How to Invest in Real Estate with No Money and Get to $100,000 for Investing
Real estate investing is BY FAR the best way to make money as passive income. Instead of having a J.O.B. (Just Over Broke), you can make passive income from the rent you receive from your tenants.
Now, it is TOTALLY possible to learn how to invest in real estate with no money AND make $250 or more a month in rent.
However, people always have two thoughts while investing in real estate:
- How do I buy a property to make money in passive income
- How to I invest in real estate with no money
So, I am going to show you how to in investing in real estate with no money.
Yes, you heard it right! No Money!
Now, this investing in real estate is not easy. It does take work and patience to get something for nothing. It is very possible though and I have many students that I coach in real estate that have done it before.
You need to be more creative and discover different ways when getting started in investing in real estate with no money. You need to invest time in building skills and beneficial relationships.
Although there are many ways you can purchase or invest in real estate without handing a payment at settlement, it is important to understand the advantages and disadvantages of each type of deal before signing the agreement paper.
To invest in real estate, first and more importantly, you need to do your homework.
The real estate market is full of risk and even without money, the business is at risk if you don’t research the property and market before purchasing and completing a sale.
We can find various ways to start investing in real estate with no money. The options include borrowing money as well as unusual and creative paths to success.
How to Invest In Real Estate With No Money
Seller Financing for Investing In Real Estate with No Money
One of the most popular proven ways to invest in real estate is through seller financing, which means purchasing a money mortgage. If you don’t have money, why not get the seller to finance their property to you?
You need to search for those types of sellers who would be open to selling their property to you with seller financing terms.
For example, you can negotiate monthly payments on the property on an 8-year deposit schedule.
In most cases, the seller doesn’t ask for all the money at once, and once you figure out what they really want, then you might be able to convince them to sell their property to you by spreading out the payments over time as well.
Remember that everything is negotiable in real estate, and if you find a property that you want to buy, you can actually approach them with seller financing terms.
Simply hold your nerve and offer higher monthly payments instead of a down payment.
Find a Partner for Investing In Real Estate with No Money
This requires the ability to build relationships as you need to form a mutually beneficial partnership to purchase the property.
Attending real estate meetups and getting involved in the investor community will help you meet different kinds of investors, and you’ll have a higher chance of getting a good deal.
There are plenty of investors who want to invest but don't have the required real estate knowledge and time.
If you prove to them that you are a hard worker and offer a good value, you can actually make huge money with little or no money in the real estate business.
You can also work in partnership with another person where one partner could bring the cash to buy the property. The other partner brings the deal, does the necessary work, and eventually buys and sells the property.
This is a great way to invest in real estate with no money. Once the property is bought and sold, the partners would share the profits over time.
There could be various types of partnership depending on the structure, like:
- A joint venture – where the ownership of the property is shared percentage-wise; Rental income, equity, and profit are all shared with the partners.
- A lending agreement – where you receive a preferred return on the initial investment
- A private loan – where the partner is paid with a monthly payment with principal and interest payment
- A combination of all of the above
Hard Money or Private Money Lenders for Investing In Real Estate with No Money
Utilizing hard money lenders is another way to get into real estate investment with no money.
Borrowing money from hard money lenders usually has less demanding paper-work requirements than a bank. It is possible to get 100% financing for your purchase with the right lender and an amazing deal.
If you are short of finding these types of lenders, you can work with your partner, and you can ask your partner to bring a half cash amount, and you can ask lenders for the rest of the cash.
Private money lenders are also similar to hard money lenders, but instead of asking the money from someone who is in the business of lending money. You would be getting a loan from someone you have a personal connection with.
With a private money lender, you can actually negotiate everything, such as loan amount, interest rate, payback time and terms, etc.
Be responsible and pay your private money lender back. It is important to build their trust because it is much easier to invest with no money in the pocket with a private lender than hard money lenders.
Ask yourself if securing a deal is worth endangering your relationship with someone you know.
Wholesaling for Investing In Real Estate with No Money
Wholesaling is the process of finding cheap and discounted properties, assigning the deal to a potential buyer at a higher price, and getting paid by the seller to do so.
