©Grant Cardone
If you’re interested in real estate investing, you might be discouraged because of a lack of financial resources. However, according to Grant Cardone, author of The Wealth Creation Formula: How to Go From Middle Class to Wealthy, it’s possible to invest in real estate without money.
Cardone recently shared valuable insights for those looking to enter the real estate market without a significant financial investment. Here are his five key tips for investing in real estate with little to no money.
1. Identify No Money Down Deals
The first step is to look for real estate deals that require little or no down payment. This includes properties like duplexes, fourplexes, and single-family homes. However, Cardone emphasizes the importance of focusing on quality deals rather than just any low-cost opportunity.
“The most important thing in a real estate deal–and this is how you can get deals done with very little or no money– is the deal itself,” said Cardone during an episode of his show. “It is the real estate itself that will determine how much money you can actually get from a bank.”
Read More:
2. Borrow from Family and Friends
Borrowing money from family and friends is another viable option. Cardone advises approaching them for a loan rather than a partnership in the investment. This method can provide a low-cost source of funding. “The cheapest money in the world is family and friends,” said Cardone.
3. Join Real Estate Investment Clubs
Participation in real estate investment clubs can be incredibly beneficial. These clubs provide opportunities to network with serious investors, gain insights into the market, and learn about investment strategies. Cardone himself runs a club, but also suggests exploring local options.
“Real estate is that asset class that will be around, that will benefit from hyperinflation, that will continue to appreciate, and that will have passive income,” said Cardone in his video. “Get in an [investing] club, get around other people. They say your network is your net worth. Get around people who are buying deals, funding deals, and investing in deals.”
4. Partner With Local Syndicators
Local syndicators often have access to deals and funding. By partnering with them, you can leverage their resources and expertise. Cardone points out that some syndicators offer deals with 100% financing, combining various types of debt and equity.
5. Connect With Wealthy Investors
Finally, building relationships with wealthy investors like Cardone can open doors to substantial real estate deals. If you can identify a lucrative property and demonstrate your ability to manage it effectively, these investors may be willing to fund the deal.
The Takeaway
Investing in real estate without a significant personal financial investment is feasible. The key lies in finding quality deals, leveraging personal networks, and utilizing creative financing methods. Cardone’s insights provide a roadmap for anyone looking to break into the real estate market with limited resources.
Editor’s note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates’ editorial team.
More From GOBankingRates
Source link
