Real estate investing offers lucrative financial benefits; however, not everyone has the start-up capital to start a self-funded real estate investing business. Even experienced real estate investors sometimes prefer to find real estate deals that don’t require upfront money. So how do you break into real estate investing with no money?
As a woman real estate investor, it’s absolutely possible to find real estate investing opportunities with no money. However, as with any investment opportunity, you have to understand the basic principles of how the industry works and your role in it. Work with an experienced and proven real estate investing coach to start out on the right foot.
A solid real estate investing coach will offer a range of information to back up their knowledge, including articles like this one, eBooks, courses and webinars. Set yourself up for success from the start!
The Three Keys to Real Estate Investing with No Money
If you want to join the real estate investing industry without investing your own money, there’s three keys to understand. First, you must have a strategy for your real estate investing business. This includes treating it like a business. Not only do you need a business plan, but also a specific strategy for the types of deals you will pursue.
Second, you need a professional network. Connections are key to finding funding, partnerships and the right people to help you close a deal. Third, information is power. In order to be successful in real estate investing, you must learn the foundations of the business.
With a foundation based on a solid strategy, network and information, you’ll be ready to launch your real estate investing business weather or not you plan to use your own money.
Ways to Invest in Real Estate with No Money
Take the time to learn about the real estate investing business. There’s so much more to it than simply buying a rental property. In fact, many different options are available to start investing. As your business grows, so will your knowledge of the industry. A smart real estate investor will diversify their portfolio. Even if you have money to invest, it’s still a good idea to understand the various methods for real estate investing.
Wholesaling is an easy way to break into the real estate investing business with no money. With wholesale real estate, the investor enters into a real estate contract and then assigns that contract to a different buyer. Wholesale real estate investing differs from other real estate investments primarily because the wholesaler doesn’t take ownership of the property.
The key to wholesale real estate is to quickly find a buyer who will pay more for the property than the original contract amount. The difference in the contract amount with the seller and the buyer is the investor’s profit. The good thing about wholesale real estate is the quick money earned can then be used to invest in other real estate deals.
Like with wholesaling, co-wholesaling is a quick way to make money through real estate investing with no money and without taking ownership of the property. However, with co-wholesaling the investor forms a joint venture with another wholesaler to maximum reach. The benefits of co-wholesaling are a faster process, larger buyer base and larger inventory of properties. Working together benefits each party. Usually in a co-wholesaling venture, one party brings the buyer and the other brings the property. This helps speed the process in order to minimize risks for either party.
Co-Wholesaling is also a great way to break into the industry of real estate investing with no money. When partnering with a more experienced investor, you have the benefit of their industry network and knowledge. Look for trusted partners that can lead to lasting relationships.
Subject To and Lease To Buy Option
Both subject to and lease to buy options are similar in that you aren’t taking on a mortgage in your name. Instead, the mortgage remains in the name of the original owner, but a contract is created to give the investor rights to the property.
With a subject to deal, the title is transferred to the investor and the investor is responsible making the mortgage payment. However, the mortgage is not transferred to the name of the investor. The investor can sell the property, pay off the mortgage amount and retain any difference as profit.
For lease to buy, the investor leases the property. The title and mortgage remain in the name of the owner. However, a contract is signed to allocate part of the lease payment toward the purchase amount of the property. This lease to own option allows investors to pay toward ownership of a property over a longer term without having to pursue financing or put cash down.
A solid network in real estate investing opens the door to private funding relationships. With private funding, the real estate investor locates cash investors for both short-term and long-term investment opportunities. With private funding, the expectation is the funder will receive a return on investment or a partnership agreement is made.
In a partnership agreement, usually one party invests the cash while the other does the leg work. This is a great option for if you want to enter real estate investing with no money.
Private funding is available for real estate investors. With the right industry knowledge, you will learn how to seek out and find private funding for your real estate deals. Overtime, you can build a solid network that will make finding private funding easier.
Be Smart with a Strategy, Network and Information
You don’t have to be wealthy to gain wealth through real estate investing. In fact, many options are available to do real estate investing with no money. Whether you find a wholesaling opportunity or private funding, the right strategy, a solid network and industry information provide the foundation you need to succeed as a real estate investing woman.