There are actually quite a few ways to get started in real estate investing with no money! In today’s video I will be sharing a handful of those strategies and methods with you. Most people think that you need to have a lot of cash on hand or good credit, but a lot of the strategies I will be sharing with you actually don’t require either, and they can help you get started making some money in real estate.
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Hi, I’m Chimene Van Gundy, best selling author and mobile home millionaire, and in today’s video we’re going to talk about the best ways to invest in real estate with no money. This is one of my favorite subjects because when I got started in real estate, I had no credit and no money and I feel like that out of all the videos that I do, this one is going to be the most valuable for people trying to get out of the daily grind, and I love helping people.
The first one that I could suggest is wholesaling. Now, a lot of people will tell you wholesaling is getting the price of a property at 65% of its value. That’s not wholesaling. A true wholesaling process is when you actually find a house. So let’s say that I go out and I find a fixer upper for $40,000 I walk through the home with the seller and I’m pointing out all of the repairs that are going to need to be done in that home right now. I get them to agree to give it to me for $15,000 cash. If I can close sooner. So I get it under contract and then I go out and I advertise that house for 25 or $30,000 let’s say that I find somebody to buy that house at $25,000 I use an assignment agreement, which means your last name becomes and or assigns. But the assignment agreement is what gives you a way to wholesale the house. All we’re doing is taking the contract that you got and we’re selling it to an individual and they fulfill that contract and it actually could be an individual or a business. So if you got the house under contract for 15,000 and we’re going to go sell it to an individual or business for 25,000 you now have made $10,000 on this spread. And that is what wholesaling is. You’re just basically making relationships and putting people together. And for all those women out there, we excel at this. So every woman should be out there wholesaling.
And the next way to make money in real estate with actually no cash is redemption rights. Now, this is a very unknown niche and real estate, so I want to share it with you every year, once or twice a year or unless you’re in Texas, where it’s the first Tuesday of every month. The counties and cities have tax cells. These are properties that are sold at auction because property taxes have not been paid. Well. This is where you actually have the advantage. Instead of trying to compete with other investors on those properties, you actually can front run your list, which means you’re gonna print out that list from the county clerk’s office or the county assessor’s office or the tax collector’s office, whichever it is in your city or county and you’re going to front run them. They typically publish those lists about a month or two before the actual sale happens. You’re going to figure out which house is more to sell and then you’re going to go knock on that person’s door and have a chat with them about their back taxes and taxes owed. 99% of people can’t afford to pay them. That’s why their house or property is going up for auction. This is actually where you will get the benefit of it by creating a win win situation for both people, you actually could offer the individual two to $500 for their right of redemption. So after that transaction is done, and it also depends on the state. So check your state. I know in some states you can use a warranty deed for redemption rights, but all you’re going to do is go to the tax sale on the day that it happens and find out who actually got that property or who won it by bid. Okay, so let’s say that you have two investors that are actually bidding against each other. So we have a John in a David, Mr John Wins. You’re just going to go up and say, hi, Mr John. My name is Jane investor and I have the writer redemption on this property. Mr Dave investor told me that he would give me $10,000 from my right of redemption. Would you give me 12 the reason why this is important is because most investors, the only thing they can do with the property once they’ve gotten it at a tax sale, if it’s a homestead property, they have two years that all they can do is mow the lawn. Most investors don’t want their investment held up for two years, right? So they’re going to be willing to pay you for those right of redemptions. And just by doing a little bit of finagling and really hustling and actually building relationships, this is where this can be a gold mine for you, and you can make some money very easily in real estate.
The next one I want to talk about is uncashed warrants. What is uncashed warrants? Well, this is actually uncast checks. So in every city in America across the u s there’s a list of people that have checks waiting for them, and most of the time the counties or cities have done everything they can to identify these people. Most people don’t even know that they have money there. You actually can go down to the district clerk’s office or the tax collector’s office and get a list of uncashed warrants, then you can actually start working that list and try to find the people as you’re fine finding the people. You can get a finder’s fee for that and that could be anywhere from 15 to 25% of whatever that check is. So you think about getting 15 to 25% of $100,000 check. That’s quite a good amount of money and you can do that very easily with no money out of your pocket either.
The other thing I want to talk about is unclaimed money from tax sales. Well, what is that show men? Let me explain. So when you have a property that is up for auction at a tax sale and there’s $10,000 in taxes owed, let’s say at a tax sale auction, you have two investors betting against it. There’s time we’re going to have Jane investor and Jill investor, they’re in a bidding war against it. They’re at the tax auction, and I love auctions because the energy’s flowing and they’re at a tax auction. And Ms Jane Auction, Ms Jane Investor Wins that auction. She won it for $100,000 what did I say? The back taxes were $10,000 right? We have a $90,000 spread now of excess that was paid. So what happens to them? A lot of people don’t ask this question. Well, what happens to it is that it’s actually supposed to go back to the original home owner, but most counties, the only thing that they have to do by law is send a letter to the last known address where the person lived. Well, where was that? Where the house just got auctioned off that are they going to get the mail? No, they’re not. And that’s the point. Counties make billions and billions of dollars every year on these things. So you have about in America, I think the last that was $60 billion a year in excess funds that people don’t even know about it. In some counties I have them have had them say that their excess proceeds were their free money. So like in Texas you only have two years to climb your money. If you don’t know that you had money, what do you do? Right? So you actually can go in, find the people and let them know, hey, you’ve got $90,000 sitting in the bank and we’ll actually help you with that. So you can take them through that process, meaning that you can get another finder’s fee of 20 to 35% on that money, having no money out of your pocket, but actually changing people’s lives and creating a win win situation for all. And this is what I love.
And another way to make money in real estate with actually using none of your own money, it’s raising funds. So if you have connections to a lot of people with a lot of money, this is great. You actually can team up with other real estate investors and help them raise funds for projects and the kit and then absolutely get paid a percentage on the money that you raise. And it takes you no money at all. You just have to make relationships and network. Remember, your net work is your net worth. There are so many ways to skin a cat, right? And I hope that this video helps you know and realize that there are amazing ways in real estate to make money with no money down. And I hope that these videos help you and I wish you the best of luck and finding ways in which to invest in real estate with no money out of pocket. And don’t forget to make sure when looking for a coach and mentor that you’re actually getting somebody that aligns with your values.
If you love these videos, I would like to invite you to my free webinar where I’m going to teach you how to buy and sell mobile homes and the three secrets that top real estate investors use to grow their profits, whether in a booming or slow economy. Don’t forget to like share, comment, and subscribe.
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