How to Begin Investing With No Money Saved

  • Home Equity Loan: You can typically borrow up to 90% of your primary residence’s value or 80% of your secondary residence’s value. The interest is tax-deductible and the application process is not as intense as it would be if you were applying for a conventional loan. This is usually the easiest and fastest way to access cash. Property must have equity.
  • Cash out Refinance: This process is very similar to applying for a mortgage and can take 30-45 days to complete. This type of transaction can be done on any property that you own that has equity.
  • 401K or IRA: You could borrow or withdraw money from these accounts in order to finance a real estate investing project. Another option would be to reduce the amount you contribute or stop contributions all together and instead save those funds for a down payment. Talk to financial adviser about specific rules or penalties.
  • Sell Something You Own of Value: A second car that you hardly drive, a boat maybe, or some forgotten savings bonds. Sacrifice and sell these items in order to finance your investment.

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