Tips on How to Get Into Real Estate with No Money
Getting into real estate can be a tough gig, no doubt, and will a certain degree of patience, time, and commitment. Additionally, it should be no mystery that of course getting into real estate with funding is needed. However, this doesn’t mean that those without money can’t invest too – or profit off of real estate deals!
In fact, there are at least four different ways to get into Real Estate TODAY even if you don’t have any money – so READ ON to find out how!
1. Firstly, we want to recommend the route of asking a family or close friend to borrow money not just because they’re closest to you, but specifically because this will most likely be the lowest – if any – interest rate involved plan. While this is not always a guaranteed solution for everyone, it is an option for many, so it’s worth considering ‘right off the bat’ before diving head-first into the real estate industry on your own.
2. The next recommendation is attempting to barter for funding, may it be a property as collateral for a down-payment, or an actual full trade of your property for the house you’re interested in. In some cases, a car might be (sold) used as a way to guarantee the homeowner you’re committed to making reasonable payments in the future – typically under the assumption you currently have some form of income.
3. This recommendation is not necessarily as risky, as it is costly. In essence, mind you that this method will be most ideal for “short term loans.” This approach will involve going with a “hard money lender,” which although costly in the interest rate, will still allow you to obtain money to fund your real estate endeavors. Also, keep in mind that with this type of lender “points” will be assessed over time as you both agree on numbers, adding to your costs, so just make an arrangement – get it in writing – that makes the most sense for you.
4. Our last recommendation is both practical and profitable. That is, consider reaching out to someone you’re on good terms with that might share your aspirations for getting into the real estate business. You both can split the profits, and work out an arrangement – perhaps in his or her favor – if they will be responsible for putting the money up before you.
Remember, this can be a coworker too, just try to avoid any sketchy characters or someone you haven’t known for a while and focus on those who you can trust. Try to network locally, and consider attending some local real estate conventions to maximize your efforts!
So you see, getting into real estate without money doesn’t have to equate to an “impossible “mission.” Quite the contrary, with the right level of commitment, motivation, and sincerity you should be on your way to getting into the real estate business in no time!