How do I begin investing with no money
Maple Shade, NJ · Member since 2014 · 6 posts · 1 vote
look up these terms I was just asking the same thing.
1. land contracts
2. "subject to"
look these up on google, bigger pockets, youtube, they are low cost ways to get your foot in but you have to start saving man. even if you get in you ned that reserve. good luck..
The other way is selling the contract. Find the property, get the comps, negotiate the contract get the contract signed and then find an Investor who will buy the contract basically at a mark up of what you negotiate the price. You can find topics as well as podcasts here at BP. Bottom line its called Wholesaleing, buy low sell low, this way you can get your funding that you want. After you get your feet wet so to speak you can then get into full scale fix and flips. Also if you have not do so, join your local Real Estate Investment Association (REIA) in your area, this way you can meet other individuals of like mind as well as Real Estate Agents as well as Investors. You can network here as well as at the REIA. To be an Investor it won't happen overnight, not like some GURUS claim, it will take a lot of hard work and networking but you can make it happen. Have a great and profitable day.
Chris,
To get your foot in the door with no money means you start where every you can. Few ideas for you, go to your local reia and see if any one there is looking for a bird dog or looking for someone to find deals for them. Put a agreement together and run with it. Do the idea of you getting your LIC Just pic one state for now. Be willing to work with another agent and to do open houses, remember on the open house You could also try whole selling it is not easy but a place to start as well. What your in need of is to make extra money consistantly and put that aside to get in on your first deal.
This is how you start investing in real estate in your situation:
Creative Financing
In a Nutshell
Part One of ?
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There are No Rules as to how you can or cannot structure your creative financing deals, other than what is legal, moral, ethical and using the guidelines found here
Creative real estate financing is not business as usual. You will be met with skepticism from critics who practice traditional financing usually real estate agents, attorneys, your friends family and the like. Mostly those that have never even purchased real estate. I can hear them now. You can't do that! It’s illegal it's risky.
Risk Taking. A while back I overheard an interview with Pulitzer prize author Jane Smiley talking about her book Horse Heaven. Jane related that our whole economy is based on a willingness to take risks. She's absolutely correct. There's risk in any business transaction. Creative financing has risk, most notably the due on sale clause, which is the core of these lessons. We will spend considerable time showing you how to beat, minimize and shift the risk of the due on clause.
Legal? There's nothing illegal in any of the methods employed here. These blogs is written for the state of California if you don’t at least have a basic understanding of the real estate principals and real estate financing applicable to your state, I suggest you go to your public library, book store, amazon.com, whatever and get a copy of the real estate principals, financing and laws that apply to your state. Although real estate laws go back to the feudal times in England and are fairly consistent there can be and are subtle and major differences from state to state.
Do I need a college education to buy real estate without cash or credit? If your able to read and understand these postings your in.
Can you still buy with No Money down? The definitive answer. Yes and No. It depends. The no money or nothing down deals are out there, they're just harder to find and have to be approached differently. (When this latest bubble bursts and it will...Creative financing will come into its own again.)
No Money Down?
Think of buying with no money down as 100% financing. In other words you're going to borrow all or most of the money needed to purchase the property.
Here's what I mean. You find a suitable property for let's say $100,000 the seller owes the bank $75,000 how to we purchase the property? You offer to take the property "subject to" the existing bank loan, and ask the seller to loan you some of his $25,000 equity by holding a note for $12,500 called a wrap or an AITD all inclusive trust deed.
Then you borrow another $12,500 from a third party who you would give a note secured by a second mortgage on the property as security for the down payment money.
Congratulations you just purchased a property for 100% financing or no money down.
I should mention here that most of you will have different reasons for needing the information found in these postings. Maybe you have good credit but no money. Or you have the money for a down payment but no credit.
Buyers verses sellers will want to use different approaches Whatever your particular need these blogs will address all of the techniques available to you to purchase and sell real estate creatively without cash credit or banks.
Use the information found here to assist you in filling the missing need in making your real estate purchase
The example used above is just one of the many ways the purchase could have been accomplished. However, by using other no money down or creative financing techniques such as a land contract, a lease option or equity sharing may be advantageous for you as a buyer or seller. We will explore all of these techniques in detail and more in subsequent postings.
But no mater what technique you're going to use you want to make sure it's a win win for the both of you, however the one with the better knowledge of creative financing will ultimately come out on top. So it's very important that you have an understanding of your creative financing options so that you as the buyer or seller and not the other party can use the correct or best way to structure the deal.
My lessons favors the buyer and will first point out their best approach and secondly the sellers approach. You as buyer or seller will have to determine the technique that works best for your situation. With that said let's get to it....Next time
If you need any help structuring any type of deal give me a shout
Bill
If you are living paycheck to paycheck as you say resist the urge to make your life even more delicate by borrowing money in so called "creative financing". This is a industry that honestly requires one to pay some dues in many cases. Doing this needs to come at the right time and rushing it will just net greif. If not done right you will become part of a group far larger than the Bigger Pockets website. Its the Empty Pockets group.
You can begin investing by purchasing up to a four unit multi-family owner occupied property using an FHA mortgage you will only be required to put 3.5% down - which could be a gift. Maybe a family member could lend you the money for a down payment? Maybe you have a retirement fund you could borrow the down payment from?
Hopefully your tenants would be paying your mortgage and you would be profiting monthly.
You could ask for the seller to pay the closing costs - sellers concessions.
You could use the rental income to pay the family member back you borrowed the money.
Please contact me with any questions you may have on financing!