5 Ways To Buy Commercial Property [With NO Money]

5 Ways To Buy Commercial Property [With NO Money]

don't have any money but you still want to invest in commercial real estate well today I'm going to show you five ways that you can buy commercial property with no money and be sure to stick around to the end when I'll share the fifth strategy with you which in my opinion is the most creative strategy out there yes you still actually have some options that's how I got my start in the world of commercial real estate investing I bought my first office building without any money out of pocket and it was the best thing I could have ever done for myself so if you're looking to learn how to buy commercial property with no money here's your guide if you want to be as successful as possible in commercial real estate you need to get creative with your deals do you think out of the box when you look at deals or do you simply go buy the books the best real estate deals you'll ever find will often come from when you're thinking creatively figure out how to solve problems that others can't or won't you don't have to spend your money to buy real estate if you're just starting your investing journey money is probably tight so don't spend your money on commercial properties use someone else's raising capital from investors isn't quite as hard as it's often made out to be it's not some ancient mystery many investors just don't have the time to go find deal after deal which is why they're willing to place capital with operators like you who do find the deals good deals Plus trustworthy operators equals investment opportunity so here are my five favorite strategies for buying real estate with no money out of pocket number 1 get your real estate license that's right study the materials take the test get your real estate license and start finding deals the strategy is my favorite and it's actually how I bought my first office building you can also make some money helping others buy and sell real estate too while you're looking for these opportunities so when you're out looking for deals let your network know that you're interested in bringing investors into the deals that you're finding you'll quickly build up a list of interested parties that will want to see your offerings when you go to buy a property negotiate your commissions now here's the best part since you have your real estate license you can actually negotiate to get paid a commission while you acquire the asset after all the seller would pay that to any other real estate agent if they brought a buyer right that 3% Commission can turn into a 15% equity stake if you're a winner requires you to put 20% down and you're not actually coming out of pocket to pay for the investment you really just have your time and energy invested into the deal so the sellers basically giving you money to invest that's how having a real estate license can help you get a head start on investing number two is to lease with a purchase option or rent to oh is the property currently vacant if so you could approach the landlord with a lease to purchase option you'll lease the property from the landlord and operate your business or sublease to other tenants in order to make those rent payments this lease can last for as long as you and the owner decide and you can actually apply a portion of those rent payments to your purchase price which will also vary depending on your negotiations your monthly payments can go towards the purchase price of the building which relieves you from having to fork over a large down payment when you go to acquire the property after a set amount of time the purchase option will expire or come due at which point you'll need to close on the property number three is subject to if the seller has existing financing in place and is in a distressed situation or just looking to walk away from the property you could purchase it subject to the current mortgage essentially you're assuming the financing that is already in place on the property and letting the owner walk away if you're considering this method you'll certainly want to review the loan documents to be sure that you agree with the original terms and rates not all properties can be acquired this way because some mortgage documents can have a due on sale clause which triggers the repayment of the debt upon a transfer of ownership using this strategy you're relieving the property owner of their liabilities and taking on that debt yourself number four is seller financing ask the seller if they are willing to carry the debt on the property when you buy it instead of having to go through rigorous lender approvals you may be able to make your monthly payments to the property owner instead sometimes the property owner will even accept little to no down payment so you won't have to fork over any cash whatsoever after a few years the sellers financing will probably balloon and you'll have to refinance to pay them off or they may just carry the debt for the wife of the property again it just comes down to how you negotiate the deal so why would a seller finance their own project well there are actually a few good reasons maybe they want to avoid tax obligations from a sale or they enjoy having the monthly income they could also believe in you and just want to help you out and this strategy could help them get rid of the property faster as it opens up their buyer pool since they're now collecting interest rate on a property that they have the mortgage on their returns could be more attractive over the long run and there are so many other reasons too so that's all we have for seller financing the fifth strategy is to have the seller pay your down payment now this is getting really creative ask the seller if they'd be willing to pay your down payment for you in order to structure a deal like this you'll likely end up having to pay well above their asking price but that shouldn't be too big of a deal to you since you won't have to come out of pocket on the acquisition getting the property to appraise for your new purchase price however could be a little tricky so you may have to figure that part out but here's an example of how I would see this type of deal being structured let's say the seller is asking $500,000 for their property the bank requires you to put down 15% – owner occupy the space the seller agrees to sell the property for $600,000 and gives you the down payment of $90,000 at closing the seller makes an extra ten thousand dollars for getting creative and you get the property with no money down sounds like a win-win for both parties keep in mind too that your loan will be larger in this scenario so you will have to make larger monthly payments but again you bought the property without paying for it at the end of the day the most successful real estate investors and developers are also the most creative so don't be afraid to break the mold find creative ways to make deals happen regardless of your lack of funds knowledge or experience so there you have it four five ways to buy commercial property with no money I'm curious which of these strategies are you planning to use let me know in the comments below if you enjoyed this video go ahead and give it a thumbs up if you have any questions about investing in commercial real estate feel free to leave me a comment below and I'll do my best to get back with you and if you're interested in more commercial real estate investing strategies leasing and management tips market updates and more go ahead and hit that subscribe button

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