{"id":95258,"date":"2019-12-06T09:00:12","date_gmt":"2019-12-06T16:00:12","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=95258"},"modified":"2024-02-24T11:52:45","modified_gmt":"2024-02-24T18:52:45","slug":"invest-real-estate-money-experience","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/invest-real-estate-money-experience","title":{"rendered":"6 Ways to Invest in Real Estate with Little Money or Experience"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC6318876801&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n<p>Do you have a \u201cbig but\u201d?<\/p>\n<p>No, I\u2019m not talking about the size or shape of your backside. I\u2019m talking about the big excuses most people have when they think about investing in real estate: no money and no experience.<\/p>\n<p>Well, it\u2019s time to let go of those excuses, get rid of your &#8220;big buts,&#8221; and learn <a href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-invest-in-real-estate-today\" target=\"_blank\">how to invest in real estate<\/a> with little money or experience. Because wouldn\u2019t it be great to walk out to your mailbox and find it stuffed to the brim with checks every month?<\/p>\n<p>Of course, this isn\u2019t going to happen\u2014but not because \u201cmailbox money\u201d isn\u2019t true. It\u2019s not going to happen because people shouldn\u2019t be paying you money to your mailbox. What is this, 1998? It\u2019s called direct deposit. Welcome to the future!<\/p>\n<p>If you want to start receiving passive income, you need to start investing in real estate, plain and simple.<\/p>\n<p>&#8220;But Brandon,&#8221; you say, &#8220;I don\u2019t have any money. And I don\u2019t have any experience!&#8221;<\/p>\n<p>First, stop whining.<\/p>\n<p>Second, with that attitude, you\u2019ll never get there. I call it the \u201cbig but attitude\u201d because the excuses always start with \u201cbut&#8230;\u201d\u2014not because you have a\u2014well, anyway, let\u2019s move on.<\/p>\n<p>So, in this post, I want to help you get rid of your &#8220;big but\u201d by showing you six different ways you can start investing in real estate even without lots of cash or experience.<br \/><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/Maywffs-ff0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>6 Ways to Invest in Real Estate with Little Money or Experience<\/h2>\n<h3>1. House hack.<\/h3>\n<p><a href=\"\/renewsblog\/2013\/11\/02\/hack-housing-get-paid-live-free\/\" target=\"_blank\" rel=\"noopener noreferrer\">House hacking is this really awesome strategy<\/a> where you purchase a small duplex, triplex, or fourplex, live in one unit, and rent the other units out.<\/p>\n<p>It\u2019s especially awesome for two reasons:<\/p>\n<ul>\n<li>First, almost anyone can qualify for an <a href=\"\/renewsblog\/fha-guidelines\/\" target=\"_blank\" rel=\"noopener noreferrer\">FHA loan<\/a>, which requires a down payment of just 3.5%.<\/li>\n<li>Second, it\u2019s like training wheels for landlording. Not a lot can go wrong when you live next door. Of course, you don\u2019t have to live there forever. Soon, you can turn it into an awesome rental property that will hopefully provide lifelong passive income.<\/li>\n<\/ul>\n<h3>2. Try home equity loans\/lines.<\/h3>\n<p>Do you own a home right now that has equity in it? In other words, is your home worth more than what you owe on it?<\/p>\n<p>If so, you can potentially obtain a home equity loan or line of credit and get access to that money, which you can use as a down payment or maybe as funds for the entire thing if it&#8217;s enough. Pretty cool, right?<\/p>\n<p>OK, on to number three.<\/p>\n<h3>3. Use seller financing.<\/h3>\n<p>Seller financing is amazing, but it confuses a lot of people, so I\u2019m going to explain it using an example most people can easily grasp.<\/p>\n<p>Imagine I sold you my car, but instead of you getting a loan and giving me cash, you just make payments to me every month. Each month, you give me $200, and after a few years, you\u2019ve paid it off.<\/p>\n<p>That\u2019s seller financing\u2014and it works the same way in real estate.<\/p>\n<p>Seller financing is basically where a person decides to sell you their property, but rather than making you go get a loan, THEY provide the loan themselves, and you make payments based on whatever terms you set up together.<\/p>\n<p>Like selling a car on payments, seller financing works best when the property doesn\u2019t have an existing loan already on it. That can get kind of sticky with the banks, so look to do seller financing on properties where the current owner doesn\u2019t owe anything on it.<\/p>\n<h3>4. Look into partnerships.<\/h3>\n<p>I love partnerships. You see, when I first got into the real estate investing game, I wanted to buy properties, but I\u2019d go to the bank and they\u2019d basically laugh at me.<\/p>\n<p>But then I discovered the power of partnering. I realized that if I lacked the money to jump into a real estate deal, I bet there were others out there who lacked the knowledge.<\/p>\n<p>So, I quickly discovered a powerful formula for no-money-down success, and I call it &#8220;the deal triangle&#8221;\u2014because it looks like a triangle. I know, I\u2019m super original. If you have a better idea, put it in the comments below this post.<\/p>\n<p>OK, the deal triangle is simple. On one side, you have MONEY. Then, you have KNOWLEDGE. Then, you have HUSTLE.