Can I Invest In Real Estate With No Money Or Credit?

By Author: Otto Ruebsamen
Total Articles: 136
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The rule of thumb is that in order to invest in real estate you need money or credit. There are ways to turn this to your advantage with no out of pocket expenses. Lenders will offer you credit without you having to secure any funds of your own if you have good to excellent credit. If your credit is not so favorable then you can still get the lending needed if you can show proof of cash in the bank or even a 401K.

The hardest thing for new investors is to maintain some restraint when they make their first deal. Once you have fulfilled the requirements, secured your loan, and turned a profit on the property that profit should remain in the bank for the next transaction. You will find that it becomes easier each time and with the money in the bank the banks are more likely to compete for your business and give you better rates.

If you are in a situation starting out where you do not have cash or credit and still wish to invest in real estate there are some great systems that show you how to invest using hard money lenders. Hard money lenders do not care about your credit, they only look at the property being their ...
... security, and if you do not pay on the loan then they know they can turn the profit by selling it themselves. Of course you will be ruining your already damaged credit further and if the lender cannot get back from the property what they loaned you; you will have additional money added to credit report that you owe.

In most cases these hard lenders will only loan a percentage of the properties renovated value, usually around 65% for the good ones.

This simply means that if you find a home that is valued at $100,000 once fixed up and it is on the market for only $60,000 then you can expect the lender to give you $65,000. This gets you a property at no money down and also an extra $5000 to go towards repairs or to be used for closing costs.

These types of loans will close quickly, usually in 7 days but will carry higher fees. You can turn the property over to an investor and make a quick profit or renovate it yourself for a larger profit.

Flipping a property is a great way to turn profits and with the ability to own them, rehab them and sometimes with little to no money of your own, what a great concept. You may find that the only real problem to this scenario is the appraiser, getting him to realize that your $100,000 you bought a month ago is today worth $130,000 may present a situation where you have to obtain several appraisals to increase the property's value.

In today's economy is a great time to find properties that are well below their market value and need little to no work in reselling them. The ability to own properties in this manner can leave you in a great position for creating wealth through rental properties or rehabbing properties.
Otto Ruebsamen is best known for his automation skills in automating investor
businesses to do more revenue while slashing working hours. To get your FREE CD "The 7 Golden Keys To Skyrocket Your Income and Automate Your Business For More Free Time and More Life" Go to www.7KeysToAutomating.com right now.