With ZERO capital, how can a newbie ‘get into’ property investment?

Hi Mark

I would like to change the question to "should a person with none of his/her own capital be allowed to get into investment property?"

If a person isn't savvy enough to have a disposable income, and to save it, then they should not be allowed to invest into an asset class which, at the end of the day, is going to provide somebody else with a home.

I see people all the time with no money looking for investors. Why would anybody in their right mind back them given that they have zero real experience and have not yet acquired the essential life skills of saving. Without savings, how can one expect to invest?

What really annoys me is the "Get Rich Quick" self proclaimed guru's who prey on these wannabes to reach for their credit cards to buy courses to teach the secrets of eternal wealth. I have yet to see a genuine success story but I have come across many victims of these scams, both wannabes and the unfortunates who fall for the BS and rent their properties to them with permission to sublet, or lend them money.

A person with money money, hence no financial acumen, cannot possibly manage a property portfolio. The first sign of trouble and they crumble under the pressure.

Can you imagine being a tenant of a landlord who has none of his/her own money?

Lease options, rent to rent etc. aren't necessarily a con ....... but they are certainly downright dangerous if they are operated by people with no money, no experience and no financial acumen.

RANT OVER

For now!
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If we knew how to get property for no money down, we would have a thousand houses each and be on a beach somewhere.

Yes it is possible to buy property with No Money Down, have a look at my colleagues book, which offers not only one but 12 No Money Down systems.

http://www.booksender.co.uk/#!no-money-down/c20o0

LMAO - in pile the guru's I mentioned!
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Cuckoo! Cuckoo! Cuckoo!

It was possible and worked very easily for liars & cheats for a time before the financial crash with self-certification, 120% loans with all legals etc., thrown in, easy, fee free re-mortgaging and double digit property price rises, but the financial crisis & new lending rules have stopped that - for now at least. Or has it??

Sadly, society seems to learn nothing. All those dodgy "get rich quick" merchants (just look at the MP's house flipping and expenses scandals), will probably have other, even more lucrative opportunities before long, after all, Government, corporate business & the banking industry has clearly learned nothing about responsibility - just look at the double digit pay rises they are awarding themselves, despite a debt increasing, flat-lining world economy.

Reply to the comment left by "r01 " at "22/10/2014 - 16:38":

I don't entirely agree with the "liars and cheats" element of your comment. In 2010 I wrote about the history of no money down and instant remortgages. This blog has been used in evidence in many trials and I have been called as a professional witness. Please see >>> http://www.property118.com/the-history-of-no-money-down-and-instant-remortgages-since-1992/
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Hmmm...having worked within the property education industry for the last 7 years, I thought I'd add in my twopennyworth.

In my experience, those who come to property investment as the 'answer to their financial prayers' are sorely mistaken. Whilst there are plenty of people who would 'sell you the dream' of acquiring/controlling property for nothing, this is indeed a very dangerous game. In my own property mentoring business. I pride myself on working only with people I KNOW I can help, i.e., who have the right finances and set-up. It takes an incredibly rare individual who has the right mind set and skill set to even consider getting into property without their own resources. As Mark suggests, why would anyone in their right mind lend to someone who has no 'skin in the deal' themselves? I have known a few individuals who have been able to accumulate a decent portfolio from a financially low starting point, but only because they had had an exceptional set of skills accrued from previous success, typically in either the sales or marketing industries. After all, it would certainly take these skills to bring people in to work with you on this basis!

My recommendation would be to stay well away from those who would promise you otherwise. The 'need for money' will actually repel it and property is NOT a vehicle to get yourself into from this perspective. By all means, if you have a particular passion for property, get involved in other ways, learn from the 'ground up' and build from there. If not, then follow your passion to accumulate your own resources, then get going. 🙂

Reply to the comment left by "Mark Alexander" at "22/10/2014 - 09:44":

Brilliant words Mark.

If we han't got a few quid, or been able to save a few quid, how we gonna' cope when times get hard-Which they do the odd time-Or quite often as some of us know.

I don't know how other people did it, but this is my experience.

I worked hard from the age of 16 in various jobs and trades. From the age of 12 I had 2 paper rounds, I also worked in a factory during the 6 weeks summer holidays aged 14 and 15. I was born in 1954, in those time and with the parent's I had (immigrants looking for a better way or life) there was no "go to college, or university, become a doctor etc" . No career advice at school as there is now, it was leave school and get a job, any job to pay your keep!. Both my parent worked in menial jobs (factories) all their lives without ever claiming assistance, they retired at 65 to "go back home", they both died within a few years. They sold their home to a friend/acquaintance for £1000 more than I offered them! I think home was no longer home after 40 or so years and with no every day activity the died of boredom.

I wanted more from life than work, pay the bill, but don't really live life. no new car (only bangers) or holidays etc I started looking for ways to get out of the rut and improve our lives, when I came across self help books so I read whatever was recommended. How to win friends and influence people, Jonathan seagull etc, I would recommend a book called RICH DAD POOR DAY to anyone over 15. I made my kids read these books as older teenagers, they both now own their own home and run their own businesses.

Without any capital or savings, even with a well paying job to meet the new criteria with mortgage companies it would be hard to obtain a residential mortgage let alone BTL mortgage.

Do you need experience? I didn't have any all, I had was a desire for more. Did I have help or tuition, NO. I had 36 odd years of hard work, a mortgage on my residential house and a desire not to retire at 65 on a pension that my wife and I could not live on.

So to answer the question above, can you get into property with no money or funs No sorry Henry loopholes are closed. Do you need experience No. Learn from others, the internet and this site.

Don't want to bore you all but if 3 people say tell me more, and ask any questions, I will tell the rest. The majority of landlord are not RICH people, but they probably like me started with a calculated risk, no help, mentor or experience.

Just lately I've disagreed with Mark Alexander a few times but with his opening posting on this thread I think he's spot on.

As for Rich Dad Poor Dad (mentioned in the post immediately above) I was recommended to buy the book when I was thinking about packing in my job and starting my own business. It was an incredibly motivating book and I'd recommend it to anyone. And yes, I was bold enough to put much of it into practice.

Sadly I was recently invited to a property seminar which was marketed under the Rich Dad Poor Dad brand and it was the old "we'll help you get credit cards even if you've got a poor credit history, then show you how to max them out, use the money as a deposit and buy property so you'll be set up for life as long as you pay us many hundreds of pounds for the privilege" routine.

I was so disappointed that Robert Kiyosaki put his name to what can, at best be described as a very high risk strategy to earn himself a few more bucks.