One of the questions I get asked most often is how to get started in property investing without enough money for a deposit.
Here are 5 top tips to help you.
- Who do you know who may have or know someone with money ? Make or renew the connections, take it slowly with them and tell them what you are doing and find out about them. Explain that there are lots of opportunities out there, but just not enough funds. Then ask if they know someone who would be interested in earning more interest than they can currently get in a bank. Once you have gained their interest make sure you work out your figures on a deal, can you offer them 5% or 8% or even 10% and still make enough money for you?
- Work with a Joint Venture partner, where you each bring something to the deal, experience and or money. Make a list of the skills you do not have, or need to get more experience with and find someone with those skills. Make sure the legalities of JV partners are fully understood as it’s a very different proposition than just finding an investor.
- Attend a Property Networking event and learn what other people are doing and also attend a business networking meeting where you are going to meet people who have money and a possible interest in either property or achieving a better interest rate. Again this approach will take time as you will need to build trust with people but it’s even been known for successful investing relationships to be built up in the gym or sauna!
- The more you look for property deals the more you will find, but they might not all be right for you. Make extra money and increase your investment cash pot by selling on deals that are not right for you to other investors.
- Use a purchase lease option where you agree with the owner that you will take over the responsibility for a property for a set period of time and have an option to buy it at the end of that period. Make sure you have the lease option drawn up by a conveyancer who is experienced in this. These sort of opportunities can occur in a number of situations for example where a vendor cannot obtain the full amount they need when selling a property even though they have moved out. The property is costing them money even though it is empty.
If you have found this interesting or it has raised some questions then please get in touch with Debra Long and book a FREE coaching call and let’s discuss if we can help you further.