How can I get a bank to loan me $10,000-$20,000 if I don’t have any equity to loan against?
many banks offer what they call a “Signature Loan” which is guaranteed with your signature and no collateral, but they have a higher interest rate.
As far as question #2 goes, finding the properties takes a little work. Search classifieds, search MLS, drive around, etc. Once you find a property make sure you do your due dillegence when making the offer and tie it up with a purchase agreement. You can put an escapre clasue in it if you can’t find an investor/rehabber to purchas it from you. however, if you got your numbers correct when inspecting the house and repairs you should have no problem finding a taker.
Also search the how to’s here, or find some free e-books on flipping and wholesaling or go to your library and do you research.
I have an older Ron LeGrand Lease Option course I bought off of Ebay. Lease Options sound like a good idea, but I have an important question.
I don’t have much money, I just have enough to pay my rent and pay my bills with a little left over. How can I do a Lease Option with an owner and leave myself an out if I can’t find a qualified Tenant/Buyer for the property? I don’t have the money to pay my rent and pay the cost on another house. So, is there a creative way around this problem?
I hear all the time that you don’t need money to invest in real estate, so there has to be an answer to my question that works. What is it?
Re: Lease Options With No Money - Posted by Doug (ON)
Posted by Doug (ON) on April 04, 2006 at 22:55:15:
It’s usually not a problem to include a cancellation clause or a “subject to finding suitable tenant” clause.
Since you have no cash reserves you can flip any lease/options you negotiate directly to the buyer or to another investor. That way you collect the buyer’s down payment as an assignment fee.
It’s a good way to start out but unless you’re living in a major buyer’s market it’s better to hold on to those few and far between L/O deals. There’s a hell of a lot more money in a nice multi-year L/O than just what you get upfront, but you need money in case there’s a vacancy or repairs needed along the way.
Posted by Marc Donovan on April 03, 2006 at 19:26:00:
You are not ready for l/o yet. You need some reserves in order to pull that off. Build your reserves by bird dogging. Its a free education, all it will cost you is your time. You will learn how to find the good deals and you will learn why they are good, and why they are not. This is the best way to learn. Expect to get between one to five thousand per deal you find. Once you learn and you have a stable of buyers, you can start tying up the properties with your own contract, then assigning to your investors. If you get that far, come back here to learn your next steps.
Good hunting! Just remember, the best bird dogs go after motivated sellers, not property for sale.
You need money to invest in real estate but it doesn’t have to be yours. I bought 3 houses without using my own money (I used the bank’s). No money down and got 10% equity to boot. Take my equity, take my house, please.
The other way to make money and this is how anyone should start if they don’t have any cash is to flip or wholesale. That way you’re making money on houses you don’t even own. I know one lady that did $40k+ on her first one. There are plenty of 5-10-20k deals out there. Doesn’t take long to build up some cash reserves that way.
I wish I had done that first before buying my 3 houses. Had I met my mentor first I’d have never bought them.
I know Wendy Patton puts a clause in her purchase contract that gives her a specific amt of time to find a tenant buyer and that the contract doesn’t take effect until she finds one but if she doesn’t find a tenant buyer she doesn’t have to go thru with deal.
Sounds good, but that leads me to a couple of more questions:
How can I get a bank to loan me $10,000-$20,000 if I don’t have any equity to loan against?
How does the lady you spoke about find those houses that are candidates to flip/wholesale? How does she tie up the house with the owner so she has time to go out and find someone who would be interested in buying what she has?
I assume that Wendy Patton verbally explains her intentions to the owner when they are talking about the deal? Would you mind putting that clause you refer to up on this post so I can see how she words it?
