Buying property with No Money Down AND for Free : MYTH or FACT?

There are many techniques or strategies out there to buy property. And one of the more popular and talked about techniques is known as the no money down technique, or NMD for short. This is the easy part – buying property with no money down. The challenging part is to buy it for FREE. Let me explain.

Many people I talked to have the impression that buying a property no money down equals buying property for FREE. It is 2 different thing altogether. You can buy a property no money down, but not necessarily for free.

Now, before we go to the technique, let’s discuss some basic fundamental of buying a property.

Let’s say you are interested in a property that is worth RM300,000. To buy this property,  you will first need to pay a 10% down payment or in this case RM30,000.

So now, how do we buy this property with no money down? Easy. Here are 3 strategies how you can buy this property with no money down.

1.Borrow the money

Let’s face it, with the economic situation these past few years, it would be quite tough for anyone to save money every month, let alone to have RM30,000 savings sitting in the bank right? So, to raise the down payment, one of the method is to convince your closest friends and family members to lend you the money. Also, you will need to let them know how are you going to repay them and what is the interest rate, if any.

2. Use your credit card

The credit card is a very useful tool. Those with a credit card are actually using the card as a source of loan. For example, let’s assume your statement date is on the 5th of every month. After the statement date, you make a purchase. Typically, you have as along as 50 days interest free of this money until your next due date.

One other feature of the credit card is the interest free installments plan that some banks still offer to its customer. How you can capitalize on this feature is to charge the 10% down payment to your credit card and then call the bank to have it converted into either a 24 or 36 months interest free installments plan. Voila! You just bought a property with no money down.

Having said that, I must caution you that if you do decide to use this strategy, you must COMMIT to settling the full amount on time, every month.

3. Research, research and research

This third strategy will need you to spend some time to do a thorough research. But hey, if you can spend some time to save some money, why not, right?

Typically, there are 2 markets from where you can buy properties with no money down. These are the primary market, or buying from developer; and the secondary market, or better known as subsale market.

Buying a no money down property from developer is pretty straightforward and simple. The research you need to do here is basically scour the Internet for new launches from Developers in your area and find out what are the packages being offered. More often than not, you will need to visit the Developer office, talk to the sales agent and ask all the right questions. I remember a time when a top-notch developer offered the 5/95 package i.e. 5% down payment (which I paid using my credit card; and then converted to zero-interest installment) and the rest of the 95% financed by the bank.

There you go, my 3 simple and straightforward strategies to buy properties with no money down.

Now, part 2 of the equation – which is how do we buy property with no money down AND for free? Well, here at Freemind Works, our community of investors are still able to execute this strategy both in the primary and secondary market.

In the primary market, again you will need to do some research. This time you will need to do more research than the last. Find out which new launches gives you not only attractive packages (like the 5/95 we spoke about), but also rebates. Rebate can be a 10% rebate or even as high as a 30% rebate (to attract the buyers who are already 70% LTV). After a certain drawdown period, you will get back the initial down payment you paid (be it 10% or 30%, depending on your eligibility). And that’s how you can buy a property for free.

However, as a property investor, do take note that while the entry cost for buying a property is very low and sometimes it’s free for us, we need to remember that there is installment that needs to be paid every month, hence you MUST do a property due diligence before buying a free property. Do not buy one that will burn a hole in your pocket.

I do share on the topic of buying property with no money down and for free. Find out more here


Kaygarn Tan

Kaygarn Tan is the Founder of Freemind Works, a Property Investment Coach and Property Investor. He is also Author of the best-selling book The Master Key Method to Unlock the Secrets of Property Investment.

He is a Biomedical Scientist by training and holds a Masters in Pharmacy majoring in Toxicology. He is an organized and systematic person. Applying the same principle in doing scientific research to get a desired outcome, he has the property investment system down to a science. He calls it The Master Key Method.

After accumulating a portfolio of properties that gives him passive income, he decided to quit his 9-to-5 day job and started mentoring others to invest in properties. He has since adviced and personally mentored thousands of people to buy their first, second, third and more properties at 20% below market value with 6.5% rental return, using a time-tested system.

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