Is Property Investing For You?
“Property Investing” With No Money Down – What Does It Mean?
What To Know
Of course, buying any property will need a cash investment. But with some know–how, that money doesn’t have to come out of your own savings account. Using other funding channels. Such as home equity or co–borrowing.
These 2 examples can be a great way to get started in real estate investing if your current savings are low to none.
6 Ways To Start Property Investing With No Money
1. Rent Out Your Primary Residence, And Buy A New One
Simply, getting out of your comfort zone will be your first step. Rent out your home, and rent a cheaper home. By doing so, firstly you started to make an income. Secondly, you can use this income to start with.
- Traditionally, investment property loans require a higher down payment and come with higher interest rates. Typically, you need to put down 20%
- Interest rates on investment property tend to be higher by 0.5% or more than they are for your primary house.
Basically, you’re investing by renting out your home and financing your next property as a primary residence. Meaning you’ll live there full-time.
This will enable you to pay lower interest rates on both properties. And if you are still paying mortgage on your first home, you can use the income you make from renting to pay for all or part of it.
2. Leverage The Process Using Home Equity
Home equity in simple words is pulling out cash from the money you owe to your property. Once you pulled the cash, use it to buy a new property, as a down payment. So you feel it, you’re using almost no money out of your pocket by doing so.
If you have a high credit score and own another property with equity, you can borrow against that equity by taking out a home equity line of credit (HELOC) or a home equity loan. You are able to obtain a loan or line of credit that is up to 75% or 80% of your property’s value, as determined by an appraisal.
3. Find A Seller Financing Deals
Seller Financing is using a seller to finance to instead of banks. Some sellers will accept selling the property to you and pay in installments, of course with a formal agreement between you both.
In this scenario, the seller acts as the lender for the buyer, rather than going to a bank to obtain financing. The buyer pays back the loan over time according to the repayment terms outlined in a legal contract, such as a note and mortgage.
Many sellers will decide exactly which terms they will accept or hold for financing, such as a specific interest rate, down payment, or loan period, whereas others are open to negotiation.
If you are an experienced negotiator and are able to determine the seller’s needs, you may be able to obtain financing with no money down or have the seller carry a second mortgage while getting a first mortgage from the bank.
In my courses, I’ve put formulas and well-played techniques that you can use with homeowners and landlords for negotiating. Remember, when you seem experienced to them, they will accept your offers.
But the skill is acquired through knowledge and practice, and that’s exactly what you will do with my courses.
4. No Money, No Problem – Find A Co-Borrower
This way is all about partnership, you should be good at it. With partnership comes power, they say if you need power, make unions. It is pure logic.
I do it. I always looks for partners to partner with me and to share the profits. I would welcome any partner who is serious about partnership and investing. If you are one, contact me now. Let’s get to point now.
Anyway finding a co-borrower is finding an individual who has the money for the down payment if you don’t. This is individual can be a friend, family member, or even a stranger. Most importantly he/she is willing to invest with you.
You approach them by a win-win situation. You will do the work, and they will provide the cash. The important thing here is that you did a quite good research and saw an opportunity to invest in this/these property(s).
Then you can partner up with your co-borrower and practically, you’ll be partners.
You share responsibility for monthly payments on the house, and you can also share profits that come from rent payments or equity buildup.
5. Consider A Seller’s Current Mortgage
This way is by taking over the seller’s mortgage, meaning you will continue paying it.
6. Use Hard-Money Loans
Property investing is not for particular people in this world. I know people that build wealth from nothing using these ways and methods. As I said earlier, all you must do is putting the work and believing you will succeed.
With no these simple points, you won’t make in anything, not only property and real estate investing.
Check my courses, it will help you start from the first week. It will make you skip many steps and enter the market right away.