Buying real estate with no cash and no credit can be done many ways. Lease options and subject to existing financing are two of my preferred methods. However, these are not the only ways. Other ways of buying real estate with no cash or credit include:
- Seller financing
- Low down payment loans with other peoples money
- Using USDA or VA no-down payment loans
- Working with partners
- With home equity loans or lines of credit
- Using private/hard money.
- Combining two or more of these strategies
Buying real estate with other people's money doesn't mean there is no money involved. It means you don't have any money involved.
Secrets to Buying Real Estate With Other People's Money
One thing you need to face when buying real estate with other people's money is that you do need to bring something to the table. It could be your knowledge about real estate investing, it could be the great deal that you have under contract, it might be your ability to project manage a flip, or something else.
Something is a bit ironic and a challenging to buying real estate using other people's money is there are two opposing forces working against each other. In a down market, such as the one we recently came out of, it becomes very easy to find distressed properties and motivated sellers offering incredible investment opportunities. However, other people's money becomes scarce when they perceive the risks are too high. On the other hand, when the market is strong, money is much more available but the great deals are more difficult to come by.
Buying Real Estate From Motivated Sellers is Today's Secret
Just because great deals are a little more difficult to find today doesn't mean they are impossible. You won't have trouble finding money for buying real estate in today's market. Where most of your effort should be is in finding motivated sellers. Here are a few key places you want to look:
- Buying real estate from out of town sellers
- Empty houses / abandoned properties
- Following up on death notices
- Bandit signs in neighborhoods you want to invest in
- Buying real estate by searching MLS expired listings
- Contact landlords evicting a tenant
Now is the time to make the extra effort to find these motivated sellers because other people's money is available. You'll be building relationships with these people during the good times. We all know the best time for buying real estate is at the bottom of the cycle. Building relationships today means having them in place the next time the market cycles down and buying real estate is at its best right now!
For more information about options on real estate, and buying real estate in general, visit my NuWire Lease Option Expert Page.