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One reason for not buying property that many people make, especially younger people is that property is so expensive and they have little money saved or earn a low income,so I thought I would take a minute to tell you 3 easy ways to invest in property with little money down.

1. Vendor Finance
Find a motivated seller who is mortgage stressed, or else wouldn’t get much back if they were to sell it the conventional way. There is legal paperwork that allows you to take control of the property much like a bank would, without you taking title. You can then rent out / add value / resell on vendors terms to make a profit. Usually you could do this option for less than $10 000 depending on the deposit you leave with the vendor and how long you have to pay their mortgage until your exit plan kicks into place.

2. Renovations
This strategy is a little riskier and probably best with those who either have the cash reserves in place or else can get a mortgage if need be. However the strategy is that you find your perfect renovation property as per your criteria. Negotiate with the vendor for an extended settlement ie. 3 – 6 – 9 months with early access. (you will probably end up negotiating to pay their rent or something similar in the mean time. With no holding costs you can go in and renovate it, add enough value to it that you have instantly gained 20% equity and then refinance with the bank before settlement. The result is a house with no money in the deal and 20% equity.

3. Partner up

Find someone who has money but no time, and in exchange offer them your time and skills. This could be as either a money partner of joint venture. In a money partner agreement, the partner puts in a certain amount of cash at a higher than normal interest rate for a set period of time. In a joint venture they are an actual partner in the whole deal and will want to make some decisions too. Usually any profits will be split 50/50 or as per your agreement. This allows you to use someone else’s money to do your own property deals and take a slice of the profits for yourself.
These are just 3 easy solutions to the little money problem and there are a whole lot more out there. As Steve McKnight once said, “Don’t ever let not having money be an excuse for not doing something” I would love to hear if anyone else has any little money down strategies or success stories.