If you are thinking about investing in real estate but don’t have the cash, you might be wondering how to compete without cash in Hagerstown but still invest. Fortunately, there are 3 pro secrets that you can use to still do deals! Keep reading to find out what they are…
Real estate investing is a great way to break free of the frustrations of Wall Street investments, get out of the rat race, and start building your financial future.
However, for most people, their ability to invest in real estate is only as good as their access to capital. They think that once they run out of money, they’ve run out of options. But nothing is further from the truth. Here are 3 secrets that the pros use when they want to compete without cash in Hagerstown.
Strategy #1. How To Compete Without Cash In Hagerstown – Seller Financing
Most people think of buying a house out-right from the seller by handing over money to the seller so they can hand over the keys to you. However, this is not the only way to buy. Many investors work out seller financing terms, which work just like a mortgage but without the bank!
The seller hands over the keys and you pay the seller a regular monthly payment until the house is paid off. Sellers love this because they get a regular income… you just have to ask because not all sellers are aware that this is an option.
Strategy #2. How To Compete Without Cash In Hagerstown – Barter
Here’s another unusual strategy that can work – you can barter. Let’s say you have a seller who is looking to sell their home and downsize so they can retire. You don’t have to just pay them money if you don’t have any, maybe there’s a different option. For example, if you already own a small apartment building, they might want to move into that and the money you would pay to buy their house would just go toward their rental payment.
Or, maybe you have some money but not enough to cover the purchase of the house – perhaps you can help them move and clean up or fix up their new house. There are many different services that you can barter with sellers, just find out what they want.
Strategy #3. How To Compete Without Cash In Hagerstown – Partner With Others
The most powerful strategy is to partner with others and use a concept called “Other People’s Money” (OPM). It works like this: you find the deal and then you find someone who has money and wants to invest. Then you act as a “middleman” to help them acquire the deal, and you work out the terms so you benefit too. For example, they might own the asset but the two of you split any rental income earned from the property.
Using just these three strategies, many investors have discovered how to compete without cash in Hagerstown. It’s easier and more common than you think!
If you are looking for an investment property to acquire, and if you need some ideas and suggestions about how to compete without cash in Hagerstown then click here and enter your information or pick up the phone and call us at (301) 302-7002.
Charles C.: Hey, what’s going on everybody? Charles Carpenter with Billwood Properties. Your turnkey solution in real estate. How to compete without cash in this market. Sometimes that can be hard. I hear a lot of people say, “How can I compete without having cash?”
Well, there’s a lot of options. First one would be seller financing. If you’re talking to a individual that’s trying to sell their house, why not ask them to hold the paper or the mortgage that’s on the property, or if there is no mortgage, write up a mortgage and just pay the person payments. You don’t have to have the cash. Just ask them if they’d be willing to have a monthly income. Some people don’t want all the cash because they don’t want to pay any taxes on the money or they’d rather stretch out the period of time that they get the money back to them. What you can do is get them to hold a mortgage on the property. You pay them over a period of time.
Upside to that is you can dictate what you want to pay for the property per month and also the terms. You can make it as long as you want, as short as you want. You could put it at any interest rate that you would want. Just make sure that it’s a win/win for both sides, and if it fits their needs at the time, I’m pretty sure you will not have a problem getting seller financing on that deal, so you can use that strategy instead of having cash. Do not use the excuse of I don’t have no cash or I can’t buy a property, because that’s just not a legitimate excuse. There’s just too many ways of how to acquire property without having the actual cash.
Then you could trade something or barter. You never know. That person may want a certain kind of car and you might have that car in your garage, or you might even go out and buy that car if it really makes sense to give them that car for that piece of real estate. Or you may have say a piece of land that you’re not doing anything on, and then this person’s a hunter. I know in our area, some people hunt, and so you may come across a guy that just wants some land to hunt on, and then you can trade this piece of land for maybe a apartment building that’s not performing because he doesn’t like any of the tenants and he’d rather be in his tree stand shooting a deer. So you could do that. You could just trade stuff or barter.
Another thing you could do to compete without cash is partner up with somebody. You can either partner up with somebody that has the cash, but just doesn’t have the knowledge of what to do with that or how to deploy that cash in real estate to make it pay them. You can partner with somebody that has cash. You can also partner with somebody that has credit. A strategy you could use is use private money or a hard money lender. Partner up with somebody that has good credit if maybe you don’t have good credit. Then use that private money to purchase the property, rehab it, and then you partner up with the person that has good credit to then take the property to the bank, get it refinanced out to pay off your private money lender, and then you own the property with another mortgage from the bank.
Your private money guy’s been paid off. And now you have a property, even though you don’t have good credit, but you were able to line up the private money to acquire, fix up the property. You found a partner with good credit. He went to the bank. He gets the mortgage, and now you have a buy and hold property.
There’s a lot of options out there of how to buy a property even if you don’t have any cash. If you would like to learn more, you could reach out to me at billwoodproperties.com.