How to Make $1 Million in Real Estate Even Without Money

By Richard Warner

I have been an investor and landlord for 5 years. When I got my official real estate license, I started as a First Time Homebuyer Specialist and have since received specialization certifications in Luxury Homes, Probate, and Divorce.

How can someone with no money make $1 million investing in real estate? People usually say you need money to make money, but over the years, I’ve seen folks go from zero to hero, getting rich beyond their dreams simply by investing in real estate. Here are the top three real estate investing strategies and how you can make it happen when you don’t have a lot of cash:

1. Buy and hold. Buy and hold means you buy a property and keep it for a long time. Over the years, the value usually goes up. For example, buying a house for $200,000 before COVID-19 might now be worth $300,000. You get to keep the difference, called home equity, and you can tap into it long before you sell the house.

I use this method with my rental properties. I take equity from one house to buy another while the tenant pays rent. The longer you hold the property, the more it’s worth, as long as you make sure the tenants take care of it.

2. Fixing and flipping. Fixing and flipping is a more hands-on approach in which you buy a fixer-upper property, fix it up, and sell it for much more than you bought it for. When buying a fixer-upper, you need to know which renovations to do and contact someone reliable to do the work at a low cost. If you need help contacting reliable contractors, I have contacts to recommend.

Just be careful with your projects and work with a good inspector because you never know what surprises might be hiding inside the walls. Flipping can be profitable, but you need to stick to deadlines to avoid losing money.

3. Airbnbs. These are great for vacation rentals, especially in tourist areas. If you know the rules for running an Airbnb, it can be a good way to make money. Just keep in mind that managing an Airbnb is a full-time job. You’ll need to be ready to be a landlord, which is a lot like hotel management. It can be super rewarding, but it does take a lot of work.

But here’s the big question: How do you get into real estate if you’re broke? Maybe you’re stuck in a dead-end job you hate, and you’re reading this because you know you deserve better. Let me tell you, there’s no get-rich-quick scheme in real estate, but it doesn’t take as long as you think, either. Here’s what you can do:

• Live lean. Crash with a family member or live somewhere with dirt-cheap rent. Work a steady job for about two years, even if it’s minimum wage. You might even consider getting a desk job at a real estate company answering phones, scheduling appointments

• Save, save, save. Whatever you do, focus on building two years of solid work history to help you qualify for a loan. You don’t need as much as you might think because I’ve seen people buy their first house with less than $2,000 saved. Also, avoid leasing a fancy car and instead save up for a down payment.

• Buy smart. Once you’re approved for a loan, buy a small multifamily property or a house with a granny suite. Live in one part and rent out the other to cover your mortgage, and you’re officially in the game.

Before making any moves, focus on getting educated and building your credit. While you don’t need a real estate degree, understanding the basics is essential. So, watch real estate videos, read books, and absorb as much knowledge as possible.

Next, connect with local investors by attending meetups and try to find a mentor who can guide you. I know you might face challenges like bills and student loans, but where there’s a will, there’s a way. Remember what Henry Ford said: “Whether you think you can or you think you can’t, you’re right.”

If you have questions or want to discuss your situation, contact me. Call me at (502) 338-2861 or email rich@howtoaffordhomes.com. I’m here to help.