Are you an investor who is looking for no money down property investing options? Being able to invest in property without having to provide a hefty deposit sounds like a pipe dream – but is it possible?
Getting something for nothing these days seems unlikely, but there are some ways that you can purchase your first investment property with no money down.
Usually, you would have to provide at least some of your own money in the form of a deposit when securing a mortgage. Banks ask for a percentage of the total amount upfront – anywhere between 5% and 30% of the property’s sale price.
If you don’t want to get a loan or mortgage, you could always try saving up the money needed to invest in property (or inherit it from a long-lost rich relative) but this would take a long time indeed.
All of these methods are completely ethical and legitimate – no dodgy stuff or under-the-table dealings necessary. You, too, can become a property investor with no money down, and be 100% above board.
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Here are some ways that you can get into no money down property investing:
1. Get A 100% Mortgage From The Bank
This might seem crazy, but it is possible. Some banks offer what’s called a guarantor mortgage, where a business partner, member of your family or close friend agrees to be a guarantor for the loan.
This strategy is not without risk, but it does enable you to access funds for property investment without having to stump up a deposit.
Other types of mortgages offer 100% funds without a deposit, such as a Joint Borrower Sole Proprietor Mortgage. This is where you borrow money in partnership with up to four other people, but only one person actually takes ownership of the property.
The other people in the partnership are liable to cover the repayments if you cannot make them, so bear this in mind.
2. Start A Property Joint Venture
You might not have the cash to put up for a deposit, but you know what you do have? Connections, time, knowledge, expertise, and top-notch negotiation skills.
You can be the boots on the ground, finding and managing properties while your partner supplies the funds. Consider partnering with someone who has money to invest, but is lacking in these things.
This is how many property investment partnerships start off and with some luck and a positive mental attitude, who knows where it could take you?
3. Network, Network, Network
We’ve all heard the old adage – it’s not what you know, it’s who you know. And having the right contacts can help you get into the world of no money down investment property.
Go to local networking events, meet new people in the property world, and develop relationships with those who can help you on your journey towards no money down investment property.
You could even find a mentor, someone who is where you want to be in 10 years’ time. Be receptive to their advice and cultivate a close relationship with them.
Look out for people who are looking for an investment opportunity, but aren’t sure where to start. Impress them with your knowledge of the property investment industry and show them that you can help them make a profit – while adding on a commission for yourself, of course.
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4. Get Into Property Deal Sourcing And Packaging
This is some real insider knowledge right here – not many people know what deal packaging even is! But it’s something that you can leverage to your advantage with just a little time invested in learning.
Property sourcing and deal packaging are where you basically act as a middleman for individuals or organisations who are looking to invest in the property market. The thing is, they don’t have the time or skills to do it themselves. That’s where you come in.
The first step is to conduct research into the property market and identify good deals. Develop good relationships with local estate agents, check out property auctions, and look out for public notices about foreclosed-on properties.
Then, it’s time to start negotiating. Getting the best deal possible is where your expertise and confidence come in. Once a price has been agreed on, you can move into the deal packaging phase.
Present it to your client in a favourable way, showing the potential returns on their investment in financial projections. This package should include a commission for all your hard work.
Deal packaging is such a great way to make some extra cash for yourself and get into property investment without having to provide money upfront. You can learn more about this no money down property investing strategy at one of Assets For Life’s upcoming free property events.
5. Develop A Positive Mindset
You might not realise it, but this is actually the most important tip we can give you. Having in-depth property knowledge, good industry connections, and even a benevolent millionaire uncle isn’t going to help you if you don’t have that all-important positive mental attitude.
Think about this. If someone asks you to point out all the red-coloured things you can see in the room right now, you will start off with a couple, and gradually start noticing more and more. It almost becomes like second nature to spot those red things.
This is how positive people are with opportunities. Negative people only see the downsides, the risks, and the potential pitfalls, and have already given up mentally before they even start.
By cultivating the mindset of a winner, a lucky person, one who rolls with the punches and gets back up to try again, you will only succeed!
We wish you the best of luck with your journey into no money down property investing – remember, always be on the lookout for below-market-value properties, keep on cultivating those professional relationships with potential business partners, and above all, work on your mindset.
Before You Go
As mentioned previously, networking and having access to accurate, up-to-date information is crucial to succeeding with no money down property investing.
Thankfully property training companies like Assets For Life provide expert property education and networking opportunities for both new and seasoned investors, helping them to thrive when it comes to no money down investment property. You can find out more about their upcoming free online and in-person training here.
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Laura Whitehead is a UK-based copywriter with a background in art and design. After working in marketing for several years, Laura made the leap to self-employment and is a freelance copywriter and content creator.
When she is not working, she can be found gardening at home or growing vegetables with varying levels of success at the allotment, playing video games, or hanging out with her dog.