General term referring to real estate acquisition strategies based on seller-provided financing and/or existing loan assumption and minimal use of cash down payments. It is a risky method of trying to achieve maximum profits from real estate investments.


Example: Allen purchased three houses using a no money down strategy. In one transaction, Allen assumed the existing mortgage of $55,000, gave the seller a note for an additional $30,000 and transferred ownership of an automobile worth $5,000 to finance the $90,000
house with no cash down payment.

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Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.

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