You’ve seen the headlines. Start a career in real estate investment with NO MONEY! Is it possible… YES!
There are 5 ways to buy houses without cash.
- Seller Financing
- Subject To Financing
- Option Financing
- Credit Financing
- Concurrent Closings
In reality if you understand your market and understand seller negotiation then buying without cash is easy.
But how could an opportunity SO lucrative remain such a niche market? With the right connections and a whole lot of homework, you too could be making MASSVE amounts of money in investing- with no money upfront.
One option for investors without capital is to work out a trade agreement. So put your handyman skills to use and make some real sweat equity. You may be able to work off the down payment in the form of labor. If you don’t have any special skills that would benefit the buyer, do you have any property or assets that could be traded? That old RV you only get to use a few times a year could come in really handy for new retirees. Get creative and see what alternatives you can come up with.
Although lease options can be a risky venture, lease with option to buy is a common way to get started in investing. In a lease to buy agreement, the tenant makes payments on the lease and the investor takes the payment. The investor then pays the mortgage each month.
You may also want to check out the terms of a subject to agreement where the title is transferred from the initial owner to the investor. In this agreement the original mortgage does not have to be paid back. Usually, if the lending company gets their payment each month, no one cares who has the title. Do your research before you get locked into any legal agreement, and as always talk to a professional.
Many investors specialize in wholesaling because you don’t have to put much money into the deal. In a wholesale deal, the investor acts as a middle man between the home owner and the buyer. The investor does not actually purchase the home. You are simply bringing together a buyer and a seller and receiving a fee for making the deal.
Investing is all about making new connections and finding leads. Let’s say you don’t have money, but you’ve got the drive to hand out business cards to everyone you meet. They have money, but no time to do the leg work. I hear a partnership forming.
Partnerships can be a mutually beneficial way to work around a lack of finances. Check out your local Real Estate Investors Association (REIA) and see when they hold meetings. You may also find information at your local Chamber of Commerce or on websites like meetup.com.
Working in real estate might be one of the most overlooked ways to get into investing. When you begin a career in real estate, you receive hands-on training AND get paid for it. You will develop insight into your local market and make great connections with people who have experience in real estate.
Experienced investors love to help newbies get started. Not only will you receive valuable advice and tips to find the money you need to get your career off to a swift start, you will be welcomed into a world of opportunity and support.
In my thirty-plus years of investing I have met and worked with thousands of people. Many, just like me, started with no finances and grew their career. The opportunity is out there. Go and get it!
Last modified: September 5, 2018