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A lot of people think that they need a ton of money to start investing in real estate.
In reality, you can do real estate deals without any of your own money by strategically partnering with other people!
In one of my earliest flips, we found a home owner who was willing to sell her home to us off market. The numbers didn't quite make sense to us at her asking price, so we had to think of a creative solution.
She was an out-of-area landlord and couldn't renovate the property herself.
We ended up partnering with the her so that we would pay for all of the renovations up front. She would own the home and continue making the payments for the mortgage, property taxes, insurance, and utilities.
Our agreement was that at the sale of the property, we would get paid back a fixed amount for the money we put into the deal, plus a project management fee for assuming the risk.
We also agreed to split any profits if the sale price of the home hit above a certain threshold. This was an incentive for us to do the best job and get it sold for the highest price possible.
Meanwhile, we brought a similar plan up to our general contractor. Since he was part of the deal, we told him to do the job at cost and to pay for the labor and materials up front. We would reimburse him for his payments when we sell the house and would split our profits with him 50/50.
By structuring the deal this way, we dramatically lowered the costs of the project and we didn't need to bring any of our own money to the table because the home owner and the contractor paid for everything.
Because of our creative deal structuring, everyone was able to win and make money from this project!
If you're worried that you can't invest in real estate without any money, try being creative instead!
Follow @seanlovesrealestate for more real estate tips!
P.S. If you want to learn how to invest in your first out of state rental property, check out our course "Remote Rental Riches" Link in bio
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By: Sean Pan Title: 📈How to invest with no money! #realestatehacks #nomoneyspent #realestateinvestor #investing Sourced From: www.youtube.com/watch?v=VA482unT4-8
