Your guide: how to buy investment property with no money down
So, you’re looking to buy an investment property? With so many people being investment coaches online, it can be a little hard and daunting to figure out what exactly you need to buy your investment property. Sometimes this has investors looking for creative ways to finance their investment decisions.
Well, have you ever thought about buying a property with no money down? You’re in luck! Today we’re going to explore just that so you can make the best judgment call for your investment.
Keep reading to find out more.
Also read: BRICS to Boost European Trade: Is the US Dollar in Jeopardy?
What is a no-money-down investment?
At first glance, you might wonder if a no-money-down investment is even possible. Yes, it is. It’s a pretty creative financing option that investors typically make so that they do not have to shell out a huge lump sum of cash from their reserves. There are a few ways to lock down a no-money-down investment and it will ultimately depend on what options are available for you. Here they are below:
How to buy investment property with no money
Use your home equity
First, one of the main ways that people will typically invest in other properties with no money down is by leveraging their home equity. So, if you have equity in your home, you can typically tap into it and unlock a line of credit. You would then use this line of credit to buy an investment property with no personal money down. For example, you can use this as a form of daily payment for the new investment property.
Seller Financing
Second, you have what’s called a “seller financing” option. This might not be as easy to obtain, but it never hurts to try. If you want to be super creative and don’t want to go the traditional route of getting a mortgage from a lender, you can see if the seller can finance the purchase for you. This could be another great way to buy the property with no personal money down.
Also read: BRICS to Boost European Trade: Is the US Dollar in Jeopardy?
Investors
Lastly, you can also seek out the help of fellow investors. This will be good if you have a great network of people who are okay with being silent investors. If you structure the deal just right, it could be a huge win-win because your partner will provide the funding and you will provide your time and expertise.
Just remember, some investors might ask for more of a stake in the deal because they are opting to stay silent and are taking on the majority of the financial risk. As long as you are prepared to make a counteroffer, you might be able to make this option make sense for you.
What credit score do I need to buy a house with no money down?
The base credit score you need for a down USDA loan is going to be at least 640.
Some other ways to buy investment with no money down
- House Hacking
- Lease Options
- Short Term Loan
- Convert Your Residence
Conclusion
In conclusion, if you’re looking to buy an investment property with no money down, it’s going to be a little challenging, but nothing you can’t solve. By using some of the options listed above, you’re going to be able to start building your real estate portfolio pretty quickly. Just remember to do your due diligence and remember that there’s no right or wrong option. It’s going to be what makes the most sense.
Happy hunting!
