You can make real estate investing work for you, with persistence, energy, lots of hustle, the right strategies you can break even in real estate, many may think it is not possible to start real estate without cash, absolutely you need little if not any but in this article, we are going to talk about how to buy a house with no money down and have a stake in the real estate sector.
To make real estate investing without money work for you, there is a need to put different strategies into play, remember your aim while going into real estate investing is to generate profits either through rental income or through market value appreciation.
Let face the reality, investing in real estate without money down is not something easy to come by, you will need some money to make it work but let see some strategies to make real estate investing work without money.
You need to develop the ability to recognize, understand, and even take advantage of other people’s money if you want to invest in real estate with no money.
Investing in real estate by using other’s money is the ticket to the industry and it is the model stepped by most successful people in the real estate investing business that has no money to start with and makes it a profitable venture.
Investing in real estate with no money is the best way to testing the waters for a new investor, but not that if even as you trying to test the water you don’t joke with people`s money you are leveraging on.
Investing in real estate will earn you a passive income for life in as much you continue investing in the sector and this can help you meet desired financial freedom, then let look at how it can be done with almost zero capital.
What Is Real Estate Investing?
Real estate investing is an act of purchasing, ownership, managing, rental, and/or sale of any type of real estate for profit. It offers a unique steady cash flow and strong odds of high capital gains.
One thing that makes real estate to be different from other investment is that is rare to lose all money, and it can generate investor for a very long period.
How To Buy A House With No Money And Invest In the Real Estate Sector
How possible it is to start investing in the real estate sector with no down payment, let see the best 5 ways to do that.
1. Receive a house as a gift and put the part to renting
The very best way to start investing in real estate with no money is through the gifted house, as it is known to all that investments need capital, the same thing happens in real estate investing, finding a way to start is what matters.
A gifted house can be put to LET to start your real estate investment journey, it may look awkward doing that but since you already have all the 100% ownership of the property you can rent part of it out to make passive income, you may even use this to acquire more properties from the money you are making from the gifted rented out the house.
No other option beats this method when you are looking for the best possible way to start real estate investing with no money. If you have property gifted or you are about looking to get one to be gifted you can turn it into money. This is one of the better ways to start your real estate investing journey without zero down payments.
2. Leverage on other people efforts
The second proven way to invest in real estate with no money is through leveraging, when you have no money but have all the knowledge to make a profit in the real estate sector, you can get other people’s money and invest it. Then give them a return on investment after some of the time.
This is another way to start investing in real estate, people give you their money, you use the money for investment because you understand the market more than they do then you give them a return aside from their initial investment deposit.
You make money from their sweat, without investing a dime of your cash, as you do this often, you will have enough money to kick start investing your money.
3. Trade Houses
If you don’t have money to start investing in real estate and you have a property down, you can opt-in for house trading, this is a viable way of acquiring new property without paying a dime.
This is an investment property for sale strategy that doesn’t require money to initiate the investment from the begging. You let go of your old house for a new property.
4. Investing In Real Estate Through Lease Option
Leasing a property allows you to use or own a property with terms from the property owner.
Most times the property owners often charge the buyer a monthly or yearly premium, with higher rental payments.
These additional rental fee charges will be channeled to make the property transferable to the buyer at end of the payment. This method allows the leaser to eventually be the property owner. No down payment at the very start this makes it to be one of the best ways to start real estate investing with no money.
5. Hard Money Lenders
You can opt for hard money lending, If you have no money to invest in real estate, this is a viable funding option that doesn’t require seeking money from the bank.
These funds normally come from groups or private individuals who are interesting in funding real estate projects. It is a loan that doesn’t go through corporate procedures, this makes this loan faster to secure than that of the bank.
Often time, this loan interest rate is always high because lenders are taking greater risks and the terms are normally 12 months or less.
Hard money loans require the borrower to cover closing costs, application fees, appraisal fees, and any other costs associated with the purchase of a property.
This strategy could help you buy a house with no money in your pocket since you are looking into borrowing money but take caution as you may be paying a higher interest fee later.