How To Invest No Money

Question

How are people investing using other peoples money? Got about 9k I could use of my own though.

Erik Browning · Answer

Hey @Tremon P. first, welcome. Second, what state are you in?

I see that you've posted a handful of times about getting into real estate or lending at some capacity - did you ever take the leap? If not, no worries, you will find your path.

The reason I ask that is because there are ways as both a conventional buyer as well as an off market buyer to invest with no money, however none of them are exactly easy. 9-5 job, family commitments, etc. may be the things that you "think" are keeping you from taking the plunge, but if you really want to do it you will find a way.

The answer to your question is all over these forums; whether you join the military and buy a home with your VA entitlement, use a 0% down USDA loan, STR arbitrage, or borrow money from friends for a down payment. It's all written here many many times.

Maybe the question to consider instead of asking how to invest without money is "how can I make the jump into this career?"

If you want to learn to wholesale, find a wholesaler and tell them you'll hang signs for free. If you want to work in lending, apply for a processor job that requires no experience. If you want to learn to flip homes, find a flipper in your area and tell them you'll work as a laborer for free on weekends in exchange for them showing you a thing or two.

Learning the skill is the real investment, not just the returns.

Offer what you have of value and learn as you go - that's what we're all doing here. None of us are experts, every single one of us learns every day, and everyone here wants you to succeed. You just have to take the plunge feet first into it.

Steven Foster Wilson · Answer

By partnerships a lot of times. I feel as you become more knowledgeable and passionate about RE, people are more interested and willing to invest with you as well. As time as gone on I have been blown away by how just sharing my passion with people makes them interested enough and ready to invest. Know your stuff and people will want to follow.

Brandon Onwuka · Answer

Hey Tremon,

When it comes to using other's money, it all comes down to providing value. For example, it can be time consuming and difficult to find deals. If you find a partner and supply them with deals, you could work out a way where you would split the costs in the deal. There are also wholesale and creative finance options.

Sam Hudacek · Answer

The first way using no or little money down would be utilizing the FHA loan, typically you only have to put 3.5% down as long as you are willing to live there and pay PMI. If you are a veteran a VA loan would be your best bet.

As far as other people's money, you can use family or friends to partner up and have them fund the down payment/closing costs, and you can manage the propery and split cash flow by a certain percentage utilizing a promissory note.

Or you can find a deal and present it to investors, as long as you're confident and the numbers make sense. If they believe they can earn a good ROI then they might be willing to fund the property.

Or you can use hard money lenders or get creative with seller financing.

I would recommend buying the book Investing in Real Estate With No Money Down by Brandon Turner. You will find plenty of creative ways of obtaining real estate with no or little money down. Hope this helps!

Eliott Elias · Answer

Find a good enough deal and you can find partners who’ll buy the contract from you, or partner with you

How To Invest No Money

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