Real Estate Investing - With No Money, Credit, or Assets
By Pierre Mouchette | Bits-n-Pieces
Investing With No Money is Not a New Idea!
If real estate is an investment strategy, there will always be a way to profit without using your money or credit. Knowledge is power, the properties are out there, and so is the funding. You only need to know where to look!
Did you know that most real estate moguls started by putting deals together with little money or credit? Their success was based on having the correct information, making the right connections, and employing the proper strategies.
Proven Real Estate Investing Strategies
Even when it comes to everyday Investors or Wholesalers, making a high income is achievable by practicing well-established and proven strategies. Look at the following four real estate investing strategies you can use with no money or credit!
Strategy #1 – Wholesaling Without Money or Credit
You do not have to own real estate to profit from it; Wholesale Dealers buy and sell properties through double closings. In this scenario, the dealer finds a property, signs a purchase contract with the owner of record, and then markets the property as an owner by contract (A to B transaction).
Once the Wholesaler finds a buyer, then signs a contract with them for a higher price than the first contract with the owner of record (B to C transaction). The closings are concurrent, and the dealer walks away with the profit spread from the first to the second contract.
Note: In most cases, the end buyer will have to be a cash buyer since most lenders have concerns with title seasoning unless you deal with a local bank or credit union. Double closings are legal if done correctly.
Strategy #2 – Wholesaling
Real Estate Bird-Dogs search for properties! Real Estate Bird-Dogs (REBDs) contact real estate wholesalers and investors, compiling a list of their needs, requirements, and property types. With this criterion, the REBD will search for properties and present them to wholesalers and investors for a fee. The fee can be as much as 50% of the profit, and a wholesaling agreement defines it.
Strategy #3 – Subject To
You can take over the seller’s mortgage payments, even if the mortgage is not assumable. Remember, the due on sale is only a clause and not a law. The methodology to this is as follows:
Wholesaling is straightforward, and to make money in real estate because you utilize transactional funding for your wholesale real estate deals (flips), is simple. In today’s market, the rule is to buy and sell low. The lowest profit you should make on any wholesale transaction is $5,000.
Another reason wholesaling is an excellent real estate strategy is that you will not have any out-of-pocket costs when you do it right. It means you will walk away from the closing table with a check!
If you are creative and open to thinking outside the box, with no money and no credit, real estate wholesaling is the way to go!