Investing in Real Estate Without Using Your Own Money

If you have no money of your own and you still want to invest in the real estate business. Don't be disappointed. There are various innovative and created methods that you can employ to become a real estate investor even if you have no money at all. First of all you will have to become pro-active since real estate is a highly charged game. Timing is everything. When you enter the real-estate world you will come to know several people who do not invest a single penny in a deal yet they make several thousand dollars on a single deal. These people know the mechanics of the real estate business. They are also smooth talkers and great negotiators. You must train yourself f to become one of them.

There are many venues open for people who have no money but they want to invest in the real estate business. Some of them are listed below:

Assuming an existing mortgage

This kind of investment does not need a down payment of any kind. What you have to do is take-over the existing mortgage on a property. If you go for this option of real estate financing, make sure that you have taken care of the original lender who has mortgaged the property since the deal cannot go through without his approval. Also be ware that the mortgage agreement does not contain the due-on-sale clause which can give you headaches later on.

Short sale

A short sale is a great way of making money in the real estate market without down money. Let us first understand what short sale means.

When a mortgage company realizes that a certain property is going to default, it agrees to accept a slightly decreased amount for it than the actual loan amount. The reason for such clemency is that the banks do not want to go through the foreclosure process because they are very costly. What you can do is negotiate these loans that are going for short sale. Sellers usually opt for short sale when they are in urgent need of money. You have every chance of closing short sales and make good profits for yourself in the process

Flipping

Flipping means buying a home for a price lesser than its market value, getting it repaired, remodeled and refurbished - and then selling it at a profit. If you choose to flip houses, you must find a house that is situated in an area that has a high resale value.

Make an offer for the property less than its market price. Before you offer to buy a house, be sure to check that the house has strong foundations. Also check if the house needs some major repairs in which case you might lose more money on it than you are ever going to make by selling it.

After getting hold of the property use your credit card to pay for the contractor who will get the house remodeled for you. When you have completely remodeled the house, start marketing. Make the sale when you get a good offer. Don't wait for a lucrative offer. Sell the house as soon as you get a reasonable offer.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.learnrealestateinvestingblog.com/

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.