Anyone can invest in real estate with little or no money.
And yes, some of you can even generate enough money to pay any debts receive from loans using your credit score in just a year.
Don’t believe me?
Our recent data shows that 75% of real estate investors used loans to create wealth by building on their credit scores.
Above is an example of real estate investors who are also using crowdfunding to raise money to invest in real estate.
While you are probably not going to reach your desired amount so quickly depending on how your crowdfunding campaigns are run and how good it is to persuade investors.
But after a few times of trials and errors, you can finally figure out the secret to running a successful crowdfunding campaign that would generate money for your real estate investment.
If so, here are a few ways to invest in real estate with no or little money.
Work with investors
To begin with, you have to start with the idea of working with an investor.
The reason is simple.
You don’t have the capital, but they do and they can consider your approach persuasive enough to invest in it.
Keep in mind, if you want to embark on this kind of strategy, you need to set up a rule in the deal.
For instance, some real estate investors might want to invest for a share profit of 60%, which means for every profit in the business they seal a 60% income in it.
An article on Linkedin, said something interesting about investors, An investor puts money into an investment with the hope that they will get a return on this capital.
They sit back in a passive role and allow you to run the day-to-day operations.
They may from time to time, get updated on how the investment is doing. They have every right to know if their money is getting put to good use and if their investment is growing.
Do you know why this is a great option?
The great thing is that it is on percentage share, you are like the vehicle of the company, you are running the business and making exceptional things happen.
While the investor is waiting for the outcome of the profit data which makes both parties make money from every deal close based on the initial agreement.
This is just a cool way to kickstart your real estate career.
But one thing I will advise you is to have an indepth knowledge of the industry and how you wish to grow the capital.
Because there’s no way a real investor will want to invest without knowing the blueprint of what you want to do and why you want to do it.
Try wholesaling
What is real estate Wholesaling?
Real estate wholesaling is the act of selling a property for more than you paid for it. It’s also the process of finding a buyer and getting them to purchase your house at that price point.
If you decide to become a real estate investor, wholesaling may be one of your best options.
To understand this, there are two main types of wholesalers:
- Investors
- Agents
In this case…
Agents are licensed by state governments and can help you find potential clients who are interested in buying houses from other people.
One good thing is that they know how much money they need to make on each sale so they can help guide them toward properties that will sell quickly(and thus maximize profits).
Investors, on the other hand, don’t need any licenses or certifications but instead focus solely on finding properties themselves through their own research efforts before approaching buyers directly.
These kinds of individuals often work together as teams where one person handles researching properties while another one deals directly with potential buyers.
Sweet, right?
Offer to partner on deals
According to the same Linkedin article, they said, a partner is someone who may invest either capital or time for ownership. This person should be expected to move the company forward.
The challenge many partners face is that they can’t figure out or don’t want to figure out how they fit into the company.
That said.
When you’re looking to partner with someone, it’s important to find a partner who has the same goals as you.
For example, if your goal is to buy a home and invest in real estate with no money, then finding someone who shares your same goals is essential.
You can also find partners by looking online or at local events where like-minded people gather together. You could even post on social media that you are looking for investors or collaborators(this will help make sure everyone knows about it).
These days there are many platforms where people can find like-minded individuals: Facebook groups, Instagram groups, and the list goes on.
Once you’ve identified potential partners, it’s time for negotiations.
Before making any deals though—make sure both parties understand what each other expects from the arrangement before proceeding further into negotiations.
Start investing in REITs
One of the easiest ways to invest in real estate without using your own money is through REITs.
REITs are publicly traded companies that own a wide variety of real estate, including apartment buildings, shopping centers, and office complexes.
The most common kind of REIT is an investment trust (or “REIT”).
These types of companies issue shares on stock exchanges across the country.
You can buy them through an online broker or directly from their website; they’ll send you a confirmation letter when they’ve received payment and will send you monthly statements showing how much money was invested in that particular fund over time as well as how much dividends were paid out from it during its performance period(the time frame during which it earned its profits).
Use seller financing
What is seller financing?
Seller financing is when the seller of a property provides financing to the buyer.
This can be a good way to invest in real estate with no money because it’s usually more affordable than traditional loan options, and you won’t have to worry about paying back your initial investment until after you’ve moved into your new home. Before deciding whether seller financing is right for you, make sure that:
- Your down payment will cover at least half of what your monthly mortgage payments will cost over time(not including taxes or insurance).
- Your lender has experience working with sellers and buyers on deals this size.
Earn a referral fee
Here’s how this works.
If you’re willing to put in the time and effort, it is possible to earn a referral fee for referring someone else to invest in real estate.
The amount varies depending on how much you refer people, if you are in Nigeria it can range from 500,000 Naira upward per lead.
Find investing partners
Finding a great partner to help you buy and sell investment properties can be one of the best ways to make money on your real estate ventures.
You need someone who shares your passion for buying, selling, and managing properties, but also has the financial resources that you lack(i.e., lots of cash).
A good partner will provide advice about finding deals, negotiating contracts, or giving advice about how to improve your business plan through marketing strategies.
Crowdfund your investment
Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.
However, It can be used to raise money for a new business, a charity, or even just for personal issues.
It’s different from traditional fundraising because instead of soliciting donations from family and friends alone(which can take months), you collect pledges from strangers all over the world who want to support your cause in exchange for goods or services that are promising at some point in the future.
Become a property manager
If you want to become a property manager, this is a great way to start investing in real estate without having to commit any money.
Property managers are an essential part of the rental housing industry, and they’re responsible for keeping tenants happy with their homes while maximizing profits for landlords.
A newbie can start out by finding an experienced property manager who will train them on how to run their own sites and manage rentals themselves.
Once you’ve gained enough experience, it’s time to move into management yourself.
As with any other form of self-employment, there are many benefits associated with owning your own rental property, something like:
- Flexible schedules
- More control over where you live
- Higher earnings potential than working at an office job(plus low overhead costs).
But perhaps most importantly:
No more waking up early just so long as you have enough CLOSING DEALS coming in each month which is great to start your real estate career with no money and with no risk.
Conclusion
Real estate investing is an excellent way to build your financial independence and wealth over time.
You don’t need to break the bank before you can become a successful investor in Nigeria or any part of the world.
To be successful, however, you’ll only need to know how to leverage your skill set for maximum returns.
Whether it is
- Leadership skills
- Management skills