Actually, you work as a mediator between sellers and investors. You need to find good deals for investors, so they don’t have to work hard, and they pay you a handsome fee for finding the right property for them.
The hard part about wholesaling is that you need to find better deals so that you can make a good profit, and you must know how the real estate business and the market work.
These are the skills that you certainly want to learn, but it takes time. Newbies should not become a wholesaler without having a strong network behind them.
Wholesaling in real estate does not necessarily mean the sale of multiple properties at a lower price.
What it means is that the wholesaler contracts a property with the seller and finds a buyer interested in buying the property.
Home Equity Loans for Investing In Real Estate with No Money
An alternative option to investing in real estate with no money is taking home equity loans.
If you already have one home and you want to invest in another home, you can tend to capitalize on the equity of the first home and then use it to finance the new home.
The idea is like having a credit card with a much lower interest rate. You can take money from the bank or lenders to get a home equity line of credit, then pay it back after you sell the property.
Investors usually use this type of strategy once they have a few rental properties and can take out a loan against one to buy or pay for the next one.
Banks and numerous other financial institutions offer home equity lines of credit, which allows the investors and buyers to capitalize on the equity that they already have.
House Hack for Investing In Real Estate with No Money
The strategy involves earning rental income by renting out the primary residence. The idea here is to find a home or property you own that will make a good investment in the long term.
The other idea also involves buying multiple buildings or properties, living in one unit, and renting out the others.
This way, house hacking allows you to simultaneously mitigate the risk of vacancies and helps you in building cash flow.
Be careful, and do your homework in terms of researching, financing, and acquiring real estate properties.
There are always bad deals, scams, and frauds out there, so be sure that you are spending your time and energy on the right steps.
Microloans for Investing In Real Estate with No Money
If the economy continues to shape the way of real estate investments, microloans can be a valuable option.
Issued by individuals rather than banks and credit unions, microloans are yet another way of lending money to make it possible for people like you to invest in real estate.
As the name suggests, these types of loans are smaller than any other loans that are usually offered with the bank and other financial institution financing.
Also, you need to keep in mind that a lower balance means this type of loan is less strict in terms of qualifying your credit score, which can be considered by those concerned about borrowing the amount.
Criteria for loan approval may vary from borrower to borrower depending upon the applicant’s current financial situation.
Government Loans for Investing In Real Estate with No Money
The list of government loans:
- FHA loan
- USDA loan
- FHA Section 203 (k)
- Local grants & programs
- VA loan
- Good neighbor next door program
- Fannie Mae
- EEM
- Direct Loan
There are many restrictions on these types of loans. For example, a VA loan is only applied to one home at a time.
FHA loans only coincide with loan duration that are longer than private and hard money lenders. Also, government loans can take a month to receive approval, making them the least attractive ways of investing in real estate with no money.
Most of the loan schemes and programs offered by governments help investors like you who want a 0% down payment loan.
For example, the Department of Agriculture in the U.S. offers this type of loan if you are dealing in rural areas.
Find out if these types of options are available and make sure you take huge advantage of them.
How to Invest in Real Estate With NO Money Plan
If you see the most successful real estate investors and tycoons, they are likely to use the methods mentioned above to structure an offer to a seller.
Usually, you will get a lot of no responses, but it’s also what successful real estate investors do to buy a property with no money.
Eventually, it will get much easier to invest in real estate with no money as you get more experience and gain more real estate.
This is because you have done proper research, have a track record, and hopefully, are successful in developing relationships with investors, lenders, sellers, and other units of the real estate market and business.
Remember, a well-planned and executed investment in real estate can bring passive income, and a long-term investment can prove its worth if the property appreciation increases over time exponentially.
You may even make this as your full-time career to begin building wealth.
An Amazing Way to Invest in Real Estate with No Money as a Flea Market Flipper
It's hard to start investing with no money, but Rob and Melissa found a way to do it.
Not with “No Money Down” investing but with a MUCH Better way. They figured out how to invest in real estate with no money buy creating a business selling the things the find for free, on eBay.
What they did was start flea market flipping of items to save enough money to buy real estate with no money. They started with a chair that was thrown away by someone else which they used to start learning how to invest in real estate with no money.
They started with one item and then turned that into $100,000 of inventory to sell to buy a rental property.
