• Pace Morby

How to Get into Real Estate with No Capital in 2022

Updated: Apr 14

One big preconception that I see, in both my Subto students and anyone who is interested in getting into real estate investing, is that you have to be a real estate agent.


Real estate agents are great, don’t get me wrong; my hot wife Laura is a real estate agent.


However, the entry to get into real estate investing is not getting your real estate license.


In fact, getting that license is not the way to make money.


If you want a job, then absolutely get your realtor license, as that is what you will be doing.


But getting your realtor license does not mean that you are an investor.


Having your realtor’s license can save you money, but it does not make you money.


It can make you a living, but it does not make you money; and making a living is not a bad thing, not at all!


So if you don’t have your realtor’s license, then how in the world do you get started in real estate?


With no money?


After a global pandemic?


Here’s a guide to get you started.


How to Get into Real Estate Investing with No Capital


It’s 2022, we’ve gone through a global pandemic, and you might be thinking “there’s no way I can get started in real estate investing now!”


I do thousands of deals and in a lot of them, I don’t have to shell out my own money, no one is checking my credit score, and no one is checking my bank statements.



There are a few ways where you can get into investing in real estate, but we’re gonna talk about the two biggest ones.


Both of these use what we call other people’s money:


  • Money lenders (hard and private)

  • Creative financing


What are Money Lenders?

Real Estate Investing with a Hard Money Lender

What’s a money lender?


Exactly what it sounds like – these are people, sometimes companies, that lend money to people.


You can think of it like a bank, but this is not a bank that you’re going to; these are mostly private individuals who are lending you the money.


There are two main lenders – hard money lenders (HML) and private money lenders (PML).


Hard money lenders are usually companies that are in business to lend money for projects.


HMLs can easily be found through a Google search.


HMLs will either pay for an entire purchase – such as a house or a renovation – or they may pay for a portion of a purchase.


It all depends on the company.


Private money lenders are mostly individuals who lend money to people for their projects.


PMLs can be anyone from a family member, a friend, or complete stranger. They basically have the capital you need to purchase or renovate a property.



Now, the difference between the two is that some PMLs might ask for a soft credit pull; this is true if you’re working with a new PML.


But it all depends on the PML, as some won’t ask for credit checks.


Like any type of loan, these lenders need to be paid back, however, unlike a traditional bank loan, you can negotiate payment terms with each.


What is Creative Finance?


Now we’re talking about the good stuff!


In all honesty, I love creative finance, I’m known as the creative finance guy because I believe so strongly in this being a great way to not only buy property, but sell property as well.


So what is creative finance?


Creative finance is the ability to buy a house without having to use your own cash, your own credit, or a license.


Many of the homes I have bought which I have cash flowing to me, I’ve done through creative financing.


Two of the big buzzwords for creative financing are subject to and seller finance.


Both of these options actually put the seller in a better deal when selling their home than if they were to sell through a realtor.


Here’s why:


In both subject to and seller finance, the seller of the property gets more of the money from selling their home.


There’s no commission to place a property on the MLS or a commission to pay a realtor; in fact, in most cases, the seller walks away with more money than they sold for.


Using other people’s money (OPM) can work with creative financing as well, as you can use a lender to pay the seller for the home or for renovations.


And there you go.


It’s that simple!


Guys, getting into real estate in 2022 is not hard and anyone – anyone! – can do it.


And if you want to jump in, you should definitely jump in with the best creative financing community around.


My Subto members are beginners just like you or were beginners and now they’re mentors and teachers.


Come learn from the best and let’s goooooo!


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