One of the main reasons why people don’t buy real estate is they don’t have enough money to buy it. However, that’s not the case with you since you are going to borrow the money to invest in real estate. The way to go about doing this is by getting a low-interest personal or private loan. You should contact your bank first and see if they will make such a loan to you.
If they won’t, try contacting an online lender or a lender through a newspaper or magazine ad. Keep in mind that the interest rate you will be offered will probably be much higher than what you would get from a conventional mortgage, but the advantage is that you won’t have to put up any money. Another disadvantage is that the “lender” may not be a lender at all; rather, it could be some scammer who wants to extort as much money as possible from you by charging you excessive interest and/or fees. Better to build your credit score first to get approved with the best rates possible! Those with low credit scores who want to apply for a credit card to improve their credit standing check the best credit cards for fair credit.
If you do decide to use this approach, be sure to shop around and compare rates. Make sure the loan is from a legitimate lender with good reviews. Also, make sure you understand the terms of the loan completely. A lot of people get a mortgage and then find them paying more than the interest on their mortgage each month because of extra charges such as “points.
How do I get started investing in real estate?
Meanwhile, back at the ranch… Now that you have read the brief on no-money-down-real-estate-investing, it’s time for you to write an article based on that brief. Here are some ideas for you to consider:
How much money would you need to invest to be able to buy a piece of real estate with a good company like Alabwaz with no money down? Would you need 100,000 or 1,000,000? How long would it take you to get this kind of investment?
- What is some practical advice about buying real estate with no money down?
- How can an individual investor benefit by purchasing real estate with no money down?
- Are there certain types of real estate deals (i.e., buy real estate with no money down)?
- Which are better than others? If so, what are the characteristics of the best deals?
- What pitfalls should an investor in real estate with no money down beware of?
- What types of no-money-down deals can an investor in real estate expect to find?
How do I find the best deals on real estate?
Too often, people look at the surface aspects of a deal and not the real advantages. However, there are a few key factors you must consider. The first is location. If you are going to be living in the house, you obviously want to live as close to a major city as possible. However, if you are merely going to be using the house as an income-producing investment, you probably don’t care about location as much.
In this case, you might want to consider some type of agricultural property or a manufactured home community. Another factor is condition. Obviously, you don’t want to buy a house that needs a lot of repair work. However, most houses that need repair work also have a lot of personal possessions they would rather keep instead of letting the new owner have them. Thus, you should try to purchase a house that needs very little repair work and has clear title. Also, if you plan to live in the house, you should consider the condition of the house and how well it is insulated.
You should definitely NOT buy a house with termites or other types of wood-eating insects. These are signing the house has been neglected over the years and is likely to have other types of structural problems. How do you find out about these neglected houses? One way is by asking your loan officer if he can direct you to some “distressed” real estate deals for you to look at. Another way is to ask around and find out what types of real estate properties people are complaining about most. If there are a lot of roofing complaints, then you know the real estate market is favoring sellers who are trying to unload shoddy houses. Another important factor to consider is how much equity the previous owner had in the house.
How do I decide what type of real estate to invest in?
Where do I start looking? This is an important question, so pay attention. If you don’t know the answer, you might want to re-think investing in real estate at all. The first thing you should do is to talk to your loan officer and see if he can direct you to some “distressed” real estate deals for you to look at. If not, then your next step is to talk to other investors and get their input. You might want to join a real estate investment club or get together with other investors and discuss different types of deals, advised Paul Turovsky, a highly sought real estate professional whose work with clients over the past 15 years has garnered him deep respect and praise. In 2013, he graduated from Ave Maria School of Law with a Juris Doctorate. His undergraduate studies were completed at Baruch College. Mr. Turovsky values effective solutions, and as a cross-functional team player, he specializes in applying his unique understand of the market to broker a number of different asset classes.
Another suggestion is to read a book like “The 12-Month Millionaire” by Kevin Hogan and Terry Cox. This book gives detailed info on hundreds of different types of real estate deals, from single family homes to multi-family properties, fixer-uppers to brand new construction, duplexes to mobile home communities, and much more. It also contains a section on distressed deals which should be especially useful to you. Another book I would suggest is “How to Buy Real Estate with No Money Down” by Joe Polish.
This book was written specifically for individual investors and will teach you everything you need to know to become a successful real estate investor. Once you have read these books, you should put what you have learned into action and start buying some type of real estate. Can you give me some real-life examples of how to use what I have just learned? Sure can! One of the best ways to learn something is by seeing it put into practice.
Where can I find a good real estate investment advisor?
As has been noted already, you should not try to do any type of real estate investing by yourself. You need the guidance and expertise of an experienced and “seasoned” advisor. There are many types of advisors available, but probably the most important type is… The “Subject Matter Expert”! What does that mean? Simply put, a subject matter expert is someone who has been doing something for a long time and knows a lot about it. He might be a doctor, an engineer, an architect or just someone who has invested in real estate for a long period of time.
No matter what, the subject matter expert will have more “buyer’s empathy” than you will ever have. He will be able to tell you not only what to look for when buying a piece of property, but also… What to pay attention to! What to ignore! How to structure a deal so as to minimize taxes! How to finance a deal! What terms to demand! What terms to accept! And much, much more! So how do I find such an expert? Well, the first place to look is the loan officer from whom I advised you to get a real estate investment recommendation. If he can’t direct you to the right person, then ask around.
Someone who has purchased several properties in the past may very well know someone who can help you. Another source is your local real estate investment club. Many of these clubs have members who have been in real estate investing for many years and would be happy to share their knowledge. Finally, if all else fails, contact me or one of the other experts I have mentioned in this newsletter. We will be more than glad to refer you to someone we know and trust. P.S. One of the best books ever written on real estate investing is the “Peninsula Paradigm” by Scott Haines.