One of the Myth’s of real estate is that you have to have money. This is flat out not true, you can absolutely do deals with no money and credit. There are a few precautions I want to mention, especially for beginners before explaining how to do deals with no money and no credit.
Having money and credit can certainly make it easier to do deals. It is crucial however to make sure the deal still meets your criteria. At no point in time should you bend your criteria and make the deal work by putting in your own money. For instance, if you are considering putting in 10% of your own money to make it meet your 70% LTV criteria, you should lower your offer or pass on the deal. The risk has to be warranted, in fact, all deals should be good enough where you do not have to use any of your own money. Using your own money should just sweatin the deal and improve the return without unneeded risks.
Here are some ways you can do deals with No Money and No Credit.
- Use Private Money – Cash is king and having private money backing can allow you to do deals without any of your own money
- Partner – If you have a strong business plan with solid exit strategies and a successful track record there is a ton of money out there to fund 100% of your deals. Make it a win-win for your partners and make it happen.
- Find deals with incredible numbers – If you are an expert at finding incredible deals, doing and exiting the deals then people will fight over funding your deals.
- Wholesale, Bird Dog – There is no risk, money or credit needed in getting a deal under contract or locating deals for investors.
- Subject To, Seller Financing, Lease Options – Taking title to a property subject to the seller’s existing mortgage, getting the seller to carry financing or lease optioning a property are ways to do no money no credit deals.