26 Oct How to Buy Property with No Money
So you want to invest in real estate but don’t want to take money out of your IRA to do it. That’s okay! You don’t have to have a ton of cash available to start investing in real estate. You can learn how to buy property with no money even!
Now, you may be asking, “Why would someone sell me a house without any money down?” And there are many answers to that question. But, the truth is, it happens all the time. You just need to be let in on the secret that so many real estate investors use.
The Assign Out
How to buy a property with no money is a common question we get, and one of the answers is through the Assign Out. This deal is essentially a lease purchase, where you act as the middleman.
Keep in mind that this isn’t our favorite strategy to use, but it is available and highly effective.
With an Assign Out, what happens is you create a lease purchase agreement with the seller, but the seller controls the property for the entire lease term. Once the lease agreement is complete, you are within your right as the buyer to find another buyer for the property.
As soon as you have discovered a new buyer, you turn the new buyer over to the seller to negotiate the terms of purchase together. With this method, because you found the buyer, you can get paid an assignment fee.
After that, your role in the transaction is complete and you can walk away with your assignment fee in hand — whether the seller ultimately cashes out or not.
We prefer making deals another way because the seller often gets paid much better than we do on AOs. But, that’s also one of the reasons this is a great option for investors who don’t have a lot of liquid assets. It’s a deal that many sellers will consider because they make more money. Plus, it’s a low-risk way for new investors to start making money.
We are constantly creating new content and adding real estate strategies to our portfolio. If you would like to learn more about the Assign Out, be sure to read our free ebook, where we go in-depth on how an Assign Out works and how you can invest using different strategies, even when you don’t have money. To get your copy, click here.
Investing in Propterty With No Money
Many of our students come to us wanting to invest in real estate but without a lot of money in the bank to invest. They still want to know how to buy property with no money. Not having a lot of cash shouldn’t be a reason not to start your real estate investments.
There are many ways you can invest in real estate with little to no money and without leveraging your credit score. With our methods, you can start investing in real estate to help create the long-term wealth you have always dreamed of, even if you didn’t think you could.
One of the methods we use to start investing is the Sandwich Lease.
A Sandwich Lease gives us the right to sell the property. Usually, we do this with a lease purchase so that we can start collecting monthly payments immediately. This is an excellent method to use when you want to control the lease purchase agreement you have with the seller.
The investor (you) has a lease purchase agreement with the seller in a deal like this. For example, you might have a deal where you buy the home on a 24-month lease with monthly payments of $900 a month and a total cost of $100,000.
Once you have the lease agreement in place, you find a buyer looking for a lease purchase, so you sell them the property for $125,000 with monthly payments of $1,200 a month on a 24-month lease term.
In this scenario, you are still making the $900 a month payments to the original seller, but those payments are covered by the $1,200 a month you’re getting from your seller, and you’re pocketing $300 a month in profits for your first payday!
With a lease agreement like this, you’re guaranteed an extra $300 a month, which you can put towards another real estate investment or spend as you like. Plus, when the whole deal is done, you will have made $25,000. That’s a 25% return on your initial investment!
Learn more about how to buy property with no money by checking out our YouTube Channel.
Don’t forget! Get your free copy of our Real Estate Investor’s Blueprint. Just fill out the form to the right and we’ll email you our step-by-step guide to getting into investing and owning more homes without using your cash or credit.