Business & Finance Investing & Financial Markets

Want to Invest in Real Estate without money or credit?

Investing in real estate can be very lucrative, while having your funds secured by an asset. That is why many people turn to real estate investing. One of the myths about real estate is that you need money and credit to get started. This is simply no the case. There are many ways to get involved in real estate investing when you don't have money or credit.

But before I talk about how you can get started without money or credit, lets talk about one of the most important things to keep in mind at all times. That is, make sure you stick to your criteria and know you have a good deal before moving forward. Many people get sidetracked by the "next greatest thing". Pick your strategy and stick with it. Focus is crucial to your success. You also need to be make sure you have a great deal before moving forward with it. One way to know you have a great deal is to ask experienced investors what they would offer for the deal. If they are offering less than what you are looking at, you need to lower your offer. All deals should be so good that you can easily raise the money or credit needed to get the deal done, not using any of your own money.

Here are 5 ways to do deals without using your own money.

1. Private Money. As the saying goes "cash is King". It doesn't have to be your cash. You can work with private lenders who have the cash to get a deal done. You find the deal, and they lend you the money to make it happen.
2. Partner or Joint Venture. There are many experienced investors who are willing to partner with new investors. They do this in return for a percentage of the profit of the deal, usually 50% or more. Consider a partner who has the money or credit to get the deal done. What you bring to the table is the deal and the "sweat" to get it done.
3. Wholesaling. This is when you get a property under contract and then assign the contract to the buyer who is going to close on the deal. You get paid an assignment fee out of the closing. This is a great way to get started since you don't need any money or credit to enter into the contract. The crucial part here is having buyers lined up who can close quickly on these deals.
4. Lease Options. You find a property where the seller is willing to lease it to you for a set period of time. You also have an option to buy the property in the future at a price that is set today. This allows you to lease out the property and make some cash flow without the burden of ownership. Once you increase the value in the property, or the value appreciates, you can then exercise your option to buy the house.
5. Seller Financing. Many homeowners today will consider seller financing because they need to sell the house and banks are not lending money like they used to. The seller will become the bank, you as the buyer make payments to the seller until the house is paid for or refinanced in the future.

These are only 5 of the many ways to buy real estate without money or credit. Go out there and make offers on real estate using these techniques. As always, be sure you have a great deal before moving forward.

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