How to Invest in Real Estate with No Money Down

If you are at the begging of your journey into the real estate investing, one thing is sure – you will need cash. Or at least this is what most people think. In reality you can do a lot even with your limited assets. Real estate is an attractive field and became a popular investment vehicle. However, buying, owning and selling a building is far more complicated than trading with stocks and bonds. If you made your mind and want to invest in real estate with minimal funds you need to be creative.

Work First, Invest Later

The easiest way to gain both money and experience is by first working in the field, especially if you are just getting started. Instead of jumping straight into the investment business, you can first increase your income and knowledge and build valuable connections. Think of it as cleaning and polishing your career path. Real estate offers a variety of job options such as real estate agent, project manager, intern, appraiser and many more. Even if you are part of the cleaning service, you can learn something about real investment. The benefits of this approach are pretty obvious. The only thing you need to invest is your time and efforts.

Try Wholesaling

There is no surprise that wholesaling is among the preferred options for many people who want to work in the real estate investment. First, no or little money are required. Second, it depends entirely on your skills. As a wholesaler you will be paid to find great deals and sign a contract with the seller for a specific price. Be sure that your portfolio is at top shape by cleaning out the bad or obsolete deals. Then you will connect with potential buyers and offer them the contract, while charging them a certain fee.

Get a Partner

Partnership is a common practice in real estate. You might lack the money, but you probably have the vision and talent that somebody else might need. Before go looking for a partner, consider what you can offer. What is your leverage? Maybe you have an extensive list with contacts? Or you are in the business for a while and have certain reputation? Are you good at deal – making? Think how you can become the missing piece of someone else’s plan.

Lease – Option Sandwich

As you can imagine, the method is consisted of two segments – a lease and an option. The first is a classic rental agreement. On the other hand, the option is a legal document that gives you the right to buy a property for a pre – set price within a determined period. The investor finds a property form a seller and signs the lease option for a given time frame. Then the investor finds a buyer and offers the property for a shorter term and a higher price. Basically the different legal agreements are put together in one transaction and the investor serves as a middle man.

Acquire Hard Money

This remains the most well – known way in the real estate investing sector. Instead of going to the bank for a loan, you turn to private individuals or corporations that have the sufficient wealth. Although, these are quick and easy money that will help you nail that killer deal. For more house cleaning ideas:

Leave a Comment