There are 3 main ways to make quick money from property, in the current market, without big deposits, salaries or an inheritance.
These may surprise you. And most people don’t do them. Not because it can’t be done, but because they don’t know what they don’t know.
These are best suited to people with little or no money, with some free or part time spare to invest.
If you have funds and you’re busy, this article isn’t for you:
1. Joint Venture (JV) finance
Every deal is a ‘no money down’ deal with other people’s money. A wealthy person who’s busy, a business angel or dragon, a family member with savings or a future inheritance can all lend money which can be legally secured against a property that you can use as a straight loan or as a Joint Venture (JV) share, depending on investor type.
You part, half or fully own properties leveraging other people’s idle cash.
You do all the work (sourcing, letting, managing), they do all the financing.
With low interest rates, poor historical pension performance, new pension laws relaxed and volatile stock market, mixed with media hype about the property boom, property is a place where many people want to invest their money.
But most people don’t have the time or the know-how.
You find a good deal, your JV partner lends to you with a profit/ownership share (if they’re a high net worth/sophisticated investor), or they simply lend you money, both secured on the property.
2. Deal Packaging
If you view 10 houses and buy one, you bin 9 perfectly good properties for someone else. Just because they’re not cheap enough for you, doesn’t mean they aren’t well priced for others with less hunger for discounts, or less free time.
Just because you may not have much experience doesn’t mean they won’t look at deals you’ve found (rejected), and pay you for them.
A packaged deal is a deal you sell for a fee, for someone else to buy.
They pay you to source/find it (between £3,000 & £6,000 is normal), or pay you more to manage the process (purchasing, legals, refurb) where £6,000 to £10,000 per property is normal; more inside M25.
This is a quick way to a job replacing income to free more time to make more money. It’s also great for raising deposits to buy property. Just like Richard Linden who gave up a well paying job that kept him away from his family:
3. Rent to Rent (no deposit Multi-lets)
The biggest challenge for new investors with low funds getting into those high cashflowing HMO’s (multi-lets) is the amount of cash they need. What if you could have a 5-8 bed multi-let churning out £500 – £1500 a month with no deposit or high refurb/regulation costs?
Well Rent to Rent (also know as corporate letting, ‘managing’, let to rent), is an innovative strategy of renting from a landlord on a single let, and then renting out the house room by room.
Your landlord gets their rent, and you get a margin on the multi room letting. No purchase necessary.
No deposit needed. No mortgage needed.
Progressive Property students have made between £3,000 and £10,000 per month cashflow within a year from a standing start and without deposits using this exact strategy.