Buying Investment Property How to Become a Property Investor with No Cash in Your Pocket by Ahmad Shukri August 24, 2018August 23, 2018 by Ahmad Shukri August 24, 2018August 23, 2018 Knowing how to become a property investor is not the easiest thing to learn as a beginner. More often than not, ambitious individuals want to dive into the real estate investment pool but feel trapped by the lack of capital or a poor credit situation. We all know how hard it is to fix your credit situation. Once your credit score is low, it takes lots of effort and careful planning to get it back up. So, there’s no need to feel unempowered anymore. You can start your real estate investing career without a big bundle of cash in your wallet. How to become a property investor without big cash payments Contact wholesalers These days, you can find real estate wholesalers on many online forums and even craigslist. What this can do for you is create a path to walk on into the real estate business. For most successful real estate investors, becoming successful requires hustle and hunger. Keep in mind that real estate wholesaling can create success for you when persistent. This would work if you join hands with the wholesaler by providing him/her with a buyer. Typically, you share the profits made from the deal and each walk on their own. This can be a great way to raise capital for your real estate business. Read more about real estate wholesaling here: Should You Get into Wholesaling Real Estate? Real estate partnerships Creating a partnership to fund your first real estate investment property is the smartest thing you could do if you want to start in real estate. So, don’t hesitate and start looking for a partner. Of course, you might think that it’s difficult to find the capital to take on an investment property. However, if you look in the right places and spread the word, you are likely to find the right investment opportunity soon. Let’s take an example of one real estate investor who dived into the real estate investment world by providing the knowledge and the strategic resources and his partner brought the capital. Therefore, they both benefitted from this real estate partnership. You can go online and search for investment groups and forums and spread the word about your real estate business. Take on a real estate mentor This may not be your go-to solution on how to become a property investor with no money, but for those who did it, it has proven to be a lucrative investment strategy that set them on the right path. To begin with, a real estate investment mentor is an expert investor in your local housing market. This individual will act as a mentor for you to build your own real estate investment portfolio through creating and maintaining an adequate real estate investment network. A real estate mentor is not a difficult thing to attain. You can use a real estate partnership for your first few investment properties or even offer him/her a percentage on your returns. You’d be surprised by how many expert real estate investors will agree to aid you if you cut them a share. For information on how to find your own real estate mentor, read this blog post: How to Find the Best Real Estate Investment Mentor. Take on an FHA loan Managing leverage and loans should be an important lesson for anyone looking to learn how to become a property investor. While this may not be the real estate financing method that anyone with a not-so-good credit score would go to, it can be a good financing method to fund your first real estate property. Of course, you must find a good deal on a property and do your due diligence to end up with substantial returns. Moreover, mortgaging a property isn’t a bad thing for investment properties. The only thing is that you’re committing for a long-term period instead of your typical 2-3 year investment loan. When buying an investment property with a conventional mortgage, you must calculate the risks of your investment through an investment property calculator. In fact, you should use it even if you’re paying in cash. This helps you in defining your expectations of cash flow, maintenance costs and many other variables. Use your property equity If you own your residence, you’re in luck, my friend! You most likely have equity in your residence that you can release as a financing method. This must have crossed your path if you’re researching how to become a property investor. Using a home equity line of credit is very common for homeowners who need equity release out of their properties. It’s a form of a loan that’s backed by your homeownership. Learn more about home equity lines of credit through this blog post: Release Equity to Buy Another House – Basic Guide. How to become a property investor while ensuring low-risk investments The best way to do that is running an investment property analysis on any property you’re interested in. This cuts through the unnecessary noise and sets you right on track. If you’re wondering how an investment property analysis can help you in becoming a real estate investor, the answer is simple. It’s about analyzing the potential of the property as an investment and how you can control the variables that arise to have the best possible outcomes. An investment property analysis can give you the expected cash flow from a certain property, capitalization rate, and cash on cash return. Additionally, you can learn all the costs that come alongside any specific investment properties, including taxes, maintenance, and even HOA fees. Give Mashvisor’s investment property analysis a shot by clicking here and making use of the 14-day free trial. Final words We understand that there is no magic book to use on how to become a property investor, but you can do it! It takes a bunch of learning and exercising that knowledge to become the type of investor you desire to be. Of course, it’s going to be difficult to break into any profession, whether real estate or something else. Just keep in mind that the beginning is the most difficult part, and once you get that out of the way, you can work your way up until you become the professional real estate investor you always wanted to be. If you have any more insights on how to become a property investor with little or no money, please feel free to share them with us in the comments section. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL 0 FacebookTwitterGoogle +PinterestLinkedin Ahmad Shukri Ahmad is Content Writer at Mashvisor with a degree in marketing. He enjoys writing about everything related to real estate and especially the top markets for investment properties. Previous Post How to Maximize the Return on Investment for Your Rental Property Next Post This Is How to Go About Buying an Investment Property Related Posts The 21st Century Must-Have Real Estate Investment Tools How to Find REO Properties in 2021 What to Consider Before Investing in Real Estate Out of State Should I Buy a HUD Home? The Answers That You’re Looking for! Why 2020 Is the Best Time to Buy a House for Investment Should Real Estate Investors Go for Micro Apartments? How to Find High Cash on Cash Return Philadelphia Real Estate for Sale 4 Things to Beware of Before Renting Out a Second Home FAQs: How Does Rent to Own Work? 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