Starting investing with no money

[Taylor Brooks]

I'm getting ready to start investing in the Kansas City area. I have been doing my homework and really studying up on everything I should know. I know I won't have all the knowledge I need and I'll learn as I go. The one question I have at the moment is.... Are there any ways to get loans with no or low money down? At the moment I don't have much money to put into the investments at the moment. Thank you all for the help! Taylor

[Kim Tucker]

If you are buying a house for investment there are quite a few ways to get 100% financing.

1) Buy a fixer upper with a rehab loan where they lend 70% of after repair value for you to use for purchase and renovation. Then refinance to a permanent loan.  Some of the smaller small town banks have a rehab to permanent loan but will want 30% down.  Or work with a hard money lender for the purchase and rehab and then go to the small local bank to refinance into permanent.

We have several lenders that offer the above financing that attend the monthly meetings of Mid-America Association of Real Estate Investors.

2)  Get the seller to finance you.  If the seller has the right situation and motivation, they can be a great asset to the real estate investor by either financing your purchase or allowing you to take over their existing loan.    

3) Get a private individual who would finance you. Perhaps they have the cash saved up or they have an 401k or IRA that they could use to be your lender (were talking about that this month at our events and I am sure there are also self directed IRA resources here on Bigger Pockets)

I have done a LOT of deals and have used very little of my own money and very little bank or mortgage loan money either - mostly private money and IRA money.