If you don’t have cash but are very much interested to invest in real estate, you might be wondering if there are other ways. Read this blog post to find out 3 “Pro” Secrets – How to Compete Without Cash. Yes! You read that right, you can still do deals without cash… Let’s find out more about it!
Real estate investing is the best way to break free of the difficulties of Wall Street investments, get out of that pointless pursuit, and start building your financial future.
However, most people in real estate investing think that they’re only as good as their access to capital. that without money, the wouldn’t be able to invest. They don’t really know that they still have options. Luckily, we have 3 secrets that the pros use when they want to compete without cash
#1. Seller Financing
Most people choose to buy a house outright from the seller by cash. It’s like handing over the money in cold cash so they can hand over the keys to you. However, there is an alternative way to do this. There’s what we call the seller financing terms, which many investors use. It works like a mortgage without a bank!
The homeowner hands over the keys and you pay them a regular monthly payment until the house is paid off. Sellers often choose this because they get to have a regular income… you just have to ask them because not everyone that this option is actually available.
Here’s another unique strategy that can work – you can barter. Let’s say you have an ongoing negotiation with a seller who wants to downsize so they can retire. You don’t really have to pay them in cold cash if you don’t have it. You can provide them a different option. Let’s say, you have a small apartment building, they might choose to move into that and the money you will pay them can just go towards their monthly rent. Or, maybe you have money but it is not enough to cover the entire cost of the house. Maybe you can help them move and clean up or fix up their new house.
There are many different services that you can barter with sellers, you just have to observe, listen and ask them what they want.
#3. Partner With Others
The most powerful strategy is to partner with others and use a concept called “Other People’s Money” (OPM). This is how it works: you find the deal and then you find someone who has money and wants to invest. Then you act as a “middleman” to help them acquire the deal. You work out the terms so you benefit too. For example, they might own the asset but the two of you split any rental income earned from the property.
Using just these three strategies, many investors have discovered how to compete without cash. It’s easier and more common than you think!