Think about the first thing that comes to mind when you think about a mortgage payment. Most people think that the standard downpayment is about 20%, but that’s no longer the case.
Recent data shows that the average down payment is around 5% of the average home’s total purchase price. People are buying homes with smaller down payments to get into the real estate market. In some cases, you can even put nothing down on your mortgage.
It is possible to become a real estate investor with little to no money. All you have to do is know all your options for unique financing terms.
In the article below, you’ll find a list of ways you can enter the real estate market without having a large pile of cash on hand. Continue reading to learn more about all your options.
You Can Get a Mortgage With No Down Payment
If you’re thinking about becoming a real estate investor, you should be aware of 100% mortgages.
A 100% mortgage is a mortgage that covers the entire cost of the property you’re trying to buy. The benefit of a 100% mortgage is you can purchase property and only have to worry about making the monthly payment. The downside of a 100% mortgage is that you’ll accept a lot of risks.
You’ll be purchasing a house without having any equity in it, which means you would owe the entire value of the house if you were unable to make your monthly mortgage payments.
Consider Looking Into Foreclosed Properties
Buying a foreclosed property is a great way to acquire a real estate investment without having much money. Foreclosed properties are much more affordable than other properties, but you do have to go through non-standard proceedings to acquire foreclosed property.
Buying a foreclosed property means going through an auction or through the company that lent the money for the foreclosed property.
Use the Property You Already Have
Owning property does not make you a real estate investor, but it makes it easy to become one.
All you have to do is start renting out your current property for a higher rent price than you’re paying on your mortgage. You can rent out part of your property or move out of your property completely and rent out the whole thing.
This is a very low-risk way to get into the world of real estate investing. Once you build up a solid cash flow, you can expand into other properties and rent those out as well. Having a property management company by your side will help you navigate this process.
How to Become a Real Estate Investor With No Money
The tips in this article should help you realize your dream of becoming a real estate investor. While most people think that you need a sizeable down payment in order to buy real estate, the facts above show that you can enter the world of real estate at any time.
When you’re ready to become a real estate investor in Charlotte, NC, be sure to reach out to the helpful team at Wilkinson Property Management for expert advice.