Like most people without an extra $100,000 or so in the bank, you probably aren’t considering a sizeable real estate investment at this point in time. After all, the average house prices in your area may be anywhere from $100,000 to $400,000 depending on the market. Why would a college student or someone with a new career even look at such a substantial business enterprise?
One of the most common false impressions about real estate investing is that you need a lot of money to get started. But what if I told you there are several ways to invest without using your own money? That’s right! Although property typically does require a pretty good chunk of money to acquire, it doesn’t have to be your money. Now, in my biased opinion as a full-time real estate investor, that is one of the great perks of the business!
There are literally thousands of banks, lending institutions, and private individuals eager to loan money to those with some cash and/or credit. These benefits can be illusive, but there are still plenty of ways to finance a deal when you find the right one. After I got out of college, I used “hard money lenders” to purchase several of my first properties. These lenders rarely require any money down or even a credit report when the loan to value is low enough. Of course, you need to be sure you have negotiated the best possible price on the property in order for the deal to work (but that is another article, altogether). Hard money lenders usually lend up to 70% of the property value....
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