Reporter Matthew Taylor finds out their secret By Matthew Taylor ERROR RG P4 27.3.2001 Friday's story about no money down housing incorrectly quoted Dale Butler as saying the Bank of Bermuda had moved from 80 percent to 95 percent mortgages for first time buyers. In fact it is the Bank of Butterfield which is offering that deal.

More than 40 people have bought a home with no money down claim housing activists who spread the word last autumn.

Progressive Labour Party MP Dale Butler and property developer Rodney Smith spoke to packed meetings around the Island last autumn.

Mr. Butler said: "We were trying to highlight how people's perceptions of their reality can get in the way.

"They need to look on obstructions as a challenge and try to find people to assist them.'' A biblical quote extolling the virtues of spotting an opportunity sums up the philosophy of Mr. Butler and Mr. Smith.

The latter said: "Into your hands will be given the things that you desire.'' Free fish cakes and gingerbread were gimmicks to entice skeptics to attend while some who went found even greater rewards.

Audience members were invited to come up to the stage -- the first four that dared were each given an envelope containing $100.

Mr. Smith explains it was to teach people there were chances going begging around them.

He said: "We fed people, we gave them money. We must have given out at least $2,000 to prove to people that this works.

"We tried to remove the fear. Some of them still don't believe.

Mr. Butler quipped: "If we had charged, people would have probably taken the information more readily.

"I had 50-60 people at my home. We did group sessions. People still want to know about it. I had four calls yesterday.'' They even did back-to-back sessions at Warwick's rubber tree while meetings at Somerset Cricket Club were full to overflowing with people having to strain to hear from the porch.

"Those who believed are now home owners or are trying to get courage up and move toward home ownership.

But "no money down'' doesn't mean there's no effort involved.

Mr. Butler said he spotted his first house after getting up at 5.30 in the morning to scan adverts in The Royal Gazette and then he queued outside the bank to be first in the door to get the funds.

He said: "Do your own search. Get newspapers and magazines and meet the people yourself -- become your own agent. Don't sit there waiting for it to come to you.

Mr. Smith said: "The greatest hurdle is the deposit. What we find is that more people are able to make the monthly payments than pay the deposit.'' The Bank of Bermuda has moved from 80 percent for a first mortgage to 95 percent, said Mr. Butler.

What the pair teaches is how to get the last chunk of cash to clinch the deal.

One way is to secure a second mortgage which gives them their deposit.

Investment institutions or even law firms are another source of funds to borrow the deposit money, said Mr. Butler.

And he said owners wanting a quick sale could be persuaded to actually lend the buyer the deposit money, with the buyer agreeing to pay back that money within a few years.

"And under the table some banks are prepared to do 100 percent financing.'' The ideal property would have apartments to rent out to help them new buyers make their monthly payment says the pair.

Auctions are another way to pick up a cheap deal says Mr. Smith who urges house hunters to keep an eye out for newspaper adverts announcing them.

Would-be buyers can then have the funds in place before turning up hoping for a deal.

Though Mr. Smith cautions some keen buyers will work in tandem with friends to outbid rivals.

"But you can get rather good deals if there aren't too many people competing.

"Some of the best deals never come on the open market -- it's by word of mouth. They are snapped up even before they are made public.'' Mr. Butler said he was proud of the 40 owners he had helped get their own place and he said still others were on the way as they shunned buying flashy cars and concentrated on saving for a home while living with their parents.

He said real estate firms were also taking on the idea with some holding a seminar on how to buy a house with `some money down'.

But for the moment the `no money down' duo intend to take a back seat.

Mr. Butler said: "We charged nothing. It was a tremendous sacrifice to be away from our families.

"There's still a tremendous amount of interest in it. But we can't do any more. We did more than enough.'' Instead prospective buyers are asked to read the recommended books.

But Mr. Butler said paid group workshops run by companies was the only way the pair would be enticed into carrying on with the talks.

RECOMMENDED READING `Nothing down for the 1990s' by Robert Ge Allen.

`As a man thinketh' by James Allen.

`Creating wealth' by Robert Allen.

`Bankers Secret' by Marc Eissenson.

`Richest Man in Babylon' by George Classon.