The Real Estate Financial Planner Blueprint™
Sam Sells His Way To Financial Independence

Purchased Subject-To Property 16 Property
Bought in Month 42

We have a Rule that has you buying the Subject-To Property 16 Property even if your Account balance in the All-In-One Checking Account Account has zero dollars. The following is a chart showing the balance of All-In-One Checking Account Account from the start of the Scenario to Month 42 after we've adjusted for all the income and expenses for the entire month.

Nothing Down Financing

To purchase the Subject-To Property 16 Property, we're assuming you're getting a nothing down loan. That means you don't need a down payment to buy this home.

As of the time of this writing (and loan programs do change from time to time), there are 3 sources of nothing down loan programs: USDA, VA and local lenders with special loan programs.

USDA

The USDA loan program is a nothing down program that allows you to buy a home, as an owner-occupant, with nothing down. The limitation is typically that you need to buy a property in a rural USDA eligible area. If you happen to live in a larger city, the chance of your home qualifying for a USDA loan is essentially zero. However, often there are cities near you that will qualify.

You can check to see if homes around you qualify for USDA by going directly to the USDA eligibility map:

USDA Eligibility Map
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

VA

The VA loan program is a nothing down program that allows veterans or others with VA benefits to buy a home, as an owner-occupant, with nothing down. The limitation with VA loans is less about the property (although VA loans typically require a special type of appraisal that checks for health and safety issues on the property) and more about the person getting the loan having the VA benefits.

One of the nice things about VA loans is that you can use them to buy single family homes, but you can also use them to buy duplexes, triplexes or fourplexes as long as you are owner-occupying at least one of the units.

Local Lenders with Special Programs

Beyond the USDA and VA nothing down loan programs, the only other loan programs that I am aware of that allow you to buy a home with no down payment are the special local lending programs I've seen with local lenders. The loan programs I've seen typically are used to help buyers with great credit scores and solid employment, but who earn below the median income in an area, buy a home. For example, in my local market there are two lenders that offer these special nothing down loan programs to buy single family homes: KeyBank and Compass Bank.

You'll want to talk to your real estate broker and local lenders to find these types of special lenders in your local market if they are of interest to you.

Additional Traditional Financing Resources

Beyond talking to your own lender, we have some pretty extensive additional resources for financing properties including financing owner-occupant properties, Nomad™ Property properties and investment properties. Here are some of the classes we have that go over the financing in detail.

Amazing Financing Strategies for Real Estate Investors Class Recording
https://RealEstateFinancialPlanner.com/amazing-financing-strategies-for-real-estate-investors/

Financing Classes
https://RealEstateFinancialPlanner.com/financing-classes/

Creative Financing Resources

Of course, this discussion of nothing down loan programs specifically ignores an entire discourse on buying Properties with creative financing like getting owner financing and buying subject to the existing financing. For more information on buying Properties creatively, you can access the following additional resources.

Creative Financing 101 Class Recording
https://RealEstateFinancialPlanner.com/creative-financing-101-2016-edition/

Owner Financing Class Recording
https://RealEstateFinancialPlanner.com/owner-financing/

The total cost to close must also include the rent ready costs ($0) and closing costs ($520.05) minus any seller concessions ($0).

Description Amount
Down Payment $0
Rent Ready Costs $0
Closing Costs $520.05
Seller Concessions $0
Total Cost To Close: $520.05

The monthly rent on this Property is $1,703.39 per month.

Return in Dollars + Reserves

Property Appreciation Cash Flow Debt Paydown Cash Flow from Deprec.™ +12 Mos Reserves @ 8% RID+R12™ Total
Subject-To Property 2* $0 -$1,217 $417 $0 $97 -$703
Subject-To Property 3* $436 -$1,100 $827 $104 $216 $483
Subject-To Property 4 $3,667 $2,503 $4,803 $1,281 $1,431 $13,685
Subject-To Property 5 $4,468 $2,316 $4,987 $1,286 $1,483 $14,541
Subject-To Property 6 $1,664 $1,385 $4,907 $1,289 $1,465 $10,710
Subject-To Property 7 $6,214 $1,246 $4,959 $1,295 $1,492 $15,205
Subject-To Property 8 $6,571 $2,073 $4,881 $1,310 $1,484 $16,319
Subject-To Property 9 $4,680 $716 $4,977 $1,316 $1,511 $13,200
Subject-To Property 10 $5,471 $770 $4,961 $1,323 $1,512 $14,036
Subject-To Property 11 $4,504 $823 $4,973 $1,322 $1,518 $13,140
Subject-To Property 12 $9,232 $1,282 $4,815 $1,327 $1,483 $18,139
Subject-To Property 13 $4,750 $1,418 $4,692 $1,330 $1,454 $13,645
Subject-To Property 14 $6,225 $2,339 $4,478 $1,335 $1,406 $15,782
Subject-To Property 15 $8,126 $908 $4,920 $1,342 $1,522 $16,818
Subject-To Property 16 $5,675 $2,008 $4,568 $1,346 $1,437 $15,034
Subject-To Property 17 $4,416 $2,815 $3,803 $1,235 $1,222 $13,490
Totals: $76,097 $20,284 $67,967 $18,441 $20,733 $203,522
* Denotes a property that had no rent for at least part of the period covered.

Asset Allocation

How are assets allocated? Let's first look at this month.

And how have they looked over time up to this month?

Phases of Financial Independence™

With a Minimum Target Monthly Income in Retirement™ of $2,500 and a Ideal Target Monthly Income in Retirement™ of $6,000 at the time of achieving your  Goal of financial independence, let's look at the Phases of Financial Independence™.

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