4 Ways to Buy a Rental Property Without Putting Any Money Down
If you’re looking for a way to make money and build equity, real estate is a great place to start. But the truth is that it’s not easy to find the right property and then find someone willing to rent it from you. And then there’s the expenses of maintaining your rental property, such as insurance and taxes.
Strategy 1 – Land Contract
A land contract, also known as a contract for deed, is an agreement between the buyer and seller of property where the buyer makes payments to purchase ownership interest in the property.
Strategy 2 – Rent-To-Own Land Contract
The idea behind the rent-to-own land contract is that the seller of the property retains ownership of the property and rents it back to the buyer. The rent will be paid over a long period of time and with each payment, a rent-to-own land contract will transfer to the buyer who has been paying rent.
Strategy 3 – Lease Option To Buy Agreement
Companies are beginning to use lease option to buy agreements as a way of managing the gap between inventory and demand.
This type of agreement is an alternative for the traditional financing options.
It allows the company to develop its own form of financing by allowing customers to lease their products until they are able to pay for them outright.
A lease option allows you to control your cash flow and retain ownership. It also provides flexibility which is helpful in managing inventory and demand gaps.
Strategy 4 – Land Trust Agreement
Land Trust Agreement, an agreement whereby a property owner transfers legal title to a trustee for the benefit of a specified beneficiary, typically with the intention of restricting the use of the property so as to preserve its natural value. The beneficiary can be any entity or person deemed appropriate by the donor and trustee. The intended beneficiaries are usually organizations that promote conservation and preservation of natural resources.