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True Estate Investing – FSBOs vs. Agent Listings?

Many would be real estate investing professionals face discouragement because of the assumption that acquisitions require deep-pockets. Some even think the myth that nothing-down purchases are impossible.

The early 1980s era in real estate investing known as the Zero Down Real estate Movement was initiated by Robert Allen with his best seller, “Nothing Down.” After observing how commercial properties happened to be acquired with no cash down, Allen applied 50 techniques from the commercial real estate industry to the residential property marketplace. He was reportedly paid one dolars million advance royalties for the publication of his, and began holding real estate investing conventions across the country.

The Nothing Down era was an astonishing eye-opener to the public. Very few were aware of Allen’s predecessors, like Nick Nickerson, Al Lowry and Mark Haroldsen who wrote books on real estate investing requiring no money. Allen popularized the notion, and it was a solid public draw for his real estate investing seminars.

Nonetheless, several of Allen’s convention speakers were ultimately revealed as “con men,” and some bellied up. Robert Allen himself went bankrupt in 1996. The public generally concluded that Allen was probably a fraud, and that real estate investing was not possible without deep pockets.


The Wall St.Journal got wind of the Nothing Down Real Estate Investing Movement, and interviewed many investors who were using “Zero Money Down” techniques. The business editor of the Wall St.Journal interviewed me repeatedly (and others who knew of my real estate investing), and featured me in an editorial as one of the most successful investors in the nation who had purchased millions of dollars in rental property without the need for investment.

These previous unfolding events are pertinent to the conclusion of how to purchase real estate properties with funds which are limited.

I proved that properties could be acquired without cash (or credit) to the tune of $10 million in property investments during my first four years. I used a ten dolars bill in the acquisition of quite a lot of the properties of mine.

Purchases from FSBOs (For Sale By Owners) were possible through negotiations with motivated sellers. I bought millions of dollars in real estate properties with no cash or even credit by learning acquisition skills that required no money down.

On the other hand, real estate properties listed by real estate agents minimally require a down payment that spreads over the agent’s listing fee. These listed properties were no more beneficial than the FSBO properties, but the agent fees demanded cash upon acquisition. In astral city intervening years since the 1980s, I have bought some agent-listed properties, but my target acquisition continues to be FSBO real estate property from a motivated seller.

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