a
note and trust deed. Refer to IRS code 408 for more details on prohibited assets (such
as life insurance and art) and prohibited transactions (like lending the money to you).
As a source of potential money for you to use in real estate investments, there are
literally tens of millions of Americans with over 1 trillion dollars in retirement accounts
and less than 7% know that they can invest that money in alternative assets like real
estate. When you consider the average annual return in these accounts is less than 5%,
how many people would be interested in earning 10%-15% in real estate secured
investments? You only need one person to start with!
#21 Tax Credits
Our fine government at work and perhaps it works in our favor this time. The
government provides tax credits to property owners who provide housing to low and
moderate income tenants. You can take those credits and sell them to corporations
looking to reduce their taxes. This money can be used as a down payment on the

17. By: Andrew Williams
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property you are purchasing or for the next property you want to buy. Sometimes the
credit can be large enough that you can buy several properties.
#22 Create a Note
You have the ability to borrow money on anything you own with equity. If a bank won’t
lend you the money, there are people out there who will. If you are trying to purchase
an investment property and you need to have a down payment, you may be able to
borrow the money from the seller by offering a second mortgage on your home or other
real estate you own.
If the seller is insistent on getting cash and moving on and you are having a hard time
finding a private money lender or money partner, consider sweetening the deal by
offering additional security in the equity of other assets. Simply create a note spelling
out the terms of the loan and the security.
#23Sell a Piece of What you are Buying
You have to LOVE the investor who came up with this one. Do you remember the movie
Pretty Woman? Edward (the character played by Richard Gere) is a rich, ruthless
businessman who specializes in taking over companies and then selling them off piece
by piece. The premise is simple; sometimes the individual pieces are worth more than
whole. If you can get a property like this under contract, you can sell off a piece or two
and take that money to pay cash for the remaining part (or at least a down payment)
that you want to keep. Or sell it all off in pieces and pocket the excess cash!
Example: A church in Scottsdale AZ has out grown its current location and finding
something bigger isn’t as much a problem as finding a way to pay for it. They found a
fairly modern but vacant car dealership with 7 total acres of land. They only need 3
acres and that contains the building and plenty of parking. The 4 acres to the rear of the
property is perfect for a developer who wants to build a luxury condominium complex.
The church is in escrow for the purchase of the 7 acre property for $5 million dollars and
is in escrow with the condo developer to sell 4 acres…are you ready for this? $1 million
dollars…per acre! The church will only have to pay $1 million for their new facility.
They were even able to get the condo developer to pay for all the closing costs and title
and zoning fees to get everything re zoned and platted.

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#24Create and Manage an Entity
This one can be a little more involved to get it going, but once you understand it and
have it going, it can be one of the best strategies for Zero Down. It is typically done by
forming an LLC for a partnership of investors. **Check with your state laws on this one
as it needs to be structured right or it could be deemed a security**The LLC should not
have more than 10 partners. Each partner’s ownership percentage (based on money
they contributed) and an operating agreement will spell out the basics and any
competent legal professional should be able to help you create this. You are always a
member of the LLC and in lieu of contributing cash;you find the property, structure and
form the LLC, assemble the partners and manage the asset.
Example: I have several behavioral health properties in Phoenix AZ. I have structured
them using this strategy. I have 7 partners who contributed a total of $350,000 cash
and we bought the facility (it’s a 5 bedroom house) with the cash each partner
contributed. I structured the deal so I am a 10% partner. I get 10% of the cash flow,
10% equity and 10% of the proceeds when it sells. I also got paid a $10,000 acquisition
fee at closing. This strategy is a little more involved, but can you see why I like it?!
#25 Issue Stock
Based on the title of this strategy you can already tell that a corporation must be formed.
To make it work in the context of a Zero Down strategy, you issue stock in your company
to the seller of the property for their equity. It solves their property management
challenges and starts a real estate business for you. The seller now has an equity
position in your company.
Example: Buy a property for $225,000. The seller owes $150,000 and has $75,000 in
equity. You issue them stock in your corporation worth $75,000 and the corporation
owns an asset worth $225,000.

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Closing
This list can change. Different strategies work at different times, places and conditions.
Knowing or at least being familiar with the different strategies gives you more tools. If
you only had a hammer in your tool box, then you are only hammering nails. But if you
have a tool box full of tools, you can handle anything that comes your way.
To eliminate LUCK from your vocabulary, you must be PREPARED to meet
OPPORTUNITY!
Another one of my favorite sayings is “ABLE” Always Be Learning. Now go be
successful!
About The Author
Andrew Williams grew up in Northern California and received a Bachelor’s Degree in
Business and Finance from California State University Chico. He is a consummate
entrepreneur and loves the freedom and challenge it brings. Drew is a full time father of
two incredible teenagers Madison and Myles and enjoys cooking, travel, golf and real
estate of course.
Drew is an active real estate investor with a portfolio of rental properties across most
asset types. He buys and sells real estate, structures real estate finance models and
enjoys speaking, teaching, coaching and mentoring real estate investors of all experience
levels.
Andrew Williams is a Real Estate Investor, Coach and Mentor. He has helped hundreds
of people nationally become successful or reach the next level in real estate investing
business. If you are interested in working with Drew, he can be reached at the
following:
Email: AndrewWilliamsCRE@gmail.com