Attempting to invest with no money. Is there a way?

3 Replies

I am in Atlanta and just starting to get into real estate investing. My strategy now is throwing everything at the wall and see what sticks.

If anyone can give me some advice on how they started out and what approaches I can try to get the ball rolling I would greatly appreciate it.

Thank you in advance.

Kasaundra Johnson.

@KaSaundra Johnson Welcome to the club! So, I'm by no means experienced and I've been trying to find this out myself. 

Here's what I came up with so far... Wholesaling, Lease Sandwich Options, and Finders fees are among those that I don't yet know about. The problem we have is that we have basically no leverage whatsoever unless you have credit & work history.

Like I said I'm not an expert but what I can say is that after reading, listening, and calculating is that the more skin you have in the game (capital, leverage, relationships, credit, knowledge, etc.) the better. You're like me that I don't have an abundance of these. 

Keep me posted if you found something I don't know about!

Typical real estate investing involves putting at least a small amount (10% or more) into a deal.  Since you won't be taking this route, expect to provide time and hustle of equal or more likely greater value into the deal.  Why greater?  Because again, this is not "typical" and when things are not typical they require more than typical effort to succeed.

Let's explore the Lease Option, as an example.  This is one way to invest with no money, or very little.  You find a Seller and propose a deal where you agree to pay him $X to purchase the property 2 years from now but in the meantime you will lease the house from him/her and get his/her permission to sublease to someone else.  Then your goal is to find a tenant who will pay you more in rent than you are paying in rent to your land lord/Seller.  The repairs, taxes, and insurance are all covered by the owner, so all you're responsible for is making sure the tenant doesn't tear the place up and pays you enough rent to cover your rent to the owner and a reasonable profit margin for your time, effort, and risk.  Meanwhile, the value of the property is hopefully going up and you are banking the rental profit, giving you enough time and capital in 2 years to cash out the owner/Seller.

How many Sellers will sign up for a deal like that?  My guess is very few...maybe 3%?  So while the typical investor using cash or a loan can buy a house the house almost 100% of the time, you will have to make hundreds of calls before you find someone who will do a lease-option and give you permission to sublease.  

But that's okay.  You are investing time and hustle instead of money.

The nice thing is once you've done it successfully once, it's easier to do it the next time.  You can showcase your success and then maybe 5% of your callers will respond positively.  You grow your reputation as someone who can make these "not typical" deals work, and that should make it easier to find more people willing to participate.

@KaSaundra Johnson

I go to the meet up at the ivy Buckhead every last Tuesday of the month , you can also see the recorded video of the meet up on utube at Atlanta rei meetup . It’s free & has lots of real estate people that do everything in real estate with tons of experience.