It is no longer news that real estates is a highly lucrative, as well as a capital intensive venture. This has made many people who are interested but lack fund to move away from it. However, there are ways to this money game. To be specific, you can invest in real estates with no money. Yeah, you read that right.
Importantly, you need to be extra creative and well detailed if you’d follow this route.
Can You Truly Invest in Real Estates with no money?
This has been one question that has been throbbing in the minds of interested individuals. And the answer is yes. A capital YES!
Yes, you can truly invest in real estates with no money at hand. Fortunately, you can still make enticing dough from the venture.
In this article, I will show you how to make an earning from real estate in 3 ways without having your capital. Keep reading to learn.
3 Ways to Invest in Real Estates with no money
Wholesaling is a great way to generate cash for down payments on rental properties. A lot of “gurus” will advise new investors who are looking to get into real estate with no money to start with wholesaling. While it’s not the worst idea in the world, wholesaling is HARD WORK. It is really a job, and not investing. But you can make good money doing it.
With wholesaling, the idea is that you go out and find motivated sellers – knock on doors, cold call, send direct mail – and put the house under contract for a price lower than another landlord would pay. You then sell that contract to another investor for a higher price and collect the difference as an assignment fee.
Essentially, you are providing a service to landlords. That is, you’d do the hard work of finding the good deals for them so they do not have to. Afterwards, they pay you an agreed fee for finding the property for them.
The hard part about wholesaling is that you have to find better and profitable deals than a normal investor would so that you can make profit.
Find an Equity Partner
If you found a great deal, but do not have the money for a down payment or initial payment, consider forming a mutually-beneficial partnership to buy the house.
Considerably, this works great with flips, as well as rental properties.
If you’ve been attending real estate meetups and are involved in the investor community, you will meet all different kinds of investors.
If you prove you are a hard worker and offer value, there are many real estates investors with more money than time, and would be willing to partner with you on a good deal.
Most importantly, you should negotiate any terms you want, but often this looks like a 50/50 partnership. One partner will bring the cash to buy the property, and the other partner (that’s you, Mr. or Mrs. Real Estate Investor With No Money) brings the deal and manages the rehab work and eventual sale of the property.
Once the property is sold, the profits are split 50% to the money partner, and 50% to the sweat equity partner
Another way to invest in real estates with no money is to get the sellers to finance their properties to you?
If you find a property you want to buy, but have no money to invest, you can see if the seller would be open to selling it to you with seller financing terms.
Perhaps, you could negotiate to put no money down, and make monthly payments on the house on a 10 year amortization schedule.
Usually, the seller does not need all the money up front, and if you can figure out what is really wanted from the sale, then maybe they might be able to assist you by spreading out the payments over a certain period of time.
Now that we’ve established that you can invest in real estates without having capital, the big question is “should you invest in real estates with no money at hand?” Since you can’t afford to drop the cash, be ready to grow healthy relationships with investors, contractors and lenders.