How to invest in real estate without money?

Making a real estate investment is not reserved for people with substantial assets. It is possible to invest in real estate without contribution, and without excessive salary.

Some borrowers have embarked on a real estate investment with a simple minimum wage! The real estate purchase argument is often decisive with bankers, because it provides a source of regular income (rent) which will allow you to repay your monthly payments.

However, investing in real estate without money requires a bit of methodology and strength of conviction , to convince your banker to accept your file.

Are you planning to buying a house in Collioure but don't think you have the budget for the investment?

Discover all our tips for investing in real estate without money!

Investing in real estate without money: how to build your project?

Tax advantages offered to real estate investors

Whatever your project, discover the tax benefit that suits you best.

Invest in new

• Pinel law : it can reduce tax between 12% and 21% of your investment. To qualify, certain conditions relating to the property, its location or the rental period must be met.

• Censi-Bouvard law : it offers relatively the same service as the previous law, but is aimed at owners of real estate with services. The tax-deductible part represents at least 11% of the amount excluding tax of the investment. To benefit from it, you must acquire, before December 31, 2022, new accommodation in a residence with services for the elderly, disabled or students, or in an approved reception and care residence. You must also commit to renting your property for a period of 9 years.

• LMNP/LMP statutes : depending on the status you choose, you can deduct your land deficit and your various charges, charge depreciation on furniture and real estate, and possibly benefit from an exemption from capital gains. The choice of status is made according to the amount of rental income received. If you receive less than €23,000, you are considered a Non-Professional Furnished Lessor (LMNP). Beyond this threshold, you will be a Professional Furnished Rental Company (LMP).

Invest in the old

• Malraux Law : this law gives you the possibility of reducing your tax bill thanks to a tax reduction by carrying out work on your property. The amount will depend on the geographic location. You must also commit to renting your property for a minimum of 9 years. Contact your bank to find out more.

• Historic Monuments Law : this is aimed at owners of properties classified as Historic Monuments or listed in the Supplementary Inventory of Historic Monuments. This system can authorize you to charge the amount of the renovation and maintenance work as well as the associated loan interest.

Request personalized loan offers

Once your project is clear, it's time to approach several banks or credit organizations. In this crucial step, you simulate the loans you can claim depending on the amount of the property.

We advise you to request the same study from all banks. This will allow you to draw up a coherent comparative table based on similar criteria. It will then be easier for you to select the establishments offering you the best rates and conditions for your project.

Make a profitability study and opt for a region with a high rental yield

First, we advise you to select the properties that interest you the most according to their locations. Be aware that the location of a property is the criterion that has the greatest impact on its price.

Then, to invest in real estate without money , it is fundamental to calculate the profitability of the property. This data defines the performance of your rental property investment. It includes the income generated by your accommodation once rented, as well as the price variation of the accommodation in which you are going to invest.

To choose a location with high potential, we recommend that you cross-reference macroeconomic and microeconomic data. Does the city that interests you plan to create new homes or develop its neighborhoods? Ask yourself all the questions to better define the interest of your investment project.

If you want to invest in real estate without money, look for a property in good condition with little work to do . You will be able to make your rental investment profitable more quickly, but also pay the monthly payments thanks to the rent collected.

Get to know the regional real estate market by soliciting agencies

It is not always easy to find precise information on the district that interests you, the type of property sought by future tenants or the prices charged. Hiring an agency will save you time.

A source of valuable information, a real estate agency will help you make the best decisions based on your project.

Would you like to focus on buying an apartment in Collioure ? Our teams are there to advise you in your projects.

How to negotiate with your banker to invest in real estate without money?

There are several tips to remember to negotiate well with financial institutions.

• You have the possibility of producing a contribution , even minimal? Highlight this condition, it is very likely that the bank is sensitive to it.

• Inform your bank of your debt ratio . If your rate is less than or equal to 33%, you are well in debt: let it be known, it is an asset not to be overlooked for a loan without money. ( how to calculate your debt ratio for a mortgage )

• Showcase your managerial abilities . You have no overdrafts, no payment incidents, no current consumer credit? Expose it to reassure your banker.

• Highlight your CDI . It is a sign of financial stability that will give strength and weight to your case.

• Demonstrate the rental profitability of your project . A realistic and detailed plan will convince your interlocutor.

Go around the credit institutions

The objective is to find an establishment likely to grant you a loan. For this, playing the competition is your best option. Using written evidence will support your negotiation.

It is sometimes possible to find 110% credits that cover notary fees. This step takes time, but it is the key to the success of your project.

You can also hire a broker to take care of this part for you. His expertise could get you a loan at zero interest! Don't forget: with a solid file, your application has every chance of being accepted.

A rental property investment without personal contribution is a project accessible to all , even to borrowers who only earn a minimum wage. It's up to you to show tenacity and strength of conviction to build up your real estate assets!