Maybe you've heard someone say you can make money in real estate with no money and no credit, maybe you haven't.
(Maybe you're not up late at night watching TV infomercials.
) But the truth is you can...
if you know how.
While it is possible to do deals with no credit and no money, it can be tough when you're first starting out.
Usually you'll still need SOMEONE'S credit or money...
but it doesn't have to be yours.
Here's how it works: One of the oldest and simplest ways to make money in real estate with no money and no credit is to partner with someone who DOES have these things but doesn't have the time or the skill to go out into the market and wrangle up good deals.
You see, in real estate as with most things, a good education goes a long way.
Maybe your education came from an online course, or the school of hard knocks, but either way, if you can go out there and find a DEAL, finding someone to help you fund it will be a cinch.
The first question everyone always asks is, "So how do I know a Good Deal when I see one?" Well that's simple.
When you're first starting out you want to be looking for properties that have a 30% profit potential or greater.
What that means is, you want to be able to buy the property, fix or clean it up for resale, and then put it on the market for 30% above the total of what you have invested in it (purchase price + fix up).
In order to do this properly you'll need to work backwards.
(Don't worry; in this case working backwards is easier than walking backwards and chewing gum.
) You'll need to determine what the fair market value of the house you're looking to purchasing is, so that you know what you can sell it for.
You do this by checking what other similar homes have sold for in the immediate area.
You can ask your Realtor for this information or there are several websites today that can give you sales data.
Then, you want to chop 30% off this number right from the start.
That will tell you how much you can spend on the whole deal and still make money.
Next you need to determine what repairs the home needs if any.
Chances are it could use something, even if it's minor, like paint and carpet in order to help it look nice and sell faster.
Subtract the total amount for estimated repairs from your running total and the remainder is what you can afford to purchase the property for (including all closing costs).
Now that you know what a good deal looks like and how to spot one, the next thing you need to do is figure out how to acquire it without spending any of your own money.
This is where a partner comes in.
So far you've done all the legwork.
Now it's time for your partner to do their part.
You can meet several people who would be happy to partner with you on a good deal at your local real estate club.
You can spot them pretty easy; sometimes they'll even be wearing shirts or buttons that say "We buy houses".
Introduce yourself and explain your deal to them, show them you're numbers, and spell out exactly what you intend to do with the property and how you intend to sell it.
These guys are pros at spotting a good deal and knowing just how to make money on it.
If you've got a hot deal, they'll be glad to get involved.
How much you make on the deal will be determined by how involved you are in it.
If you've located a good potential property and are basically just bringing it to an investors attention you'll probably get a finders fee of a few hundred dollars when the deal goes through.
If on the other hand you've already negotiated with the seller and have the property under contract then you stand to split the deal 50/50 with your investing partner.
As with most money making endeavors; the key is education.
The more knowledgeable you are, the more prepared you'll be, and the higher your earning potential will become.