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5 Ways to Invest in Real Estate with Only $5,000 part 4


the second hack: 

that i use for getting in on a property with less than five thousand dollars is a rent to own now you've seen these rent to own signs right it's leasing a home with an option to purchase it and one of my favorite strategies is literally to go through the for rent section call up landlords and basically say hey i want to rent your house but i'd like to eventually buy it from you is that something that you're open to can i lease it for a longer period of time and down the road actually purchase it and if they don't know what they're doing they'll say yeah and they won't even ask for a down
payment if they're a little bit more knowledgeable they might ask for three four or five thousand dollars as a non-refundable down payment and if you do it right that's a house that you could sublet out to somebody else to actually move in and make the payments on and you could create some positive cash flow you could live in this house yourself but bottom line is it's a way to get into home creatively you're basically sidestepping the banks and saying you know what i'm not going to go through the qualification process i'm not going to qualify for your down payment you're not going to look at my credit history and my job history for the last two years.
i just found a workaround to get into real estate and i'm gonna tell you that often that is exactly how i buy homes i learned how powerful this strategy was when i was working with one of my original mentors his name was greg and he was showing me the ropes of real estate and one day he said hey chris you should really check out this property i have in the city next door because it's been great for me it's had great cash flow i think you should look at buying it from me and i'll give you a really good price on it so i went with them i checked out the home and sure enough it had like an accessory apartment which i could basically rent for a superior cash flow everything looked really good but i didn't really want to go through the bank to buy it i was practicing a lot of what's called creative real estate which is banking and money workarounds just like i'm teaching you right now and i said you know what greg you've made a lot of good money on this house and i appreciate that you're going to get me a good deal on it i want to do a lease option let me own this house through a rental agreement with you for the next five years and then i'll buy it from you greg said yes so i agreed to pay him a certain amount every single month a thousand dollars i rented out both sides and brought in fifteen hundred dollars a month so i was making the extra five hundred dollars every single month five years later it was time to sell and i made tens of thousands of dollars greg got his money out when i sold it i got to make great money when i sold it but i also made really good money along the way and here's the cool part i got into that house for way less than five thousand dollars .