For anyone who lives paycheck to paycheck, actually owning the place they live in can seem like a pipe dream.
Even if your financial situation is comfortable, breaking into real estate is not an easy task.
There’s no way to avoid the fact that property investments aren’t cheap.
What if we told you that there was a way to buy real estate without putting down your money?
Sounds impossible, right?
There are ways to do it — you just have to know how to work the system. Read on to learn:
How to Make Your Real Estate Dreams a Reality
1) Finance with the Seller
Everything is negotiable, especially in real estate.
If you truly have your heart set on a property, see what deal you can work out with the seller.
With seller financing, you may be able to trade a down payment for higher monthly payments.
This is a good way to go if you have slim funds or if you don’t have a typical financial situation.
2) Lease to Own
If you’re currently renting, consider finding a new lease that will let you work towards owning the property.
There are some leases that allow the person renting to eventually buy the home. In those cases, the rent you’re already paying per month is also a property investment!
Note that this doesn’t work for leases you’re already in — you need to negotiate the terms of the lease-to-own agreement with the seller before signing.
3) Make sure you Have a Safety Net
You might be trying to buy property without a down payment, but you still need to have money saved.
There’s always a potential for loss. What happens if something breaks and costly repairs need to be made? What if you need to evict a tenant?
Make sure you’ve taken steps to evaluate things like your credit score, monthly cash flow, and property management skills.
Having money saved for inevitable speed bumps is a non-negotiable part of owning property.
4) Look for Investors
Maybe your property goals are bigger than a single house. If you envision yourself as a real estate entrepreneur, never forget about investors.
Think about it — the people around you are probably already investing their money in stocks, retirement accounts, things like that. Can you convince your parents to help out? What about extended family or friends?
People you know and love could want to invest in your dream to see you succeed.
If that’s not workable, you can also borrow a down payment — but make sure to find a lender with low-interest rates.
Before you completely blow your savings account, ask around.
5) Find the Best Deals Possible
This is the most important tip.
Maybe no one rents the house you want to buy, or taxes in the neighborhood spike right after you sign on the dotted line.
There’s no way to avoid the fact that buying property with no money down is risky. Make sure you’ve considered every piece of information before you buy, and work hard to find fantastic deals.
If you’re still able to afford even the worst case scenario, you can move forward with confidence.