How To Get A House With No Money Down

How To Get A House With No Money Down – We all know that it takes money to make money. And especially with real estate investing, it’s almost impossible to get started with less than a 20 percent down payment and a big pile of cash.

It’s definitely easier to get started in real estate if you have money. And if you want to achieve financial freedom as quickly as possible, you need to save a lot of money.

How To Get A House With No Money Down

But the truth is that in any business—including real estate investing—everyday entrepreneurs start with little money. Most of them start with just having a strong dream and using a lot of movement.

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How can I know? Because that’s what I did! And I have taught and trained others who have done the same.

Below you will find 15 different ways to get started as a real estate investor with little or no money. You can continue by clicking on the link for each strategy.

Real Estate is I.D.E.A.L. Investing has many benefits. When you own an investment, you earn from income, value, equity building, appreciation and leverage.

And I also like that investing in real estate is a hybrid between a small business and pure investment. Although not always easy, starting and starting a real estate investment business is possible.

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So as your business grows, you can lock in your investment income for the rest of your life. And that means work becomes optional and you can do what matters most with your time.

One of my favorite ways to start investing in real estate is house hacking. This usually means finding a way to generate rental income from your home.

A classic house hack is moving into a small multi-unit property, such as a duplex, triplex, or 4-plex. You then rent out the additional unit for income.

You can also get creative by renting out an extra room to a roommate, renting out a basement apartment or guest house, or even renting out extra space on your property in an RV (if your local laws allow it).

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And all of this can be started with little money because you can get owner-occupant financing to buy a property. Here are some loan programs with small payouts that you can use for home equity financing:

For example, on a $200,000 property, that means you could put $0 to $7,000 down with some of these programs!

Let’s take an example. Let’s say you rent a 3-bedroom apartment for $1,500 per month. You find two roommates who each pay $600/month for a total of $1,200/month. In this example your rent contribution is only $300 per month. Month ($1,500 – $1,200)!

And like most leases, a master lease can often be negotiated with a very small down payment — perhaps a security deposit, prepaid rent, or an offer to do some repairs.

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And while in some cases, master leasing alone may be sufficient, you can also try to negotiate what’s called a purchase option. It gives you the right to buy the property at a fixed price for a certain period of time.

For example, you could negotiate an option price of $175,000 for the apartment in the previous example for a 3-year period. If the value reaches $200,000 during that time, you can buy the property to hold onto it, or you can flip it for someone else’s profit.

One of the best ways to get into flipping is by flipping your home. This technique is called “Live-In Flip”. It benefits from one of the most profitable tax laws in the United States.

It works by buying a home, moving in and living there for at least 2 to 5 years. You can then sell the home at a profit and pay no taxes on up to $250,000 as an individual or $500,000 as a married couple filing jointly.

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That’s a huge amount of tax-free profit! How long do you have to work to earn that much money?

And like any strategy, it doesn’t come without work and risk. But since you live in the house, you can reduce your risk by taking your time on repairs and waiting for the right time to sell.

You can also use the same low down payment loan programs for Live-In Flips that I described in the home hacking example.

My friends Carl and Mindy Jensen used Live-In House Flips to build hundreds of thousands of dollars in net worth early in their working careers. They then invested and grew this nest egg to over $2 million, allowing them to retire in their early 40s.

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>> Want to know more about Carl and Mindy’s story at Live-In Phillips? See Get Rich With Live-In Flip <<

The Live-In-Then-Rent strategy is a close cousin to home hacking. Basically, you move into a house, prepare it for rent, and then keep it as a rental for later when you move out.

For this strategy to work, you need to buy a more modest home that will also work financially as a rental.

Like home hacking, you can take advantage of small installment loans for homeowners. But unlike a home hack, you don’t have to live next door to your tenants!

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And since a house is usually larger than an apartment, it makes this strategy more useful for people with families.

If you do just 3 or 4 Live-In-Then-Rent-properties, you will have a great rental portfolio for many years to come.

Real estate crowdfunding is a relatively new approach in the world of real estate investing. It allows you to invest a small amount (such as $1,000 to $5,000) with a group of other investors (ie, the crowd).

These crowdfunded investments can be rental properties (usually large multi-unit properties) or loans (ie, hard money loans) to other real estate investors.

How To Buy A House With No Money Down

I myself have been experimenting with this technique for several years. But since the legal structure and the companies are still new, I’m still a bit cautious.

For example, my business partner had money in a company called RealtyShares, and they closed most of their business last year. No money was lost (yet!), but it does show the risk of investing in cash-strapped startups.

So this means that while I like the overall concept, I keep my investments to a relatively small percentage of my net worth, and I currently diversify between different companies.

* These may be affiliate links, meaning my site earns a small commission (at your cost) if you use their service. Thank you!*

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In these special cases, you must be an accredited investor. This means you must have a net worth of more than $1 million (not including your home) and/or an annual income of more than $200,000 for the last two years (or $300,000 for a couple).

There are other crowdfunding platforms like Fundrise.com that do not require you to be certified. But the investment style is a bit different and more like a REIT – which I’ll talk about next.

Real estate investment trusts (ie, REITs) are very similar to mutual funds. When you buy shares in a REIT, you own a small piece of a lot of commercial, income-producing real estate. A team of managers selects and oversees REIT investments.

Like real estate crowdfunding, REITs are a truly passive investment when you buy them. But unlike crowdfunding, shares in a REIT are highly liquid — meaning you can quickly sell them (like stocks or mutual funds) to raise money.

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REITs are not my specialty and they are not something I personally invest in. But you can get a good introduction to REITs by knowing where REITs belong in a portfolio and when is the right time to REIT?

Airbnb is a mega-online marketplace that lets you rent out your home (or part of your home) for short periods of time. And you can use it as an inexpensive way to get into real estate investing.

My husband and I regularly stay in Airbnb apartments when we travel because we love our kitchen and bedroom. And we recently decided to host by converting our basement apartment into a short-term rental that generates additional income.

For many of you, this technique may be a special home hacking method where you generate income from your home or part of your home. But you can also grow it into a real business that generates a part-time or full-time income.

Ways To Start Investing In Real Estate With Little Or No Money

>> Do you want to become an Airbnb property investor? Listen to this BiggerPockets Podcast episode with Zeona McIntyre, who uses short-term rentals to retire early. <<

When you don’t have money for real estate investing, you can still start using money from a partner.

Although there are many forms of partnership, one of the simplest is called a credit partnership. It basically works like this:

Using your brain and your speed

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