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-95260 alignnone\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/PickTwo-300x300.png\" alt=\"\" width=\"300\" height=\"300\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/PickTwo-300x300.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/PickTwo-150x150.png 150w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/PickTwo-768x768.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/PickTwo-1024x1024.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/PickTwo.png 1072w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><strong>Now, here\u2019s the key that\u2019s going to change your life: <\/strong><em>Pick two.<\/em><\/p>\n<p>That\u2019s it. People often think they need all three. But in reality, you just need two.<\/p>\n<p>If you don\u2019t have money, just gain the knowledge and use your hustle to make it happen. I can guarantee you there are a lot of people out there with money, or at least the ability to get a loan, who don\u2019t have the time to hustle.<\/p>\n<p>If you don\u2019t have the knowledge, then pick up a few books about real estate investing, like some of the books I\u2019ve written at <a href=\"https:\/\/www.biggerpockets.com\/store\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets.com\/store<\/a>\u00a0or watch <a href=\"http:\/\/www.youtube.com\/biggerpockets\" target=\"_blank\" rel=\"noopener noreferrer\">some of our Youtube videos<\/a> or <a href=\"https:\/\/www.biggerpockets.com\/podcast\" target=\"_blank\" rel=\"noopener noreferrer\">listen to the BiggerPockets Podcast<\/a>. Just don\u2019t spend $50,000 on some late-night TV guru with bad hair.<\/p>\n<p>Then, start hustling. Attend local real estate meetups and find people who might be great partners. Then, get it done.<\/p>\n<h3>5. Explore hard money lenders.<\/h3>\n<p>Let\u2019s say you want to fix up and sell a house\u2014<a href=\"\/renewsblog\/2014\/01\/07\/flipping-houses\/\" target=\"_blank\" rel=\"noopener noreferrer\">which we call \u201chouse flipping\u201d<\/a>\u2014but you don\u2019t have any money and don&#8217;t have enough experience to get someone to give you the cash. What do you do?<\/p>\n<p>Well, lucky for you, there are these businesses called hard money lenders and basically, that\u2019s what they do.<\/p>\n<p>They are super expensive, but they can be a great source of financing for a real estate deal. Just be sure that when you do the math on your flip, you include the cost of paying the expensive hard money rates and fees.<\/p>\n<p>And speaking of doing the math, our last tip of the day&#8230;<\/p>\n<h3>6. Get an incredible deal.<\/h3>\n<p>Look, when you find amazing real estate deals, financing becomes much easier\u2014no matter how much cash you have or don\u2019t have.<\/p>\n<p>Because great deals are the <em>foundation<\/em> of creative financing.<\/p>\n<p>If you have an incredible deal, you\u2019ll likely be able to find financing, <a href=\"https:\/\/www.biggerpockets.com\/blog\/find-private-money-lenders\" target=\"_blank\" rel=\"noopener noreferrer\">whether it\u2019s a private lender<\/a>, a hard money lender, a bank, a partner, or something else. Become super incredibly amazing at doing the math and you\u2019ll find that financing deals is the least of your problems.<\/p>\n<p>(And if you want to see the way I run the numbers, I host <a href=\"https:\/\/www.BiggerPockets.com\/webinar\" target=\"_blank\" rel=\"noopener noreferrer\">a free online webinar every week here at BiggerPockets<\/a>, where we find and analyze deals live.)<\/p>\n<p>So, are these the only ways to invest in real estate without cash or experience? Of course not.<\/p>\n<p>There are so many ways to put together real estate deals that a person could write an <a href=\"https:\/\/www.BiggerPockets.com\/nomoney\" target=\"_blank\" rel=\"noopener noreferrer\">entire book about it<\/a>. \ud83d\ude09<\/p>\n<p>But also, understand this\u2014in the words of the late, great Jim Rohn: <em>\u201cIf you really want to do something, you&#8217;ll find a way. If you don&#8217;t, you&#8217;ll find an excuse.\u201d<\/em><\/p>\n<p>It\u2019s time to lose your big buts and decide, once and for all, if you really want this.<\/p>\n<p>Then, go out and get it.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/real-estate-investment-calculator?utm_source=renewsblog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91220\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>What would you add to this list? Which is your favorite low or no money down strategy?<\/em><\/p>\n<p><strong>Comment below!<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Isn&#8217;t it time to let go of your if, ands, and &#8220;big buts,&#8221; and learn how to invest in real estate? Almost anyone who has made the leap would tell you yes! But you&#8217;re lacking money or don&#8217;t have experience, you say&#8230; Sorry, those aren&#8217;t good excuses to put off investing! Here&#8217;s how to make it happen. <\/p>\n","protected":false},"author":710,"featured_media":119866,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-95258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/95258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=95258"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/95258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/119866"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=95258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=95258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=95258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}