It's no secret that at first glance, investing in real estate can seem like it would take you 10s of thousands of dollars to be able to start investing in real estate. Honestly, that couldn't be farther from the truth. I’m going to show you how to buy real estate with no money. Yes, really. It’s also A LOT easier in today’s market than it has been ever before. Many people believe that buying real estate is only for those with a large amount of money, but that's not the case. I'm going to give you some strategies that can help you purchase a property even if you don't have a lot of cash on hand.
One way to buy real estate with no money is through owner financing. This is when the property owner agrees to finance the purchase of the property for you. This means that you would make payments directly to the owner, rather than to a bank. Remember back in the day when interest rates were 2-4% through a bank? Well, it didn’t make much sense to do owner financing whenever you are getting those rates because when you are owner financing a property you will likely be having to pay a higher rate like 5-7%. But now with rates being at 6-8%, you can be on the same footing as the banks and it’ll cost you potentially no money down and the property will stay off of your personal credit report. Don’t worry if you have bad credit and no money because you can do owner financing without either of those. But if you come up against an owner financing deal that requires a down payment, don’t worry because I’ll show you exactly where to get the money later in this video.
Another option to consider is a lease-to-own agreement. This is when you rent a property with the option to purchase it at a later date. This can be a great option if you are unable to qualify for a traditional mortgage, but want to start building equity in a property. It can also be a good way to test out a property or neighborhood before committing to buying it. Typically you’ll be renting out the property for 2-3 years then purchasing it but here is a hack for you; rent out the rooms once you are living there. This will cover your “rent”. Now, not only have you started this process of purchasing this property, you are now living rent free. You need to be sure in the lease it says you can sublease the property and if not, see if you can negotiate for it to be in there. This allows you to lease out the property even though you are leasing it out from someone else. You need to be careful and do your research on the person or company you are doing this with just in case you are suspicious.
There are also government programs that can help you buy real estate with no money. For example, the Federal Housing Administration (FHA) offers a program called the FHA 203(k) loan, which allows you to finance the purchase of a property, as well as the cost of repairs and renovations, all in one loan. There are also state and local programs available that can help you with the down payment and closing costs. You can just Google housing assistance in whatever state you are in and see if you meet the requirements. Now, you have all of the repair costs covered, you will have your down payment covered by a government program, and now you are set!
Another way to buy real estate with no money is through partnerships. You can find a partner or partners to go in on the property with you. This can be a great way to spread the risk and the costs of the property. Just make sure that you have a clear understanding of the terms of the partnership and that you trust your partners before entering into any agreements. I hate it whenever YouTuber’s will tell you this but don’t tell you where to look to find people to partner with so this is where you are going to find them: go to your local REI meetups or country clubs. Once you are physically at those places, just strike up a convo with people. Don’t ask for their money right away but just get to know them, their goals, wants, etc…
Another option is to use crowdfunding platforms to raise money to buy a property. This method allows multiple people to invest small amounts of money into a real estate project, making it possible to buy a property with less money. But it is important to research the platforms and make sure they are legitimate and regulated, also to understand the fees and regulations associated with crowdfunding.
Buying real estate with no money may seem impossible, but with the right strategies and a little creativity, it can be done. Whether you're looking to use owner financing, lease-to-own, government programs, partnerships, or crowdfunding, there are options available to help you purchase a property. Remember to do your research, stay informed and seek professional advice, and you may be on your way to owning your own property.
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