Today I have Robert and Melissa from FleaMarketFlipper.com with me, and I am so excited to talk to them.
They are going to be sharing with us how they started investing, and how they are going to continue investing, in real estate with little or no money.
Listen to the Podcast:
How to invest in real estate with no money just like Rob and Melissa.
About 10 or 15 years ago, Robert was buying houses and flipping them.
Fast forward to now, they wanted to learn how to invest in real estate with no money so they started flipping items they found for free. They started calling the business flea market flippers.
Even though they were flipping homes, they kept one of them and have it as a rental right now. They were living in the house and then bought the house across the street when they outgrew it.
They kept the first house and did long-term rentals for about five years, but last year they started renting it through Airbnb.
Robert and Melissa love real estate and flipping, because there is so much money to be made and saved. Their long-term goal is to have about ten properties that they manage.
How they started investing in real estate with no money.
They are doing a 2019 flipping challenge. Robert and Melissa walk to their downtown area, about a mile from their house, at least once a day.
They regularly look at the things people put in the trash and in the beginning of January there was a nice looking accent chair somebody was throwing away. They went home, got their truck, and picked up the chair.
The owners threw it away, because there was a little piece of wood that was broken on the underside of the chair.
It took Robert about five minutes to fix the chair and they sold it for $50 on Facebook Marketplace.
After that, they bought two exercise bikes on OfferUp with the $50 and sold them each for $500, which got them up to $1,000.
Ever since then, they have been reinvesting that money and they have never put a penny of their own into the pot.
Since January, they are now up to over $100,000 of inventory they bought with the money they made from that free chair.
They have already brought in about $11,000 of cash, but they have reinvested about $5,000 or $6,000 get up to the $100,000 inventory mark.
They want to have $150,000 in cash by the end of the year, so they can buy a rental property with the cash they made from a chair they found in the trash.
Tell us about the process of finding something, either for free or at a flea market, and flipping it. If someone was interested, how would they go about doing this?
Robert has a passion for finding undervalued items and reselling them.
The deals can come from the trash or apps online like OfferUp or Facebook Marketplace.
There are people everywhere that are getting rid of stuff for free, because they don’t want to own it anymore.
If you have your eyes open and hone your skills, you can buy items or get them for free and then turn around and make money on them.
If flea markets and yard sales are not your thing, you can sit in your chair, like Robert, and surf OfferUp or Facebook Marketplace. He scrolls through the deals, sends the seller an offer, and if they accept he picks it up, takes pictures of it, and lists it online.
They make the most money and sales on eBay, because of how big it is.
This is the best way they found how to invest in real estate with no money
Do you need to be handy or creative to do this?
It comes into play with the society we live in. You actually don’t need to know a thing, because you can use YouTube and Google to figure out how to fix things.
If there is a problem with an item, you can easily look on YouTube or Google and find someone who has the same problem that tells you how to fix it.
Not all of the stuff needs to be fixed, probably about 50 percent.
Last week, Robert and Melissa sold a commercial compressor. Robert bought three compressors for this challenge and sold one for $5,350. He originally paid $333 for it. All they did was wipe it down and list it online. They didn’t need to fix it.
Now, they are well on their way how to invest in real estate with no money.
They sold the compressor on eBay to a buyer in California. It cost Robert $315 to ship the compressor from Florida to California. It is a commercial compressor, so it is on a pallet and is about six feet wide by four feet deep, but the buyer paid the shipping cost.
Will you continue building your real estate business by what you learned how to invest in real estate with no money?
They do things a little differently. Robert finds the property he is interested in buying, goes to the property appraiser’s website, and finds who owns it.
If the owners don’t live in the house, whether it is a rental property or it is rundown, he contacts the owners directly and tries to talk them into selling him the house.
Robert has never bought a property off the MLS and none of the properties he has bought have been for sale. All of his purchases were done by talking to the owners.
This is what they will do in November. They will look at places they want to buy and Robert will do some legwork to see if he can secure a property and get into a contract with somebody.
Are you trying to save up enough money to buy the property for cash?
They want to use cash to buy their next property, and they hope to buy it for around $150,000.
