It’s not too late for you to invest in real estate. With numerous strategies that can help you in real estate business, it’s possible that you can enter the industry even if you lack the financial means for down payments and in buying and selling.
Why are more and more people interested in real estate? One of the huge reasons is the never-ending demand especially when you make it a long-term investment. Some people buy a house without really living in it. They just wait for the time that the house appreciates in value to sell it off. Furthermore, real estate is one of the most stable sources of incomes especially when you lease your property in an urban area. However, most aren’t aware that they can actually enter the industry with little to no cash. Here are some ways to do it.
This someone can be anyone that you could trust with your reputation. Of course, trust is a two-way street, so you must rely on each other’s backs to make a good deal out of an investment. Since you don’t have cash, this partner could be your source of money. The ideal situation here is that they should be looking for something to invest in and you should have a concrete plan as to the return of investment and the split of profits.
Seller financing is where the seller gives you a loan instead to buy their property. Instead of a down payment, you just have to pay high monthly payments at a given time. Some people were successful in seller financing as in without making loan payments because they had their renter pay the mortgage loan in the form of monthly rent. If you’re lucky (as a buyer), the seller can give you time allowance wherein you won’t start paying for the next few months. The agreement should be visible in your signed contract so that both parties are well aware of the terms.
In real estate, wholesaling is a fast-paced strategy wherein the wholesaler makes a contract with the seller, then advertises the property to prospective buyers. In this sense, the wholesaler doesn’t make any renovations to the real estate property and instead makes a profit after the seller and the buyer signs the deal.
However, the downside of this strategy is that the profits aren’t quite big. But if you make it a sideline as with other no-cash-needed real estate strategies, you’re good to go. Also, you can do this without moving by foot or commuting as wholesaling can be done via phone or online.
This is the type of loan where credit scores aren’t the main factor as to how much the lender is willing to lend. In short, the mortgage loan doesn’t come from the bank, but instead from a private lender. They are more focused on the value of the property rather than your financial track. However, this type of loan has high-interest rates and high fees. If you’re not confident that you can get a return on investment within a set timeframe, this is not for you.
Not everyone can indulge courage to do so. But when you get the hang of it, it will make changes in your life and you could be one of the many who have shared their success stories!