How to Become a Real Estate Investor with No Money [Infographic]

Want to know the real estate strategies that require no money down investments?

Do you want to know how to become a real estate investor with little to no money?

In this article, you’ll discover how to become a real estate investor with no money or little money.

I’m happy to know that when the great majority of people who think of real estate investing they think actual “investments.” That is, you need money to start. But the truth is there is real estate investing strategies that require little to no money down.

When I first got into real estate investing I was blown away at learning the concepts and strategies that are used in real estate investing. Just to think that I did not need money to start investing in real estate was completely mind-boggling. To this day, I can’t think of an “investment” that requires no money.

Real Estate Investing Mindset

Before I go into the real estate strategies that are used to invest in real estate with no money down. I want to encourage the reader that if you are just starting out or even if you have started. You need to understand the importance of having an investor’s mindset.

I believe we are living in a day in age in which just about all information that we could ever want is out there. And that includes how to become wealthy. There are hundreds, if not thousands of books on real estate investing and other countless books on investing, earning more money, becoming a millionaire, etc. But the sad reality most do not ever take the initial step. They don’t start.

One of the key principles is that of passion. If you don’t have a passion for what you are pursuing. You will probably fail. You need to enjoy doing it even if you weren’t making money. This goes along with just about anything. I’m not saying you need to worship the pursuit but having a solid healthy passion in your goal or mission.

Real Estate Investing Education

There are multiple real estates investing gurus out there and as I mentioned before hundreds, if not thousands of books on real estate investing. YouTube can also be a great resource to start getting an education. If you want something more formal that is structured and based-on college-level curriculum, then click here to learn more. Otherwise, if you put in the work and research you should be able to get educated to start doing deals in real estate investing.

Become a Real Estate Investor with No Money

There are three strategies that I will give you to lay down the foundation and the key concepts that require little to no money down. They are real estate wholesaling, lease options, and seller finance.

Strategy #1 – Real Estate Wholesaling

Real estate wholesaling is an investing strategy that does not require money down. In short, the wholesale investor contracts with a seller and then reassign the contract to a buyer, usually another investor. You basically set yourself up as the middleman. These deals can bring in from a few thousand to ten to fifteen thousand each deal.

As I mentioned before, there is a significant amount of education that is required but, in this article, I simply want to give you the foundation, or the path to take if you are interested in real estate investing with little to no money.

How does a Real Estate Wholesale Deal Work

Real estate wholesaling starts out by simply finding a property, usually distressed, but not always. Once the property is located the next step is to find the owner. A public search may be required because these properties that you are searching for usually will be vacant (tall grass, boarded windows, etc.). Once you get in contact with the owner you negotiate a price that he/she is willing to take. To get this price there are several key numbers that you need, to properly and accurate estimate the deal. You need to determine the ARV, the rehab cost, holding cost, closing cost, buyer’s profit, and your own profit.

Once, these numbers are estimated you can use the 70% rule to estimate if the deal is workable or not. If it is, you will offer and negotiate the price with the seller. If the seller accepts, a purchase agreement is needed to be signed by both parties.

Your next step is to find a cash buyer, and this is usually another investor who is in the market to make the repairs and then retail the property at ARV. Once you find the buyer, negotiate the price and close on the deal at a title/escrow company.

Your profit comes in at the difference between what you pay to the seller and what the buyer pays. This can also be called an assignment fee.

Real Estate Wholesaling

Strategy #2 – Real Estate Lease Options

Real estate lease options involve leasing a home to someone who has a legal agreement to purchase the home within a certain time frame, usually 2-3 years. This strategy can be also known as rent-to-own homes.

How does a Lease Option Work

The strategy is quite creative and depends on the situation at hand.

Although there are multiple ways to use this strategy. One way is when an investor contacts a motivated seller. This seller is usually in distress, facing foreclosure, or upside down on their mortgage. However, the investor sometimes can offer a fair price on the home if the terms are good. It is either in the price or in terms of where the investor earns his/her money. And the investor lets the homeowner choose, but the homeowner cannot have both.

Let’s say that a homeowner is motivated and needs to sell but can’t. A lease option will allow the owner to sell “in time” over the course of three years. In other words, you as an investor lease option a home from the seller and agree on a price on the home and work out terms (down payment, monthly payments, etc.). Once you have the lease agreement signed an option signed you now can lease option the property to a potential buyer.

