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Invest with Little or No Money

September 18, 2018

Everyone wants to know how to invest with little or no money. Why? Because everyone is broke!! Thats OK. I will tell you a few ways that you can invest with little or no money.

First, why are you broke? I bet you have to drive a brand new car. When it stops smelling new, you go out and get a brand new car payment, higher than the last one. Just so you know, buying a new car is one of the worst financial decisions of your life. You think you are going to invest with little or no money in a car, but what a bad decision.

You probably go out to lunch just about everyday also, dont you?? Spending just that little bit every day is what is keeping you broke. There are literally hundreds of $$ every month going down the drain when all you have to do is take 5 minutes to save $10, EVERYDAY.

Don’t even get me started with dinners and drinks that cost $60 to $100 a couple of times a week. I can spend less than $50 at the grocery store and cook for probably 6 or 7 people at home. I bet your friends would love to go to your house. Even more if you are going to cook for them.

So we know why you are broke. Its because you spend too much money for crap you dont need like that new iphone. Remember, its the little things. Little things like cutting out bad food will help you lose weight. Getting rid of the boyfriend or girlfriend that does not treat you right will make you SOOOOO much happier.

You really came here to find out how to invest with little or no money. So here it is. Its tough. Most people cant do it. It takes lots of work, You have to get out of your comfort zone. You might have to do some cold calling. Maybe even knock on someone’s door that you dont know(I just did that yesterday).

Let me list some things that you need to do to invest with little or no money:

• Market to people who might have some distress in their life

Get a list of people who are about to get foreclosed on. I bet they want to sell quick. Maybe people who just got divorced. When someone is behind on their taxes and are about to get foreclosed, they tend to want to sell quick and for less than market price.

• Make contact with these people

I send out postcards to a bunch of people who might be in some sort of distress. I went to someone’s house yesterday who was behind on his taxes. His house was about to get sold. It takes lots of chutzpah to knock on a stranger’s door and ask them if they want to sell it.

Talk with them. Find out what they want out of the situation. You will be amazed to find out that it is usually not a bunch of money. They want mental clarity from the situation. This helps you invest with little or no money. It will take some money, just not yours.

• Find a buyer for that property

Chances are that the seller of the property is ready to almost give away the property. Now you have to have done some homework at this point. You have to have gone to some networking meetings and met some buyers, preferrably cash buyers.

Real Estate Investor Associations or REIAs are where other investors network. Alamo Investors Association is a pretty good group around here. I also have a group that meets up once a month on the 2nd Wednesday of the month on Meetup, Real Estate Group of SA. Meet some people and have them ready to buy your deal.

• Get it under contract

This point and the last one might get interchanged sometimes. Sometimes you want to get it under contract and then find a buyer. I was always scared that I would not be able to find a buyer so I would get a buyer and find out his buy price and then I could just get it under contract for a few thousand $$ less.

I use the Realtor approved contract for our state. In Texas we use the TREC contract. They have a downloadable form.  Most title companies know the contract up and down so I figured I should know it and use it too. Once you have the contract, get it to a title company.

• And lastly, Get PAID

After you have a contract AND you have a buyer that you know is going to close on the property, you will sign an assignment contract with the buyer. They will basically step into your shoes as far as the contract is concerned. Your buyer will be buying the property from the seller for a little more than you have it under contract for. This difference in price is what you make on the transaction.

You usually get paid at the closing. I like to be at the closing to make sure everything goes right. Also, I can answer any questions if something comes up.

This is a very brief description of how to make money or invest with little or no money of your own. This is referred to as wholesaling. Once you do a few deals like this, you will have a little cash to be able to put a down payment on your next deal.

This means that you dont have to wholesale it, you can keep it for yourself. This is where you start to build some wealth.

After some years you get the mortgage paid down, prices have gone up and the next thing you know you are worth $1million, maybe more.

Divorces are where you can sometimes take over a person’s mortgage. This is also called purchasing the property subject to the mortgage or “sub-to”. I will have another discussion later with more details for sub-to. The point is that you can take over a mortgage, just like you can for a car.

We are in such a good economy right now, but when companies start laying off people and they get a few payments behind, you might be able to take over someone’s mortgage. I tend to see more sub-tos with little down payment when there is more unemployment.

As I mentioned above, I send out lots of postcards to people who might be in a bad situation. I also ask people that I know or work with if they know anyone who is in those same types of situations. When friends or family bring me a potential deal and I buy it, I pay them a referral fee. Sometimes fees will be $100, but usually $500. The really great deals will get $1,000.

Put it on your facebook profile that you buys houses. Tell everyone that you know that you buy houses. Scream it from the rooftops, “I Buy Houses!!!”

As time goes by, more and more people will come to you with deals. The more postcards you send out, the more deals you will buy. This is not a get rich quick scenario. It will make you money over time though. Just be patient.