If you want to learn how to start Investing In Real Estate with no money, you’re asking the million-dollar question. In fact, if you do this right, many millions. The truth is that you can absolutely invest in real estate with no money, but you’ll have to get creative. Buying properties with cash is the easiest way to go about it, but not everyone is blessed with a war chest of cash. In fact, most real estate investors are rich because of real estate. It’s not something that they do after they become rich, it’s the path to get there.
The first method that I used to start investing in real estate without any of my own money was to find a partner who did have money. I had the time, the knowledge and the relationships, my partner had the money. There is no shortage of money in this world, but there is a shortage of people with those other three things. It’s all about leveraging what you have to get what you don’t have.
The first thing that I did was get myself educated on how to properly find good real estate deals, and then how to apply various strategies and techniques so that I could turn those deals into money. Then I developed relationships with people who had money and were looking for deals to invest in. Then I found good deals and told those people about it. After seeing that I knew what I was talking about and that I had a good deal under contract, it only took me 6 hours to get my first deal 100% funded with other people’s money. One of the keys was that I was educated, I knew what I was doing. No one would have funded me if I was just guessing that the deal I had was good.
Another option that you have to get started with real estate without any of your own money is to buy properties subject-to the mortgage. This is where you find someone who is having challenges making their monthly payments, and you offer to take over the payments for them. You obviously have to do the math so that you know you’ll be able to make the payments once you get a tenant in there. Sometimes this strategy will require you to have the money to do repairs and/or bring the mortgage current with the bank. If that’s the case, it’s certainly going to be less money than would have been required to buy the property in the first place, and you won’t have the qualify for a mortgage because the mortgage is already in place. If this still requires more money than you personally have access to, you can do a combination of this and having a partner.
Another way to get stated in real estate using none of your own money would be to utilize seller financing. This is where you find a property that the owner owns free and clear, and they are willing to carry back the mortgage for you. The seller now becomes the bank and you won’t have to qualify for a traditional mortgage. Every seller is different for what they will require, but it’s completely possible that they won’t require any money down and won’t do a credit check on you. How this ends up all depends on your negotiation skills and how credible you come off to the seller.
There are many ways to get started in real estate without money, and these are just a few of them. I suggest that you keep first things first and make sure that you educate yourself before attempting to get into any Real Estate Deals. The last thing you want to happen is to get into a deal and make a mess of it. You could lose the money of your partner and create a bad name for yourself. In fact, this can happen even after you’re educated, but once you’re educated the chances are less likely. It’s all about reducing risk and increasing reward.