Are There Workable Investment Plans In Real Estate For People With Small Money?
You bet there is! Wholesaling and taking over properties subject to are great ways to break into real estate with little to zero money out of your own pocket. I just flipped a REO worth $70k that I got under contract for $26K and sold in 2 days to another investor for $35K That's $9K in profit.
I also just partnered with another investor to take down a property that the home owner's deeded over to us. She provided the 3 months in back payments from her self directed IRA and we are going to rent it, or sell it with owner financing and split the profit 50/50. That should be monthly cash flow of around $200 a month to me and several thousand in cash from a down payment on the wrap!
Options are another way to sell property with little money out of pocket ($100) or non-exclusive options ($10) are another great way to negotiate a price with the seller, and sell the property above what ever your option price is.
If you want more information on creative real estate, check out my blogs at www.hubpages.com/profile/1scottcarson
yeah try investing in real property tax certificates. I will publish a hub on that subject soon.
Few investors are using their own money to invest in Real Estate. Usually an investor will take a loan from a bank and will invest in a real estate with an uphill value.
The best option is when you can rent out the real estate with a price much higher then the percentage you have to pay to the bank.
This way you can wait till the real estate price will grow enough.
Check out Tax Liens. You buy a lien on a property in the amount of the unpaid taxes - typically you get about 16%. If you aren't paid off in 2 years, you can foreclose on the property. Sometimes, if you are really lucky, you get a property for 5 cents on the dollar!
Check my hub on land buying tips
Take a look at my Hub about tax sales, maybe that will help. My cousin and I started with a couple hundred bucks each.
Forget tax liens. You don't need them. If you don't have a lot of money, you're not going to make much. 14% of 1000 is $140/year... big woop.
Tax sale stuff is great but there are much easier ways of getting it where you can operate on under $1000 (or much less). Read the free reports at these two sites and see what you think: http://deed-grabber.com & http://hooked-on-overages.com.
The suggestions here are good suggestions. In addition, to these suggestions. I will give you another one. It will all depend on how you decide to work around the issues of lack of money in how you work with this suggestion.
Although, some will tell you that you need money to utilize this next suggestion on who to get started in real estate investments, in reality, you don't if you look at the possible ways to get around the issue of you having not enough money or no money.
Look into hard money loans and also private money investors.
This type of money is not very well known to many except for those whom are involved in real estate in some capacity as real estate investors, agents, mortgatge brokers, etccc
This is how those expereienced investors tap into a unlimited source of hidden money not known to many or misunderstood to many as they may call these lenders predator lenders.
These lenders are far from predator lenders, if anything, they are awesome tool in your real estate investment toobox, that allows you to go out and at will hunt down great real estate investment deals and purchase them quickly at large discounts some times.
If you do not have the money, go to a real estate investor club meeting in your area, must sit at the back of the room to be able to see who are the investors when the group president asks those in the audience who are full time investors and they raise their hands
Now go up to them after the meeting and tell them about your interest in getting hard money loans to do your own deals, and would they be interested in having you help them in some capacity with making it happen with hard money lenders. Ask them do they have any ideas on how you can work together where they benefit and you the same.
Will this be easy.... No! Is it possible ...Yes! As long as you are willing to get out there and ask people and ready for rejection, people telling you no, then you will get past a big obstacle in getting started which is the fear of being told No many times.
You see the more no's you get the closer you are to getting a "yes", food for thought.
The best place to learn about how can you get started in investing with little money for Free ...is at real estate investment meetings and create partnerships.
This is just one idea, I am sure there will be many more at your local real estate investment club. Good luck check link below...
Check out this site at - http://www.creonline.com/real-estate-clubs/
I found myself in the same situation and have managed to purchase several revenue properties with the help of partners who have both cash to invest and a good reputation with the banks. You would think that if someone has both cash and credit they would have no use for you and would just go out and conduct the deal themselves but actually if you start talking to people that you know about your plans you may be surprised by the amount of people who have the funds but lack the necessary skills and desire to purchase, and then manage a revenue property. If you provide the expertise and management skills (educating yourself as much as possible is critical) and are willing to do most of the leg work you will make a very strong team as you are both bringing something to the table. Just be sure that before teaming up you both have a very similar view about the short term and long term strategy that you will be using and your overall investment goals (I am a strong believer in just buying and holding well-run properties that pay themselves and provide some cashflow). Completely plan out ahead of time how you plan to deal with things like day to day operations, accounting, banking, legal issues, how to dissolve the partnership if it becomes necessary in the future, etc. I hope this was useful. Good luck.
There are definitely ways to invest in real estate with small money. Assignments are a great way to get started with little or no money. You can find a good deal on a property lock it up with a contract and assign the contract to an investor and make money in the middle. If you are serious about making money in real estate with little or no money go to http://realestatebook.hippojummp.com for a great real estate investing book. Good Luck!
Hi ngureco! That's a good question. And the fact is you do not even have to spend your own money to make money in real estate, believe me for I've done it many times in my almost 13 years in the real estate industry. You will find my original answer in my hub that's titled using your question. The answer was kind of long and Hubpages refused to send it for its size and it was suggested to make a hub about it instead, which I obliged. Please check and it might just be as helpful to you as with the other answers.
Scott Carson's answer below is great, and very clearly outlines several specific ways to take down property with no cash of your own. (there are several more,..but Scott's are good one's to start with!) I have actually bought over $50M worth of real estate ($21M of SFH and $35M of commercial projects) - without a SINGLE DOLLAR of my own cash!
The key to buying without your own money - find the deal. Once you find the deal, all else follows. (including the money!)
Personally, I have gotten really good at property analysis and unearthing deals from a variety of sources. Once you master those two areas of the business - you will be all set!
Before entering into the property world Sarah Barrett faced many financial problems.she has invested in a £ 9.99 phone and began by providing pamphlets to households! Since then, the empire has grown and now Sarah is helping people solve their situation.
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