Investing With No Money: Not a Typical Advice For a Beginner?

FinanceTrading / Investing

  • Author Claud Pearce
  • Published November 27, 2011
  • Word count 533

Have you thought about investing, but still wondering because you have no idea how to get started with no cash? No matter what the real estate market looks like, there are numerous ways for making money.Making millions out of nothing might be the correct metaphor, but this statement is not far from the truth. But it will be easier to start with a working capital and a sensible amount of expenses for marketing in the first few months for those who urgently wants to go into real estate investing.

Still, there are many investing opportunities with little money involved especially if you will look into flipping properties through contract flipping or wholesaling. Using transactional funding is one way of financing the purchase price on properties. But if you are investing with just a small amount of money or investing with no money at all, you have to know that there's a thin line for error and making mistakes is one of things that should be avoided.

While investing with fast money strategies can help easily boost the business, a good real estate education and a cautious approach is a wise move. Investing with no money is not a typical advice for a beginner. If you have other financial responsibilities, it is not advisable to invest your last cent in real estate. Do not force yourself and do not rely on getting "lucky". These are the common mistakes most people do and many get hurt when the bubble dream bursts.

The lax standards for lending have opened doors for people who decide to go into real estate and who are investing with no money. The stated income loans where the bank take "your word for what you earn" and will release the loan based on the income you have declared is one of the known methods used. And this has allowed real estate investors to obtain a property without spending a single cent of their own money.

There are loop holes in this method, but it have been dealt into with today’s regulations. Options are still available for those who wants to try investing with no money but you may it may not be easy if one has an outstanding credit performance and some assets to qualify for a loan.

There is another method that will not take your money and will not necessitate hustle. All you have to do is bargain purchases for homes sharply under the property’s fair market value. Then, you can turn around and vend your position to another real estate investor once the contract is secured with the property owner. This is what we call "wholesaling in real estate investing circle". This is one of the more resourceful investing strategies available for confident investors.

Remember to set your eyes on the goal. Whether it is a house or a wholesale property, you have to focus on what you are investing for. Be sure to get equipped with right tools, right real estate education, and right strategy, you will find real estate is a good business in building a lasting wealth and a source for a noteworthy income that will last you through or beyond retirement age.

Claud Pearce is an active real estate investor based in Cincinnati, Ohio. He is a member of the Greater Cincinnati Real Estate Investors Association and works exclusively with investors who want to grow, learn and succeed at real estate investing. Get more information now at http://www.cincinnatireia.com.

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