Financing TipsBuying Investment Properties With No Money by Diala Taneeb September 24, 2016January 28, 2019 by Diala Taneeb September 24, 2016January 28, 2019You’ve heard, “in order to make money, you have to spend money.” But, how true is that? In fact, there are ways to make money in real estate with no money or little money being spent. The catch is that if your money is not being used, then your time or energy will be. Be prepared to work a little harder and more creatively.How To Invest in Real Estate With No MoneyThe first thing to do before investing is to evaluate your financial situation. Why are you going to invest in real estate with no money? Should you do so? Have you explored all options? If investing with no money is suits you, these are great strategies for investing without spending any money at all.1. Trading Trading possessions is one way for buying investment properties with money. This could be another property or another asset such as a car. You could also try purchasing a property in exchange for work. For example, a contractor can offer labor to a real estate developer in exchange for a down payment. For investments, it makes more sense to exchange an asset other than a property to obtain a new investment property. Be sure to write up a legal document including the value of both assets.2. Wholesaling Wholesaling does not require money but does require networking. A wholesaler finds a seller whose property has not yet gone on the market,and then finds a buyer, and takes a cut of the selling price. Wholesaling is great for those who don’t have assets or money, but it will require building relationships and commitment.Related: 9 Ways To Invest If You’re Not Rich (Yet) How To Invest In Real Estate With Little MoneyThe more money you have to invest, the easier. These options include spending money over a longer period of time.1. Lease With Option of Buying This strategy is also referred to as “rent to own” or “lease-purchase.” This means you would make payments just like with an ordinary lease and payments go toward buying investment properties. The agreement includes a time frame in which the tenant has to buy the property for a specific price. During the time period, the owner or investor cannot sell the property to anyone else. If going with this strategy, make sure to agree on a final price in a legal document.2. Flexible Sellers Some sellers, turnkey providers, who have move-in ready properties will sell to investors for as little as 5% down. This is an effective way to invest in real estate with little money down and avoid putting more money for renovations. These sellers have high interest rates so it’s important to calculate cash flow – including vacancies – ahead of time.3. FHA Loan The FHA mortgage requires a down payment of only 3.5% and must be owner-occupied. If the property is flip, you can live it in it first, fix it up, and sell it. The 203K loan is combined with the FHA mortgage and lends renovation costs.. Another option is buying a multi-family property and living in one unit while renting out the other unit.Related: Top 5 Alternative Ways to Find an Investment Property How To Invest in Real Estate Without Your Own MoneyIf you can’t get approved from a bank, there are alternative ways to get loans.1. Private Money Loan Borrow from a private investor, family member, or friend. They determine the interest rates but the rates can vary depending on the relationship with the lender and on the terms of agreement.2. Hard Money Loan This is obtaining a loan from a lender, usually a private investor or company. When buying investment properties, the lender cares about the value of the property and not your credit score. The lender makes sure the value of the property is worth more than the loan, in case the loan is not paid back .3. Partnerships In exchange for one investor’s money, the other investor takes care of the actual investing and does the work. When selecting a partner, find someone that can offer their investing experience and strategies. Make sure you’re also bringing skills to the table.Related: Vital Tips to Help New Real Estate Investors Acquire Financing If you want to buy real estate with with no money or little money, these strategies can be lucrative if done correctly. But also try to keep tracking of your spending. Are there cutbacks you can make that can be put toward investing instead?Don’t forget, before deciding to invest in real estate with no money or little money, search how to buy investment properties using predictive analytics and see what are the expected expenses, cash on cash return, etc. You might find investments are more feasible than you think.Are you new to real estate investing? Have you invested in real estate with little or no money? What were your strategies? Leave us a comment and we’ll chat! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL FHA LoanHard Money LendersNo Money DownPartnershipsPrivate Money LendersRent to Own 0FacebookTwitterGoogle +PinterestLinkedin Diala TaneebDiala is among the most experienced content marketers at Mashvisor. She loves writing about everything real estate including investment strategies, how to buy a profitable rental property, and the best locations for investing in real estate. Previous Post Becoming a Successful Real Estate Investor Next Post Investment Property Calculator For Analyzing Real Estate Investments Related Posts The Donald Trump Way of Making Money in Real Estate How to Get a Mortgage for Investment Property: A Beginner’s Guide How to Become a Real Estate Investor: The Best Way Real Estate Investment Advice from Expert Investors Investment Property Loans: Friends or Foes? 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