​3 Unconventional Ways to Invest in Real Estate Without Capital

So you want to invest in real estate, but you don’t have thousands of dollars laying around. That’s okay! Yes, in a perfect world, you would have the capital on hand to either buy the property outright, or at a minimum, supply a 20% down payment and secure financing. But if you don’t live in this perfect world, it doesn’t mean you can’t take your piece of the property investment pie. You just have to get a little more creative, that’s all. Here are 3 unconventional ways you can get in on the investment action, even if you don’t have the capital yourself.

Private Lender

Let’s start with private lenders. These are just regular people, like you and me, who are not associated with a bank or other financial institution, but who are open to lending their cash to investors - for a nice return, of course. Often times, you will pay a higher interest on private money, but when you don’t have the capital yourself or are unable to secure financing through more traditional methods, that’s usually a small price to pay.

So who makes a good private lender? Well, lots of people, actually. Private lending is considered more relationship-based than anything else, meaning it’s important that you have and maintain a good relationship with your lender. When searching for a good private lender, you have three main options: your primary circle, your secondary circle, and a third party circle. Your primary circle is made up of your family, friends, and trusted associates. These are people with whom you interact regularly and know you well. Your secondary circle consists of people you know through your primary circle. These are the friends and colleagues of those in your primary circle, and many new investors turn to this group because they’re counting on their primary circle to vouch for them. Lastly, you have your third party circle. These are people who specialize in private lending, and who you don’t know personally. While this may seem risky, it’s certainly not unheard of for investors to go this route.

Crowdfunding

No doubt you’ve heard the word ‘crowdfunding.’ It’s become a hugely popular way for people to amass capital for everything from medical expenses to tech startups. It’s also become quite popular where real estate investment is concerned. Here’s how it works: an investor contributes a small-ish sum of money toward an investment opportunity, along with with other interested investors. Once enough money is amassed, the project moves forward and everyone is entitled to a share of the profits. Spread the risk, spread the reward.

Raise Capital Using Other Methods

Yes, the title of this blog indicates that it is centered on investing without capital. But sometimes, you just need money to push the deal through. If this is where you’re at, there are lots of creative (and even some unusual) ways you can start building capital to use toward investment opportunities. Here are some ideas:

• Get a second job
• Ask for a raise at your current job
• Freelance (writing, editing, graphic design, web development)
• Be an Uber driver on the weekends
• Cut your expenses (cable, dining out, etc.)
• Donate plasma
• Tutor students
• Sell some of your stuff on Craigslist or eBay
• Start a blog and collect ad revenue
• Write online reviews
• Be a mystery shopper
• Teach online classes
• Rent your place out to travelers

There are literally hundreds of options out there to increase your income and ultimately raise capital. You just have to think outside the box!

Real estate investment is not just for the rich. Virtually anyone can invest in property, as long as they have at least two of the following: money, time, drive. If it’s money you lack, one of the options above may help. There ARE options out there, you’ve just go to look for them.