People approach me all the time stating they want to get into real estate but have no money. The problem is that 9 out of 10 of those people have no work ethic, either.
However, for the people who are willing to work hard, I may have some tips to help you. Keep in mind that consistency is key. So if you are going to quit after two weeks, this probably isn’t the path for you. Any strategy will take time and money. But I will focus on those who you have a chance at wholesaling with little to no money.
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.
For Sale By Owner Sites
The first strategy is the most obvious: for sale by owner sites. These people are all ready to sell their houses. Generally, you will find they are too cheap to pay a real estate agent, but you still might find a deal. It will be better if you can use different strategies, like a lease option or owner finance. With owner finance, the price is not a big factor. The most important thing is the terms. To learn more about owner financing and lease options, search BiggerPockets. And please don’t be afraid to ask questions on the Forums. Talking to these sellers will give you a great deal of practice.
Ads on Craigslist
The second way is through Craigslist. Call the “for rent” and “for sale by owner” ads. Again, this has to be done every day. It will take time and work. A fellow investor in my market found a seller on Craigslist, and with my help, she was able to make $9k. This did not happen overnight. She worked on it every day of the week. I want to say this was for around two months straight. To work this strategy, you should block out two hours out of your day, every single day, to just make phone calls to these people. The more people you talk to, the better the chance you have at getting a deal.
The third tactic is the hardest; it is a old school strategy using cold calling. So you might start by buying a list or finding absentee homeowners. Then you would go to a site like 411.com and see if you can get their information. At that point, you would try to make initial contact. I know someone who only uses this strategy, and they do get deals, but they work very hard at it. Maybe you can go on your city site to see who has code violations and search for the seller to call them. This will take more time due to research. But if you don’t have any money and really want to get into the business, this can work. You might get a deal on the first call or the hundred-and-first call. Results will vary.
Knocking on Doors
The fourth way is by knocking on doors, and you can perform this in two different ways. The first way is by getting access to a highly targeted list like a pre-foreclosure list or by just randomly knocking on doors. If you don’t have a car, maybe start walking your neighborhood. Or get on the city bus to a different neighborhood and start door knocking. Most people will laugh and say, “If you don’t have a car, how can you buy someone’s house?” I’ve actually seen people with no car do deals and eventually make enough money to get a car and run a successful business. It all comes down to how badly you want it. This business is not for the weak. This business are for people who go out and make things happen.
In conclusion these strategies take no money to do. And you can start generating money if you are able to execute a deal utilizing these. I started off with no money, so I had to be willing to put more work in than the next guy. It’s simple, but not easy. I see so many people complain about their situation, but presented with the right information, they are still not motivated to apply any of it. I’m quite sure everyone has heard the saying, “You get out of life what you put in.” You have the option of taking on a lottery mentality while working your job for 40 years or doing real estate and retiring in 10 years or less. I have a friend who got started in real estate because of me and was able to become financially free within two years. He works a rural area and found a strategy that works for him.
Wholesalers (and aspiring wholesalers): Do you use any of the above strategies? What would you add to this list?
Let’s talk in the comments section below!