Do you need to have skin in the game?

If you’ve ever wondered whether no-money-down deals are possible, the answer is yes, but it requires the right approach. In a recent discussion, Melissa Fisher shared key strategies for working with lenders who typically require “skin in the game”.

Key Takeaways:

🔹 Pre-Funding Preparation

• Speak with brokers early to understand lender requirements.
• Identify lenders who accept no-money-down deals—traditional lenders may resist, but private lenders are often more flexible.

🔹 Finding the Right Broker

• Some brokers only work with traditional lenders, while others specialise in creative financing.
• Partner with brokers who understand non-traditional or private funding sources.

🔹 Understanding Lender Expectations

• Lenders prioritise borrowers with a strong track record and clear exit strategies.
• Initial Loan-to-Value Ratios (LVR) might be lower until trust is built.

🔹 Negotiating with Vendors & Lenders

• Some lenders may offer only 50% LVR to reduce their risk—negotiating strategically is crucial.
• Higher interest rates and feasibility reports may be required to justify the investment.

Shifting Your Mindset

Instead of asking, “Can I do no-money-down deals?”, the real question is “How do I structure it to work?”

• Ask the right questions to brokers and lenders upfront.
• Prepare documentation to support your deal’s feasibility.
• Build strong relationships to establish trust with lenders.

With the right preparation, lender relationships, and strategic deal structuring, no-money-down deals can be a reality. If you’re looking to dive deeper into this strategy it will be discussed at the next bootcamp.

You can also join us for the next call by submitting your question below, or listen to some of the past recordings right now.