Coming into the first day of class for anything can be intimidating. Becoming a landlord is one career path that takes some blood, sweat, and tears.
One of the most important concepts you will learn in Landlordology 101 is how to become a landlord with no money.
Oh yes, it’s possible. Here, we share with you how you can make it in the real estate business even when you have none of your own cash to spare. Prepare to take notes, there’s a lot to learn.
Lesson One-How to Become a Landlord with No Money
So you want to learn how to become a landlord with no money? Landlordology 101 says to be a landlord, you need to buy an investment property. That will be pretty hard if you have absolutely no cash in your pockets.
Well, who said the cash in your pocket has to be yours and not, let’s say, from an investment property lender? You know what’s coming. Here is how to become a landlord with no money!
Seller Financing- A Solution to How to Become a Landlord with No Money
Seller financing is always an option when you want to know how to become a landlord with no money. Try to present an offer on a rental property in which the transaction takes the seller financing route. If you manage to get the seller to finance the investment property, you should exchange different concessions. For example, you could offer larger monthly investment mortgage payments for a fixed amount of time. This allows the seller to recoup the downpayment they put forward.
Once house appreciation allows you to build equity on real property, you are able to refinance it in the usual matter and buy the seller out! One of the most important terms of the deal you create should enable you to rent the property out, and still generate a positive cash flow rental property in the interim.
The Answer to How to Become a Landlord with No Money-Lease to Own
As you’re trying to figure out how to become a landlord with no money, you are in luck when you have the option to lease to own. With this method of financing an investment property, you are able to work out a deal. This deal with the seller consists of leasing an investment property at a certain rate, for a specific period of time, with the option of owning an investment property at the end.
This allows you as a landlord to have a part of the monthly lease payments credited towards buying an investment property at a certain purchase price. Another alternative could be to work out a deal where those monthly lease payments would instead be credited to a future down payment. As soon as you hit the special number, you can then apply for investment property loans, with your lease equity playing the part of your down payment.
The trick here is to settle upon a purchase price from the start, getting permission to sublet, and lease the payment. This gives you a good amount of space to generate positive cash flow.
Real Estate Rule on How to Become a Landlord with No Money- Take on an Assumable Mortgage
This method of financing an investment property is a unique one. When assuming a mortgage, an arrangement is made between you and the current owner of the real estate investment property. Their outstanding mortgage and its terms would be transferred to you, the buyer, from the owner of the investment property at the time of purchase. By assuming that owner’s remaining debt, you will be able to avoid having to obtain your own investment mortgage!
Once you make sure the seller’s investment mortgage permits this type of transaction, this is one of the easiest ways to answer the question “how to become a landlord with no money!” There is one main aspect to keep in mind however if you do decide on this approach of how to become a landlord with no money.
Your credit score needs to be pretty up there in rating. Any financial institution will look at you as if you were coming to them for a home loan of your own, so prepare yourself for the scrutiny. The only difference here is that the seller will serve as a co-signer alongside you. If you default, the investment property and investment mortgage will both revert to the seller.
Get Creative When Learning How to Become a Landlord with No Money- Improvise!
Let’s say you own your own home already but want to get into real estate investing. The problem here is you don’t have the liquid cash for a rental property down payment, let alone to buy an investment property as a whole. How to become a landlord with no money 101 teaches you that this is when you improvise. Rent out one of the rooms in your home!
Airbnb is a growing trend that allows you to rent out a room on Airbnb. This is a great way to raise some of the funds you need. One Benjamin Franklin after another Benjamin Franklin accrues to an eventual down payment for your investment property!
Related: When Is Renting Out a Room on Airbnb the Ultimate Real Estate Investment Strategy?
Another way to improvise in the real estate business is using real estate predictive analytics. You are putting all this effort into saving up for a downpayment on an investment property. You want to assure that as you save and invest in this rental property, you will end up with a positively geared property! Mashvisor can help you decide whether or not you have got a money making property in your hands.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
Our property valuation gives you an idea of real estate performance metrics like cash on cash return, cap rates, both traditional and Airbnb rental income, and more! Those real estate analytics can help you gain the confidence you need to know that downpayment you’re saving for isn’t going to waste. Play it smart with Mashvisor’s real estate property analytics, and all the other real estate investing goodies we can give you.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Related: Buying an Investment Property Is Easy with Mashvisor!
How to Become a Landlord with No Money Lesson-Checked!
That was a pretty successful class for us, don’t you think? We went over all the great ways you can make it in real estate investing with no money at all. Learning how to become a landlord with no money in those pockets of yours is simple. These are only some of the ways you can make it work, even when you don’t have the liquid funds to do so. You are more than capable to go out and use what you learned on how to become a landlord with no money.
Get yourself a dose of Mashvisor to gain the confidence you need to buy that investment property. Even your income generating property needs you to believe in it. Work towards a positive cash flowing investment property with all you learned and Mashvisor! So, how will you become a landlord with no money?
Related: 8 Steps to Becoming a Landlord