One of the Myth’s of real estate is that you have to have money. This is flat out not true, you can absolutely do deals with no money and credit. There are a few precautions I want to mention, especially for beginners before explaining how to do deals with no money and no credit.
Having money and credit can certainly make it easier to do deals. It is crucial however to make sure the deal still meets your criteria. At no point in time should you bend your criteria and make the deal work by putting in your own money. For instance, if you are considering putting in 10% of your own money to make it meet your 70% LTV criteria, you should lower your offer or pass on the deal. The risk has to be warranted, in fact, all deals should be good enough where you do not have to use any of your own money. Using your own money should just sweatin the deal and improve the return without unneeded risks.
Here are some ways you can do real estate deals with No Money and No Credit
- Use Private Money – Cash is king and having private money backing can allow you to do deals without any of your own money
- Partner – If you have a strong business plan with solid exit strategies and a successful track record there is a ton of money out there to fund 100% of your deals. Make it a win-win for your partners and make it happen.
- Find deals with incredible numbers – If you are an expert at finding incredible deals, doing and exiting the deals then people will fight over funding your deals.
- Wholesale, Bird Dog – There is no risk, money or credit needed in getting a deal under contract or locating deals for investors.
- Subject To, Seller Financing, Lease Options – Taking title to a property subject to the seller’s existing mortgage, getting the seller to carry financing or lease optioning a property are ways to do no money no credit deals
Photo: totalAldo
Article Author:
Ryan MoellerRyan has written 32 articles for us.
Visit Ryan's Website: http://www.realreturnrealestate.com
Ryan is the founder of Real Return Real Estate™ , a company focused on buying property at extreme discounts, selling and renting with cash flow.
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Great line about “bending your criteria to make the deal work”. To be successful you have to be willing to work. Great article.
Thanks Shauwn, I am glad you enjoyed it. Happy holidays!
Ryan Moeller´s last blog ..Cash Flow Duplex
Enjoyed the article. Shauwn said it best when he mentioned “willing to work”. You also have to think outside the box, and need a lot of persistance. With that being said I’d like to quote “All the good things that have happened I made happen, while all the bad things I let happen”.
Great quote Liz! I also love this quote, “Not having a plan is planning to fail!” Happy Holidays!
Ryan Moeller´s last blog ..Cash Flow Duplex
Thanks for the tips. But you know its not as easy as it can be said. I am an optimistic myself but the truth is a person with no money or credit cant get too far. Yeah 1 in million but com on, we are talking about real people its not a move that that one person is going to be you.
I hope it didn’t come out sounding as i am bashing you or something. Dont get me wrong, its a great article and these are some solid tips. But i dont think its doable. Thank you.
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I think ’satrap’ is, unfortunately, bound by his own limiting beliefs. All the ways you mentioned to get into real estate with little or no money out of pocket are doable. The opportuities are there you just have to (1) believe it, (2) go out and find it, and (3) make it happen! It won’t fall in your lap, but it’s happening everyday.
Dominique, I live in San Diego and competition is ridiculous. That is the case in many of the larger overhyped markets that are expensive. LTVs are not as good and cash flow is sometimes non-existant. Some of the ways I recommend to do deals with no money and no credit are very difficult in these markets. That is why I did a ton of research and target other areas where I can mitigate risk by finding tremendous cash flow and tremendous LTVs. Deals in those areas can be done with no money and no credit and I am proof as I am doing it right now.
So I totally agree with you. Believe, go find it and make it happen! If it is not working in your neighborhood, target a new area. Thanks for the great comment!
Ryan Moeller´s last blog ..Cash Flow Duplex
Hello I have read the tips about how to make money in real estate with no money out of pocket and no credit I have also seen other matiral on the same subject but I can not wrap my head around what to do I have read the tips but they make no sence to me I am a complete begginer and i want to get into real estate but have literaly no money to use hence why I would like to get into real estate to make money so when I hear you can do it with no money or credit I realy want to try but can you please discribe to me in detail what to do and the easiest thing to make money for a begginer in real estate, what to do, how to do it in more detail so I can understand it I appreciate the five tips but they just dont go into enough detail for me sorry. Please help me understand so I can get started and try to become finacialy stress free. Thank you if possible send answer to my email. thank you.
Michael,
I have some recommendations that I hope help. First, do not overcomplicate things by trying to learn and be comfortable with every strategy, step and task with real estate investing. Focus on becoming a master on one thing. Such as finding deals in your market. Educate yourself and learn until you are comfortable with that one thing until you are an expert. Divide and conquer my friend. I hope this helps.
Ryan Moeller´s last blog ..Cash Flow Duplex