Dear Property Doctor,

Does zero down property still exist?

This is a great question and the answer is YES & NO. “Zero Down” basically means buying a property using none of your own money. In terms of the old fashioned way of declaring the gross value of a property and getting mortgage based on this is definitely a BIG FAT “NO NO”. This is basically mortgage fraud and should be avoided like the plague. This practice was quite common place a few years ago by some rather shady property companies.

In terms of “Zero Down” yes it can be done. There are several ways possible these include :-

1. Lease options – where you secure the right to buy a property without generally putting any deposit down – usually the option fee is just £1 although there will be legal fees on top.
2. JVs – use someone else’s money. JV’s have become much more popular since mortgage lending became much more difficult a few years ago. There are many cash rich investors looking to make a healthy return but simply don’t have the time to go and find deals for themselves. This can be a great strategy. A good place to find potential JV partners are local networking events. Before you do any JV’s its important that some sort of legal agreement is signed between both parties.