I hope the title catches your eye! That is the point. There is this widely perpetrated myth that, “it takes money to make money”. I have said before that this is false. I stand by that. Dare me to and I will prove it.

Most people think that if you don’t need money in order to get more of it then you are saying that you can get money for nothing. Not the case! I also say that there is no such thing as something for nothing. You need to know that it’s not about money… It’s more about position…

Also, I am not referring to using someone else’ money to make money in real estate. No credit, No cash, None. I am not saying find a partner with money to back you in deals. None of that garbage. This post is a 5 minute crash course in how to control real estate in order to create income for yourself.

Disclaimer: I am not a licensed real estate agent.
Warning: This post is going to tell you to read.

I now will offer in 1 blog post what people charge $1000s of dollars per day at seminars to learn.

Investing in Real Estate Without ANY Money!!!

Step One: Learn to play the game

Here I will offer some introductory articles on REI that I consider to be extremely helpful for someone new who is looking to make money without any.

One Minute Guide To Achieving Anything.

Making Offers With No Money

The Power Within

These are 3 good articles to get yourself in the right thought process… Now onto the specific method…

#1. You find a property that you can buy Below Market Value.

Here is an example of a deal that I am in the process of doing.

3 Bed, 1 Bath house
Assessed Value: $22,000
Asking Price: $14,000
Est. Repairs: $7,000
My estimated Market Value: About $10,000 ( I came up with this given what other houses in the neighborhood were selling for in the past couple weeks. A lot of foreclosure sales on the block drove the current value down).

After Repair Value: $24,000

So here is the property. I consider below market value to be if I can buy it for under $10,000.

I want to do this deal with 0 money out of my pocket and make a couple thousand dollars. That sounds reasonable for me.

Step 2: Controlling the property with an “Option To Purchase”. This contract is the main contract you will use to control Real Estate with 0 money out of your pocket.

What is an Option?

What an option contract says is that you the buyer have the Exclusive right to purchase the property at an agreed upon price.

The Option Period is the term for which your option is valid. Usually 1-3 months for our purposes. But the longer the better!

Options are ridiculously simple in concept.

The key phrase in the option contract is, “Right To Assign”

That phrase is how you can make money in real estate with no money.

What it means is that you have the right to assign your contract to anyone that you choose.

So back to the deal I am doing. My offer to the seller was as follows.

Option Price: $8,000
Term: 30 days; with 1 30 day renewal if I choose.

That is it!

The contract is a bit longer but that is the entire idea.

So if my offer is expected then I should make $3,000-$4,000 in 2-3 weeks with 0 dollars out of my pocket. (I base this on my estimate that I can get a quick sale of $10-12,000)

What is it costing me?

Time!

This deal will probably cost me 30-40 hours of work to get it closed. I am leveraging my time in order to make money. It requires no out of pocket investment. Just a bit of knowledge and effort..

Learn everything you can about options! Read, Read, Read at REIclub.com

Options are how you make money in Real Estate without money. Best part is they are simple…

Here is the reading guide for REI CLUB:

Read the articles above. Then find the “options” section in articles and read all of those.

Next read all of articles under Bird dogging.

Then read some of the Flipping Properties, Wholesaling section. Pick 8-10.

Then read as much as you can in the advertising/marketing section.

Read Negotiating, Motivated Sellers, Closing

Honestly I’d be comfortable to say read every article at the site but that could take a while.

Get comfortable with the basics. Then just constantly add to your knowledge. The more you know, the better position you will be in to make money (Universal Truth Disclaimer!). Learn, Learn, Learn…

As you do, surround yourself with people in REI. Find an investor in your town and email them. Offer to work for them to free in order to learn the game. 4-6 hours per week should be fine. Just get to know them, open up a report.

Key Points out of this:
Knowledge is power in REI, Surround yourself with like minded people ONLY, Plan to succeed.

I hope this opens your mind to learning a new way to create income for yourself each year without needing a lot of money to do it.

Final Crash Course: Simple Plan behind an Option Deal.

A. Find a VERY motivated seller. (hint: Call FSBO ads in the Newspaper every sunday)

B. Have Real Estate Agent estimate the market value of it (plenty of realtors will do it for free).

C. Negotiate an Option price below your estimated market value. (Before you begin negotiating an offer make sure you build a case of why the seller should accept your offer. Get as much information from the seller as you can. Use their weaknesses as strength’s in your negotiating. You have to convince yourself that you should pay $XXX for the property before you can hope to convince a seller!)

D. Get them to sign on the line that is dotted!. Sign contract with seller (I have the contracts, I can email them to anyone who is interested just ask in the comments. Insert seek legal counsel disclaimer.)

E. Market the hell out of it (Craigslist, Craigslist, Craigslist)

F. Negotiate Price with end buyer above your option price. (Aim for selling it at about 90-95% of market value. So again make sure you have negotiated an option price well below this. Also, if a deal isn’t gonna make you $2000 or more find a different one.)

G. CLOSE! (If you feel the need to hire a real estate agent to walk you through your first closing that is ok. Offer them 1% commission to walk you through closing.)
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That is all folks. Each letter there is a step you will have to learn. Practice each step individually in your mind. Once you put all those together you can really start making money.

If you can’t make money without money, you probably can’t make any with it.

A warning: Most Real Estate Agents are clueless about Investing in Real Estate. Be wary about seeking advice from them about your deals.

Last piece of advice: Get to know the following; Title Company Owner, Established Real Estate Investor, Realtor, Accountant, Attorney.

Seek out these people and provide a mutually beneficial relationship. If you offer them something they will be much more apt to helping you on your way. If you feel you have nothing to offer them, try kindness.

Read, Read, Read

Jordan

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