OK, let’s be clear on one thing: investing in real estate with no money is not easy.
But you probably knew that already, which is why you have spent a good amount of time researching the topic hoping to find a quick solution. To answer ‘How to invest in real estate with no money?’ is easier said than done because starting out in real estate investing is quite a challenge, but it is rewarding nevertheless. The internet has an enormous amount of information that can help you acquire the right knowledge to start your real estate investment business. One sure thing to keep in mind: you will require a little amount of capital, aka money to get started with, because – let’s face it – there is no such thing as a free lunch.
Related: Are There Easy Ways to Make Money in Real Estate?
How to Invest in Real Estate With No Money
1. Save Money to Buy an Investment Property
One way to start investing with little capital is to begin saving money until you can afford to buy an investment property and/or become eligible to qualify for a mortgage loan. This is definitely not an overnight plan, but it is an option if you cannot start investing right away. And don’t worry, it will take less time than you think to save up and get on the real estate investing wagon. Remember, success and financial freedom don’t happen overnight, so be patient and commit to saving. If you ask any real estate investor or real estate agent about ‘How to invest in real estate with no money?’, good chance you will get a long response with no quick fix.
Long story short, keep your day job and try to save as much as you can. And to speed up the process, consider taking on a part-time job if you can fit it in your schedule. But do not put too much pressure on yourself, you can start out by saving a small amount of money for 6 months and gradually increase the amount as you see fit. Once you have accumulated sufficient initial capital, you can take it from there and consult a lender to get you started in real estate investing. To learn the loopholes on how to invest in real estate with no money requires lots of patience. So, take our advice and do not rush into real estate investing just yet, save first, then buy your first investment property to kick start your business.
2. Consider a Short Term Rental Strategy
If you are looking to make quick money and dip your toes into real estate, consider renting out your home or a part of your home on Airbnb. This is a quick solution to make money in the rental market and will also give you a clear idea of what your job as a landlord will entail. It might be good practice before you buy your first rental property, as becoming a landlord is not a passive job and there is a lot that goes into it. So, make sure you are fully prepared before you take on such a role full on. If you want to know how to invest in real estate with no money, opt for a short-term rental strategy, aka Airbnb, to get started.
3. Wholesaling
You definitely came across this term in the past and for a good reason; wholesaling is an ideal strategy to invest in real estate with little to no capital. The basic principle behind real estate wholesaling is similar to fix-and-flip but at a much lower risk. With flipping, you incur the cost of repair and renovation, while wholesaling is passing off the baton to a buyer in a much shorter duration of time. How it works is pretty simple (in words at least): a real estate wholesaler contracts with a property seller and is responsible for finding a buyer for the home within a short period of time. The difference between the contracted price with the seller and the amount paid by the buyer is the wholesaler’s profit. To learn how to invest in real estate with no money, you must acquire lots of valuable knowledge and expertise to stand out and make money for the long haul.
How to invest in real estate with no money via wholesaling?
If the house is under a wholesaler contract for $80,000 (with the seller), and the wholesaler finds a buyer ready to purchase the home at $100,000, the wholesaler has made a profit of $20,000 off the bat without ever owning the property.
Again, real estate wholesaling is easier said than done. If you are interested in knowing more about real estate wholesaling, check out Mashvisor’s blog and/or read the related article below.
Related: Is Real Estate Wholesaling a Good Idea for Beginner Investors?
4. Find a Partner to Invest in Rental Properties
If money is a little tight, find a real estate investment partner with lots of money and establish a partnership to invest in rental properties. But, the trick is that you must offer something in exchange of the loan; again, there is no such thing as a free lunch. Finding an investment partner should not be taken lightly – do your research, ask for referrals, keep things legal to protect yourself, and discuss an exit strategy. When you are willing to work and dedicate your time and energy to real estate investing, you are bound to find a partner who will put his/her money but do little work in return. Our ‘how to invest in real estate with no money’ guide is all about using your creativity to materialize financial success in real estate investing.
5. Borrow Money from a Family Member or a Friend
If you are out of options on how to invest in real estate with no money, borrowing from someone you know and trust could be your last resort but one that is more risky. Make sure you choose this person wisely and be prepared to write up an official promissory note with a payment due date and a specific interest rate. Getting a close friend or a family member involved is a bit tricky because it might harm your relationship if you are unable to repay the loan down the line. Be careful if you go down this path!
Related: Why Real Estate Investing Is One of the Best Ways to Make Money
Conclusion
‘How to invest in real estate with no money’ is a popular topic across the web and many look for easy ways to become rich through real estate investments. Unfortunately, the reality of real estate is far from rosy, but with the right persistence and determination, you can get on the right path in no time. We have given you the best real estate strategies to get started with little or no capital. The secret recipe is to acquire the right knowledge to invest in a smart way and materialize financial returns in due time. There is no quick fix, and you have to pay your dues if you want to gain financial freedom in the world of real estate investing.
Head over to Mashvisor for more real estate insight!
