It could be possible to invest in real estate with no money of your own, but it has to be someone’s
Real estate is one of the most global industries on the planet. Various transactions and acquisitions take place in this sector on a regular basis, and a huge amount of money changes hands every day. While most of the finances are provided by banks and other lender institutions, there are quite a few people who do not fit the selection criteria to get a loan approved.
For people looking to invest in real estate with no money of their own, there are quite a few options if they get turned away by the principal lenders due to a bad credit score or any other such reason. The following are some of the ways in which people can invest in real estate with no money.
Private money pools
Everyone knows of that one particular Lala who is “giving” money to those in need of it
Under this method, money can be obtained from your father or from a friend or more routinely from a set of people who are in the business of lending money. Very rarely do they care what it is being used for as long as the terms and conditions for returning it are met. These often involve rates higher than the bank as the lender knows that there is no other way for the borrower to get money and hence drive home his demands. What an investor needs to be careful of is that this money obtained from the lender has not been obtained by the lender in an illegal or unaccounted manner. This would lead not only to legal problems, all plans of owning a property would go down the drain. One of the main advantages of this method of investing is that there are fewer forms and formalities to go through and the money can be obtained faster.
Getting a second person on board to finance the operations is another good no money investing option
A lot of times one may have an idea but not enough money to execute it, and as a result, a good business idea fails. This is when getting into a partnership with someone who has the financial clout is a good idea. If the idea seems good enough to the prospective lender, then you have your finances ready. More often than not, these lenders are not interested in the daily operations, and you will have full freedom to run things in the manner which you deem best. A classic case of ‘You scratch my back, and I will scratch yours.’
This involves getting hold of property contracts and signing agreements with owners to sell at a certain price
Another interesting option when one wants to invest in real estate with no money of their own is to try their hand at wholesaling. All one needs to do is find a property that is being sold and then talks to the property owner and makes a contract where he or she can get the property sold if the asking price is met. In some ways, you perform some of the core functions of a real estate broker and end up earning money via commission by getting a buyer and a seller to meet.
These properties have been taken away due to some default by the original owner and are often available for a steal
Many foreclosure properties do not need a down payment, and if you are lucky enough to find one which meets all or most of your criteria, then you have just made an investment with no money of your own. There are other properties as well which offer similar incentives and can be looked into if money is a problem.
This approach involves getting the seller to finance the sale of the property
How well does that sound to the ears? Not only do you get to own property or luxury villas in Bangalore, but you also get the owner of that property to give the money to make the deal happen. The only problem is that not everyone selling a house has such means and not everyone who has the means would want to follow such an approach. Nevertheless, one would never know if they did not try their luck since that’s the only thing they have anyway.
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