Real estate is a popular way to make money, and here investing is not hard. You only need two key elements; one is money, and another one is to know where to invest. However, not everyone has enough money.
You can use these five methods to invest in real estate without paying money.
1. Borrow Money
You can borrow money for your real estate investment from many places like:
Family and Friends
These are the closest people anyone could have, so you can ask them for the money. You have to make the borrowing more legal so that both parties can be comfortable about it.
The internet has lots of micro money lending sites that provide small loans to investors. Those loans are usually under $35,000, but the borrower has to follow the lender’s rules. Those micro
Home Equity Loan
You can take a loan from the bank as a form of a mortgage by showing your own home. You can find a bank that will give you a loan to pay the down payment of the property that you are buying. It will be a second mortgage where you are using your home as collateral.
2. Invest without Down payment
You can also skip the down payment part and buy a real estate property in these ways:
Lease the Property with a Buying Option
You can make a lease agreement and pay for the real estate property slowly until you have the money to buy the property. The payment of yours that you will pay as a lease payment would be credited toward the buying price.
You can also convince the seller to finance your deal. But, make sure the seller is motivated enough to do so. You can convince him or her to receive higher monthly payments instead of a down payment.
It’s a method where you add someone else with you on the investment and get the real estate that you desire to buy:
Get a Partner
You can add a partner to your real estate business and invest with him. You can use this concept when you have lots of ideas and strategies, but you don’t have enough money to invest. In that situation, get a partner who has enough money to invest.
Invest with a Building Contractor
You know a resell property needs repair and other expenses that can cost you a lot. Besides, some skills are also required if you don’t want to spend on issues like plumbing, electricity, and carpentry.
4. Real Estate Broker
You can team with a real estate broker who has good experience in this field. The broker will be able to find you a property that doesn’t require any down payment.
5. Motivated Sellers
I have already mentioned this part above but in a short way. However, you can find motivated sellers who are desperate to sell their property for reasons like divorce, bankruptcy, death, out-of-town job, leaving the country, etc. These sellers won’t require any down payment and can provide you fund as well for closing the deal as quickly as possible.
The Bottom Line
I hope you now know how you can invest in real estate without money. But, technically, nothing comes free, so you have to do hard work and make others pay for you, and later you have to pay them back.