The investor earns money based on the difference between what he/she will pay for the house and what they sell and the difference on the monthly payments.

Strategy #3 –  Real Estate Seller Finance

This strategy is easier to understand than the others, however, you may need a little money for the down payment. Although, it is possible to negotiate a no money down seller finance deal. It may be difficult because the seller, of course, wants what is best in their own interest.

How does a Seller Finance Work

Seller finance is where the seller becomes the bank. Although, legal ownership changes the payment is sent to the seller. Seller finance requires that the seller owns the property outright and has no mortgage themselves.

For an investor, this strategy can become very beneficial because they don’t need to request money from the bank. Furthermore, this strategy can be done with those who have bad credit and no money.

If you negotiate with a seller and you meet the terms or price they may be willing to accept what you are offering. For example; they may not require a down payment if you increase the sale price, offer more on the monthly payment or have a higher interest rate.

Sellers who own their home outright may find it beneficial for them to be paid monthly than have a large sum of money from a sale. After all, they potentially could get more out of the deal when the become the bank and are now charging interest to the buyer. So, your negotiation skills come handy when trying to work out a seller finance deal.

Conclusion

Contrary to the belief. YOU DON’T NEED MONEY to invest in real estate. Even if you have bad or no credit. If you master these three strategies, you can also start investing in real estate. Although, it is easier to have some money for negotiation and to appease the seller it is not required. You will simply need to know what you are doing

This page may contain affiliate links. This website may contain content that comes from Amazon. This website and its pages are not intended to constitute legal, financial, or tax advice. The information on this website and its pages are not intended to constitute investment advice and all content are the views and opinions of the author(s), contributors, or administrators. Please read our disclaimer for more info.

Hi. My Name is

James Gheen

Welcome to the Bigger Investing website. I’m here to help you find the resources, motivation, and guidance for all entrepreneurial, investing, business, career endeavors, and more, so that you can invest in what’s most important. Your mind!

My focus is to equip you with expert sources, books, guides, articles, and more to help you achieve your personal goals.

Want to learn more? Take a look.

getabstract ad


Read in Graphics

Rich Dad Summit Ad

What Does a Career Portfolio Consist Of?

What Does a Career Portfolio Consist Of?

career portfolio is a collection of work samples and documents that demonstrate your skills, qualifications, experience, and potential to new employers. Many different aspects of a career portfolio can vary depending on the individual's needs....

How Can I Improve My Job Hunting Skills?

How Can I Improve My Job Hunting Skills?

ob hunting is hard. There are so many things to think about and do, that it can be overwhelming. But there are also some simple job hunting tips you can follow to improve your job search experience. In this blog post, we focus on the most...

What are Career Planning Tools?

What are Career Planning Tools?

areer planning tools are designed to help people better plan out their careers, which is important for several reasons. Knowing what skills you have and where your interests lie will help you find the best jobs that match those desires. Career...

What is Strategic Planning Experience?

What is Strategic Planning Experience?

trategic planning is an important part of any career. It's more than just a job title; strategic planners help guide the company towards its goals. This person will be responsible for developing strategies to solve problems, set priorities, and...

What are Career Planning Skills?

What are Career Planning Skills?

hat are career planning skills? Are they the same as career development skills? This blog post will answer this question and more. What does it mean to have a successful job search, or how can you tell if your resume is good enough for an...

What is Strategic Career Planning?

What is Strategic Career Planning?

hat is strategic career planning? Strategic career planning is a process of evaluating your skills, interests, and values to determine the best course for you. Career development consultants are experts in this field and can help you with...

How Do You Write a Career Strategy Plan?

How Do You Write a Career Strategy Plan?

hat does a career strategy plan entail? A career strategy plan is a document that outlines the goals and objectives of your business, as well as how they can be achieved. If you are looking to improve your business's competitiveness in terms of...

What are the Elements of a Business Strategy?

What are the Elements of a Business Strategy?

any elements go into business strategy. This blog post will explore what these elements are, and how they work together to help your business succeed. These include everything from the industry you're into the way you market your product or...

What is Single Branding?

What is Single Branding?

ingle branding refers to a business strategy that is focused on one brand instead of multiple brands. The single branding strategy is often used by companies such as Coca-Cola, Nike, Adidas, and Apple. Single branding can be beneficial for...

What is Umbrella Branding Strategy?

What is Umbrella Branding Strategy?

hat is umbrella branding? It's a business strategy that can help you grow your brand and make more money. The goal of this marketing tactic is to create a recognizable name or logo for your company, which increases customer loyalty and makes it...

