Purchasing investment property with little/no money down?

I've been watching flip this house on A&E and following the story of one of the investment teams. In an interview online -- one of the founders said that he and his family were on welfare and food stamps and he was able to get a loan for his first investment property. I'm not that dire - but was wondering how can that be?

Hello,
I am a broker and what that guy did & what you can do is very easy. He simply took out a 100% loan with no prepayment penalty, had a hard equity lender give him another loan for the repairs. finished it and sold it and paid everyone back. Even though a person can be on welfare or food stamps doesn't mean that they do not have bad credit, but if they do then they can get a loan for about 80-85 percent and talk the seller into giving them a seller held second(between the buyer and the seller). but he bought the properties below appraised value. I hope that i have been helpful. Have a blessed day.

he didnt say where he got the loan...loan shark mmaybe

Depends on the value of the property and what it sold for. If you buy something at 80% of value, it is easy to get a 100% or more loan.
The value of the property, not the credit worthiness of the buyer is paramount!

You, too, can get 100% financing for an investment property! Here's how: First, build a time-travel machine that will get you back about five years. Second, go into any subprime lending shop. Third, breathe. They'll give you the loan. (Breathing is optional, as some lenders didn't even require this.)

Seriously, those days are gone. That lending model - lending lots of money to people with little or no income, has been the end to New Century, Fieldstone, Ameriquest, etc.

It depends on what state and county you are in. They offer many different loan types. "They" being private lenders, National Banks, or the Government. You just have to do some research.

In my state they are offering, until the money runs out... interest free and payment free down payments or home improvement loans - well they're more like grants. Certain stipulations apply: you have to make under a certain amount, you have to be a citizen, you have to have had a job for 3 years, etc. It's basically like a revitilization for the state.

Anyway, programs do exist you just have to look around.

ok it is possible but a very involved process you have to be willing to search for the right criteria on such a property and you need a motivated seller and would need to get such a good deal on the property say like 40% or below market value so that any bank would loan anyone as the bank would make money if the loan went into default. and was forclosed so it is not imposable to learn more you would need to buy the book. im not going to type it all out for you. lol

You CAN get 100% financing from a Hard Money lender for investment property INCLUDING the money for repairs. You have to buy at 75% LTV or lower and have 620 credit scores or higher. Terms are high (my most recent one is 15% and 5 points) but you'll only be holding the property for a few months and the availability of cash is key. I've used Lending One. They are in several states but they are by no means the only ones out there.
HTH