Can You Spend No Money In Real Estate Investing?

Lots of people never venture into real estate investing because they fear they need a lot of money to invest in real estate. With so many "No money down" scams out there, others are scared of getting scammed.S
Is it possible to spend little no no money in real estate investing? Let us explore this topic in this article.

To buy real estate traditionally requires that you have cash, or get a loan, which also requires a lot of cash as down payment.
This can be too expensive especially if you are looking to do many deals.

There are a few methods of investing in real estate with little to no money:

1) Wholesale real estate investing
Wholesale real estate involves locating a cheap property then putting it under contract. Then you sell it to a real estate investor at a discount.

You can do a contract assignment to the new investor, or do a double closing where you buy and sell the property at the same closing table.

If you do a contract assignment, then the only money you need is earnest money when you put the property under contract. Typically this is between $100 to $500.

The real estate investor buyer must produce earnest money to get into the deal, meaning you do have spent no money.

In a double closing, a few things can happen. You can use your buyer's cash to close the first transaction when you buy the property. The same cash is used to close the 2nd transaction. Your profit is the difference.

In this transaction you spend no money.

In simultaneous closing, you might need transactional funding to close the first transaction. Typically hard money lenders will not need any money from you to fund such a transaction.

Again, you spend no money of your own.

2) Seller financing
Sometimes, you may negotiate with the owner so they accept monthly payments instead of all cash for the purchase.

You might have to produce some down payment to make this happen.

You then turn around and look for a buyer who will also be making monthly payments, typically higher than you make. They have to pay money down, usually higher than yours - you end up spending no money.

Such deals are owner financing, lease options, rent to own, etc.

In this case you will need the down payment to make the deal happen.

3) Partnership
You can get a money partner who finances all your real estate investing transactions. You spend no money of your own, but share profits.

4) Financing
You can finance your real estate transactions with an equity line of credit.
Even though you pay interest, you do not spend your own money.

As a successful real estate investor, you must close as many deals as possible spending little money, effort and time to increase profits. Learn how an automated real estate investing website can simplify your work and increase your profits.