What is Multi-Branding?

What is Multi-Branding?

hen you think about your business, you likely have a general idea of what branding means. Branding is the process of creating and maintaining an identity for a company in the minds of its customers or potential customers. This includes all aspects...

What is Family Branding Strategy?

What is Family Branding Strategy?

family branding strategy is a business marketing strategy that uses the family name or image as the brand. This type of branding technique can be very effective for companies with a strong and well-known family, such as The Walt Disney Company....

What is a Private Branding Strategy?

What is a Private Branding Strategy?

rivate branding is a strategy that can be used by entrepreneurs and companies to differentiate their business from competitors. Private brands are those products or services which have been created, manufactured, or marketed under one company's...

What is Range Branding Strategy?

What is Range Branding Strategy?

any business owners are tired of the same old branding strategies that have been used for years. They might not know it, but there's a range of branding strategies out there and it can help them break from the norm! In this blog post, we will...

Which REITs Pay the Highest Dividend?

Which REITs Pay the Highest Dividend?

hat are the best-paying REITs? Which commercial real estate companies pay the highest dividend per share? The answer to this question is not as easy as you might think. There are many factors that go into determining which REIT pays the highest...

How Can I Make My Brand Powerful?

How Can I Make My Brand Powerful?

he most important thing is to know your brand. If you don't, then it will be impossible for you to find a way to make it powerful. You want your brand to represent what your business stands for, and if that's not the case with how you're currently...

What Are the Five Main Areas of Branding Strategy?

What Are the Five Main Areas of Branding Strategy?

ne of the most important aspects of running a business is branding. What does your business say about you? Do you want to be seen as trustworthy, or professional? Your logo and slogan are part of this process, but there are other elements too -...

What is the Best Branding Strategy?

What is the Best Branding Strategy?

he best branding strategy is the one that works for your company. In this blog post, we will discuss what some of those strategies are and how they can be applied to your business. We will also provide you with a few examples so that you can...

What is a Maverick leader?

What is a Maverick leader?

maverick is a rebel. They are different from their peers in that they buck the trends, and think for themselves. A maverick leader is someone who does not follow the pack but leads it instead. This type of leadership has been around since ancient...

What are the Characteristics of an Assertive Person?

What are the Characteristics of an Assertive Person?

ssertive people are confident in themselves and their abilities, and they don't back down when it comes to defending what they believe. They know who they are, where they want to go with their life, and how to get there. Assertive people are...

Where is AI Used in Business?

Where is AI Used in Business?

rtificial intelligence is rapidly changing the landscape of business and industry. AI has been used in a wide variety of industries to make processes more efficient, improve efficiency, and reduce costs. In this blog post, we will explore where AI...

What is the Role of Artificial Intelligence in the Business?

What is the Role of Artificial Intelligence in the Business?

rtificial intelligence is one of the most important innovations in business. It has been an integral part of the development and success of many businesses, including Amazon, Apple, Google, Microsoft, and IBM. As more and more industries become...

Should a Leader be Assertive?

Should a Leader be Assertive?

ne of the most important traits that a leader should have is assertiveness. Leaders are often required to make decisions and take charge to be successful. But how does assertiveness play into this? In this blog post, we will explore what assertive...

What is Assertiveness in the Workplace?

What is Assertiveness in the Workplace?

ssertiveness is the ability to express one's opinions and feelings directly and straightforwardly. It can be difficult when people are unsure of how to balance their need for self-expression with their responsibility to show consideration for...

Why is Assertiveness Important in Business?

Why is Assertiveness Important in Business?

here are two main reasons why assertiveness is so important in business. First, it helps you to stand out from your competition. When people come across your website or company profile online, they can't help but notice how confident and...

What is the Most advanced AI in the World?

What is the Most advanced AI in the World?

t's a question that has been debated for years: what is the most advanced AI in the world? Artificial intelligence, or AI, has advanced to new levels of complexity and human-likeness. This article will explore some of the most advanced artificial...

What are the Four types of Artificial Intelligence?

What are the Four types of Artificial Intelligence?

rtificial intelligence is a hot topic these days. With the advancement of AI, many people are wondering what it means for humans and how we should prepare ourselves for the future. And with all this talk about artificial intelligence, you might be...

Real EstateHow to Become a Real Estate Investor with No Money [Infographic]