Can I Invest in Real Estate Even if I Have No Money?
The easy way to put this is: yes, you can invest in real estate even if you don’t have any money on you. I am not saying that glory in the real estate world can be achieved without a single penny. All I’m saying is that even if all real estate deals involve money, it doesn’t have to be yours in the first place. Money is involved in every deal that takes place in this industry. You need to figure out a way around it. So, the deal you need to crack here is that you have to invest in without using your own money. In order to do this successfully, you need to learn the Other People’s Money (OPM) tactic. As its name suggests, you need to learn how you can strategically invest other people’s money into real estate deals and get maximum benefits. This tool is the most complex as compared to other real estate tools but its mastery will guarantee you a spot in the “million dollar club”.
Even if you don’t have money, you still have to bring something to the table. You can either use other people’s money or just bring a trade-off. This can be anything from education, experience, time to contacts in the market, due diligence or intelligence. If you look around in the real estate market, most of the investors don’t use their own money. For examples, Robert Kiyosaki once said that it is a foolish practice to use your money in the real estate market. According to him, you can always ask the bank for more money.
The Usual Ways of Investing in Real Estate:
It has been observed that investing in real estate can be done in a variety of ways. Investors at times get always with huge transactions without paying a penny. Some methods opted by investors are:
- Partnerships.
- Crowdfunding platforms.
- Wholesaling.
- Using lease option strategies.
- Bank Loans.
- Using USDA loans without down payments.
- With loans on home equity.
- Using private money.
The above list clearly depicts that not all means of investing in real estate involve your own money. You can invest in real estate without using your own money, but using other sources to fund real estate transactions can be tricky and one must be careful while going for such options.
Be Part of Real Estate Industry Without Investing:
This is the best possible strategy. If you don’t have money to invest and you are risking an investment without proper knowledge of the filed then things might not end up well. The key here is to gain some experience in the Real Estate Industry first and then go out as an investor. You can make money and learn the tricks of the trade at the same time while working in this industry. You can look at the list below to see options through which you can enter the world of real estate:
- Real Estate Agent.
- Appraiser.
- Construction Worker.
- Resident Manager.
- Title/Escrow Agent.
- Project Manager.
- House Flipper.
- Buyer’s Agent.
If you choose any of the above-listed careers you will gain more experience and it won’t require any money. These careers can be a great way to feel what this industry is like and develop a niche on the way. Remember that experience in the key and you don’t have to risk your financial stability by making rash decisions about investments.
To conclude, you can jump into the real estate market without any cash. The best possible way might be to go to the bank and ask for money. Or you can take the longer and less risky path as an investor and start as a student of this industry.