Some rules are unseen and unspoken. If you violate them… weird things may happen. You may find yourself desperately wanting to be involved in real estate development for example. Yet, you get nothing done in the physical realm and years may slip by and you’ve spun your wheels to no avail.
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
The Five Cs:
Imagine yourself gaining clarity on what it takes to get a real estate deal done. It always involves the 5 C’s of banking right? Leverage and real estate are like peas and carrots. So, sit here with me in the … err..forest on the park bench, grab a Christmas chocolate, and lets review:
- Cash: The quasi myth of zero down real estate has been a bright shiny object for many investors…don’t get stuck in this narrow realm of deals. Because leverage is so prevalent in real estate it can be counter-productive to invest this way.
- Credit: If this is your constraint work hard on fixing it. Evaluate the ways this system is set up and make it work for you.
- Character: Life is easy when your word is your bond.
- Collateral: This one can be challenging if you’re trying to break in to the investment quadrant. With the economic realities as they are getting ahead may appear to be tough.
- Capacity: This is also a tough one starting out. Example, a lot of banks will put you into a spin saying it takes two years of land-lording experience to get a loan.
How did anyone ever get a loan?
The One Big O
Opportunity….Oh Yeah Baby!
I don’t care what the Grinchy’est Grinch will say, even if you lack some of the above you can force your way into the game. How? If you have big O all the others will find you through joint ventureship and YOU doing a lot of work.
This is why wholesaling is so revered and despised. It’s a great way to start with low cash. However, where most go wrong is they never really learn what is truly a great deal. However, with sweat equity you can market your way into this game.
The key therefore my friends it is to understand how to find then shop Big O. It’s okay to watch late night infomercials and get inspired. If you what to see true results in my NOT so humble opinion…find a true bonafide legit real deal BIG O!
Photo Credit: rishibando