Can you invest in real estate with no money? The answer is No. Contrary to what you may have heard, when investing in real estate you have to have money or at least access to money. There is no such thing as buying real estate with no money. The good news is it doesn’t have to be your own money and this is why real estate is such an attractive business and investment. So as an investor, you need to make sure you have access to good sources of capital regardless if you are a new investor or a seasoned investor. Having sources of money will also make working with real estate agents much easier and will give them more incentive and motivation to help you find deals.
Start with a mortgage broker, as opposed to your local bank. A mortgage broker is going to be more for investor-friendly and will have access to a much broader range of investment loan products. Don’t stop there. You also want to have relationships with hard-money lenders. These lenders provide short-term financing primarily for rehab projects. They work significantly different than traditional lenders in terms of how they value projects and how they determine lending limits. You will find them much more flexible than traditional lenders. Lastly, you should always be forging relationships with other investors and other private parties that may be interested in investing in your projects or partnering with you on your deals. Real estate investment clubs are a great place to meet these people.
The last thing you want to have happen is to spend value time and energy looking for deals and then have the deals fall apart because of lack capital and funding.
Posted by Carter Brown
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