Having made my first million in real estate by my 25th birthday, it's a great pleasure for me to help other people the same the same.
And do you know what the most common questions is? It's this:
"Robert, I do not have thousands to pay for a deposit or nonpayment on a property."
The thing is, many people are in the same position. They know how great property is as an investment, but they feel that the fact of a large amount in the bank means that they can not invest in property.
Well today I am going to show you that this is not true at all – in fact anyone can buy as much property as they want without a penny of their own money. So here are my insider top tips how I am my team do it … week in week out!
Method 1-Key Worker Grants
The government starter home initiative is aimed at key workers, such as firefighters, nurses, and teachers, who can not normally afford to buy homes in the areas that they work. The scheme is administered by community housing associations. who offer interest free loans to top up a mortgage and help with buying property.
Not living in the UK? Well check out your citizen advice bureau and find out if there is a similar program in your country!
Method 2-The Credit Card Secret
It is possible to obtain property with no money down using readily accessible zero interest credit cards.
If you are looking to purchase low cost properties, then this can be done using credit cards. To do this, you simply apply for a credit card who issues associated checks, such as Barclaycard or Citibank. There are many of these to choose from.
Remember that anything and everything in life is negotiable. That means that if you think that that the credit limit on your card is low you can ask your bank to increase it. The thing to remember here is that they want your business and they are a lot of hanks competitive for it, so they will probably be more than happy to do this for you.
You can then use these credit cards to wither pay for deposit and then get a mortgage for the rest, or if your balance is high enough, the entire property.
The next step is then to apply for another credit card and then take advantage of their "introductory balance transfer rate" where you pay zero percent for around 6 months.
After about 5 months, you then apply for a third credit card offering this introductory rate.
It seems madness, but this is a very easy thing to do and it does work !. In fact many investors used this idea to make their first property purchase- I know I did!
Method 3-Borrow Against Your Other Assets
It is normally possible and quite straightforward to borrow money on the strength of assets that you already have. These can be used as security and therefore allow you to obtain a loan for 100% of the value of the property.
Let me give you an example. You can get a 95% mortgage from a bank, but instead of using your own money to pay for the 5% deposit, you borrow it form the bank. Most banks are happy to do this.
The great thing about having property is that you can use it to raise funds by releasing some of the equity in it. This then can top used to pay the deposit of another. It's like a great snowball effect. This is a favorite of many of the Buy-to-let landlords (although this only really works in the properties are continuing to increase in value.)
Method 4-Form A Property Buying Syndicate
Here is a way of actually getting a property for nothing. What you do is put together a syndicate of people who will provide the money for an investment, or maybe just the down payment.
Imagine that you are investing in a property that is worth ₤ 90,000. You only need to find 9 people, each of whom put in ₤ 10,000. Since all of the money has been paid, you do not have to pay a penny. In fact your contribution as putting everything together. This is because you have gone to the trouble of attracting people to the syndicate and putting the deal together.
Since property investment is such a good investment, and more people are now realizing that, finding and creating a syndicate can be quite easy.
A word of warning though, it is vital that the syndicate is set up properly and legal help and advise thought.
Method 5-Ask Someone To Act As a Guarantor For Tthe Loan
One option, if you can not afford a deposit, is to take out an unsecured loan. But if the bank finds you unsuitable, then one solution is to find someone who will act as guarantor for the loan. This can be a relative, are not or friend.
In many occasions, people who use this technique tend to then rent out one of the rooms in their property to help pay the mortgage.
Remember, the UK government allows you to earn ₤ 4,250 a year tax free from this!
Method 6-Get A 100% Mortgage
These types of mortgages are very useful as you do not need to put down anything at all for a deposit. Although they are becoming more common in the UK, there are some drawbacks with them. First of all, they tend to have quite specific criteria for the people they are available to. The normal criteria for this is your age or the amount of money you make per year. Furthermore, you might not be able to use them as a buy-to-let property.
These types of mortgages are almost unheard of in overseas property. So if you do find one, then that is an initiator that that investment might be worth checking out.
In Summary …
So there you have it. The six methods I teach and practice to buy property without any of your own money.
I am using these methods to buy around 5 properties a month and continue to do so- the people I teach are achieving the same. In fact some of them have overtaken me! It's a great feeling knowing that the student overtakes the teacher- believe me.
The great thing that by buying with "Other People's Money", you get to maximize your return on investment because as you know the less of your own money that you put into a property, the higher your return.
And when you invest nothing, your return could be 500%, 800% even over 1000% in a single year. Try doing that with stocks and shares!