Robert estimates they will be at about $400,000 to $500,000 of inventory at the end of the year. Their goal is to have $100,000 to $150,000 in cash to invest in a house.
Is this how you live? Do you have jobs outside of this?
Robert and Melissa flip items for a living.
They have been keeping the chair money separate from their other income.
They have been doing this full time for three years.
How are you going to continue to build your real estate business? Do you have any other thoughts beyond the next property?
For this year, they are focusing on one house for $150,000.
After that, probably within the next two years, they will start doing the same thing to invest in more properties.
Mistakes You Should Avoid In The Future
Robert and Melissa had another property that was close to their downtown. They bought it about six years ago and sold it two or three years later.
They wish they hadn’t sold the property.
The house needed quite a bit of work, but they wish they would have held onto it and either fixed it or bulldozed it and put another house on it.
They didn’t have the motivation to fix it up, because they had a lot of things going on in their lives and couldn’t find the time.
In their flipping job, sometimes they make mistakes, but they get back up and keep going. That is the best thing they could do.
If you own a piece of property, don’t sell it. Real estate is, by far, the way to go. There are ups and downs, but it seems like no matter what happens it always comes back. It is something you can pass down to your kids and it is a wealth-generating vehicle for your entire family.
Advice for New Flippers
The lessons you learn in life are very valuable.
Robert wouldn’t give himself any advice, other than hanging on to the property they sold.
When Robert bought the 600 square foot house, he bought it with a partner. When he bought the partner out, he had to pay a higher interest rate on the new loan. Michelle would have bought it without a partner.
It is hard to deal with partners. People are different and they have different expectations. You need to know and understand each role you have in the deal.
If you can buy a property without a partner, do it.
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How to Start Over Again
They are able to generate income off of something from the trash. It is amazing to take something and keep selling it and creating income.
If you didn’t take it, the item would be taking up space in a landfill.
Might as well try it and see if it will sell.
Most likely, it will sell. Now, for how much, that is up to the market and the buyer.
To start all over again, take something another person may value and sell it online. Then, don't spend that money. Turn it into something else you can sell to make even more money.
Just get started!
Continually Buying Properties for Cash Turning Into Long Term Cash Flow
That is what they really want to do, because it makes the whole process easier.
Everything is easier if you can use cash, instead of having something hanging over your head.
Their model is cash versus borrowing money.
There are Sacrifices to Securing Your Future.
Learning how to invest in real estate with no money is time consuming.
Robert and Melissa sacrifice a lot of sleep, because they work a lot of nights.
They spend time with the kids during the day. The kids go with them to the flea market and they are in the business with them when they are not at school.
Robert feels blessed in what they do, because they don’t answer to a boss and they get to schedule their own time. They can spend time with their kids and they are building a business.
Robert doesn’t feel like they sacrifice that much, but everything in their house is second-hand because of the business they are in. However, they have high-end appliances and nice stuff, because they are able to find good deals.
Passing On the Business and Knowledge to the Next Generation.
Their oldest child is six, so they are just getting into more responsibility and learning about money.
They just started a system where the kids do small chores and they get a couple of dollars to go to the flea market.
The kids understand that what Robert and Melissa do is work.
The kids do videos with them for their blog.
They want their kids to follow their passion and have a good work ethic so they can afford the lifestyle they want.
Anyone Can Invest In Real Estate With No Money Flipping Items
If it is what you like to do, or if it is something you are interested in, then yes.
It is a skill you can learn. Three years ago, Robert and Melissa started a course to help people figure out if it is something they would like to do and they teach the skills needed.
Robert has been flipping items since he was 16 years old. He has learned a ton of things along the way.
Who Robert and Melissa Are
Robert and Melissa have been married for almost 12 years.
They have three kids ages six, five, and three.
They enjoy water sports and going to flea markets.
Robert and Melissa both grew up near Orlando, Florida, and they love surfing, jet skis, and anything to do with water.
They also love jogging, camping, and anything outdoors.
They also wanted to learn how to invest in real estate with no money
How can listeners find you, see what you are doing, or take your course?
Go to fleamarketflipper.com
You can get a free copy of their e-book, The Beginner’s Guide to Selling on eBay, by clicking here.
Check out all of the free resources available on www.masterpassiveincome.com/resources.
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