For decades, Canadians have clung to the idea of rags to riches. Work nonstop, and you’ll get filthy, stinking rich. Unfortunately, this is mostly a myth; being rich has more to do with your parentage.
Many of the wealthiest individuals in Canada cut their teeth in real estate investing. Yet if they got a leg up from their parents, then they probably never paid for early real estate properties. Is becoming a landlord possible with no money to start investing?
It is! Today, let’s discuss how to become a landlord with no money. Read on for an itty-bitty guide on how to invest in real estate without a dime.
How to Become a Landlord with No Money: Take Out a Loan
Fortunately, there are some “hacks” to jumpstart your real estate investment career. If you don’t have a red cent to spend, then one potential avenue is to take out online loans.
Many people get loans in Canada specifically for the purpose of buying real estate. Mortgages, after all, are big installment loans. This creates the perfect avenue for becoming a landlord with nothing.
Then, you can use the return from this investment to pay off the loan – and improve your credit score! Once you pay off the loan, rental payments go straight into your pocket. Property taxes and maintenance fees aside, it’s money you can reinvest in new properties.
Manage Inherited Properties
Chances are, your parents own (or owned) a home – or several homes – that they will pass on to you. This presents an opportunity to own a home with no money whatsoever.
When the average Canadian home costs about $600,000, it’s a huge way to kick off your real estate investing career.
Partner Up with a Friend or Relative
Many real estate ventures are partnerships between relatives and friends. After all, acquiring property is prohibitively expensive for a single person. It’s often easier instead to spread out the burden.
Find out if a friend of yours is interested in a joint venture where they front the cash. Suppose, for example, they have the money but don’t have the time. You could manage their property for them in exchange for some stake in it.
Rent Out a Room
Many people fail to realize that their current home has a property inside it: an extra room. If you’d rather not let that room go to waste, then list it for rent.
A single room, depending on where you live, could net you $500-$800 easily. There’s far less maintenance since it’s only a room plus any shared amenities.
Sure, you will have to deal with a stranger in your home. There may be growing pains and misunderstandings. Regardless, it’s a great way to transform a spare, useless space into an economic opportunity.
If you don’t have a spare room, you might have a spare garage. Many people have converted a detached garage into a rental or Airbnb. Some have even gone as far as building extra living quarters on their property, such as in the backyard.
Create an Airbnb
An alternative to the previous point is to run an Airbnb from your home. This is a far more lucrative option, and one which may be preferable. You do have to deal with a new person every time, but they only remain for a couple of nights at the most.
Like hotels, you can charge extra for certain amenities and fine people who break anything. You can pause it at any time to take a break, or close it for good when you’re done.
Rent to Own
Most people don’t remain in the same property for long, especially if they’re renting. Instead of moving on to the next rental, however, ask your landlord about rent to own.
Rent to own means you pay a higher monthly rent with the intention of purchasing the home in installments. It’s a contractual agreement that allows you to buy the property while living in it. It could take anywhere from five to ten years, depending on property value.
Once you pay the home off, you sell it and move into another one, repeating the process. Or, you can use the money to buy smaller properties that you can lease out.
Real Estate Crowdfunding
Perhaps the issue isn’t that you don’t have any money whatsoever. Instead, your savings are minimal – too little to do any major investing with.
Starting small, though, provides avenues most people don’t consider. One such way is with real estate crowdfunding.
Crowdfunding is like a partnership with your acquaintances, albeit with strangers this time. Think of real estate crowdfunding as a mutual fund. Other investors pool their money with yours, and you all purchase a property together.
Granted, this gives you only a small stake in the earnings from the property. Regardless, it’s a great way to take a very small amount of money and spin it into gold.
Purchase Foreclosed Properties
One man’s tragedy is another man’s opportunity. Banks take the risk of loaning money to new homeowners knowing those people could default. The result is foreclosure; the bank reclaims the home and resells it.
Banks are not interested in keeping or maintaining real estate properties. They make every effort to get rid of them, selling them off at a steep discount.
Depending on the price of the property, you may require fast loans to front the cash. In the end, it could well be worth it. Renovating the home and putting it back on the market allows you to make a much bigger return than the bank.
Get a Loan with 24cash
Now you know how to become a landlord with no money. There are a surprising amount of options for someone who doesn’t have a penny to their name. If you do have a penny or two, though, there are tons of ways to turn those pennies into dollars.
24cash.ca is your source for the best payday loan alternative, 500 loans, or any other type of loan you need. Fill out our form in 5 minutes or less – all without a credit check!