# How to Buy Income-Producing Real Estate Without Your Own Money or Credit
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-25
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Invest in Real Estate Without Your Money or Credit | Marco
Meta Description: Discover the secrets behind successful real estate investing without the need for personal funds or credit. Marco Kozlowski reveals proven strategies.
URL: https://financedigest.com/how-to-buy-income-producing-real-estate-without-your-own-money-or-credithtml

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By: [Marco Kozlowski](mailto:support@marcokozlowski.com)

Contrary to popular belief, it is a complete myth that you need money or amazing credit in order to replace your day job with passive income from real estate. In fact, some of the best and most prominent investors in the industry have mastered the craft of successfully investing in real estate without ever using their own money or assets. That’s because they know there are four primary ways to make money: working for someone directly, working for yourself, owning a _system_ that works for you, or having _money_ work for you – what most people don’t know, is that it doesn’t have to be _your_ money.

The good news is that, if you want to learn how to become successful in [real estate](https://www.financedigest.com/gold-london-real-estate-and-the-theresa-may-effect.html "GOLD, LONDON REAL ESTATE AND THE THERESA MAY EFFECT") without using your own money or credit, you’re in luck and you’re not alone. The only major caveat is, in order to do so successfully, you’re going to need to rely on a strong team (i.e., a network of agents, lenders, contractors, etc.) who know the industry, and a mentor who can help you learn how to [invest in the right properties](https://www.financedigest.com/brexit-no-obstacle-as-chinese-overseas-property-investment-doubles.html "Brexit no obstacle as Chinese overseas property investment doubles") at the right time.

One such mentor is Marco Kozlowski. For nearly the past 30 years, Kozlowski has not only been able to make his own real estate [business successful without using any of his own money](https://www.financedigest.com/how-to-save-money-on-business-tripsabroad.html "How to save money on business trips abroad") or credit up-front, but has taught thousands of people his tactics and methods to help them become successful in doing so, as well.

## Scout for investors or lending partners with access to capital

Before you can start buying real estate [properties without your own money](https://www.financedigest.com/ethical-property-investment-can-your-money-do-more.html "Ethical property investment: Can your money do more? ") or credit, the first step is to familiarize yourself with the types of lending possibilities at your disposal and to begin networking with them. To help kickstart your search, you need to learn [about equity partners](https://www.fortunebuilders.com/how-to-invest-in-real-estate-with-no-money-down/).

This will allow you to find a [property at an affordable price while your Equity Partner finances](https://www.financedigest.com/what-has-brexit-done-to-financing-your-dream-property-in-portugal.html "What has Brexit done to financing your dream property in Portugal?") it using their credit and capital.

Seller [financing is another strategy](https://www.financedigest.com/how-to-implement-a-holistic-digital-marketing-strategy-in-finance.html "How to implement a holistic digital marketing strategy in finance"). They own a property they are trying to sell and if you know how to position yourself and negotiate a mutually agreeable deal, you can likely use seller [financing as a tool for the benefit](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?") of all parties involved. This is because with seller financing, you are [purchasing the property](https://www.financedigest.com/questions-to-ask-yourself-before-purchasing-an-investment-property.html "Questions To Ask Yourself Before Purchasing An Investment Property") in question from its current owner via an agreement both parties draft and sign. This agreement, like one formally drafted by a bank or other [financial institution](https://www.financedigest.com/a-cloud-migration-guide-for-financial-institutions.html "A Cloud Migration Guide for Financial Institutions"), also includes interest rates, a schedule for repayment, as well as consequences in the event of defaulted payments.

Although, as Kozlowski tells us, the best type of lender you can choose when buying [real estate with none of your own money](https://www.financedigest.com/u-s-money-reserve-reviews-real-talk-about-diversifying-with-precious-metals.html "U.S. Money Reserve Reviews: Real Talk About Diversifying With Precious Metals") or credit is an asset-based lender.

“With asset-based lenders, you can get up to 70% of the [value of pretty much any property](https://www.financedigest.com/how-a-garden-can-boost-your-property-value.html "How a garden can boost your property value"). I spent months calling thousands upon thousands of lenders before I [finally figured](https://www.financedigest.com/french-inflation-revised-upwards-in-february-to-7-3-final-figures.html "French inflation revised upwards in February to 7.3% – final figures") out the right questions to ask,” says Kozlowski, “before I found one that would lend me 70% of a property’s value — not the purchase price, the _value_ — based on cash flow and property condition. So, for a [property valued](https://www.financedigest.com/manchester-better-value-than-melbourne-and-miami-for-off-plan-property.html "Manchester better value than Melbourne and Miami for off-plan property") at $100,000, I could get $70,000.”

## To get a “wholesale discount” on the property and create winning deals, look for sellers who exemplify one (or more) of the “Four D’s”

As Kozlowski explains, there are four primary motivating factors that might cause a homeowner or property owner to want to sell their [real estate](https://www.financedigest.com/ab-property-marketing-appointed-to-represent-spanish-real-estate-law-specialists-fuster-associates.html "AB Property Marketing appointed to represent Spanish Real Estate Law specialists Fuster& Associates") property as fast as possible and at a discount; sometimes, in a matter of 10 days or less. These “Four D’s,” according to Kozlowski, are:

- Divorce;
- Debt;
- Death, and;
- Displacement

“To put it bluntly, when two married people no longer want to be together, they get divorced,” Kozlowski says. “Savvy couples will want the divorced finalized to be out of the marriage as soon as possible, rather than try to get as much as they can out of it and drag the [process out for years](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind"). This means they’ll also want any shared assets like [homes or other real estate properties sold as fast](https://www.financedigest.com/at-the-home-of-zara-fast-and-slow-fashion-collide.html "At the home of Zara, fast and slow fashion collide") as they can.”

Debt, another motivating factor Kozlowski points out, is one that most Americans are familiar with. Perhaps a seller has a [coming foreclosure looming over their property](https://www.financedigest.com/birmingham-beats-brooklyn-and-brisbane-when-it-comes-to-off-plan-property-investment.html "Birmingham beats Brooklyn and Brisbane when it comes to off-plan property investment") due to debt, or a pending lawsuit against them requiring them to sell off their family home. If a seller can quickly settle a pending lawsuit and avoid months (or more) of legal battles and litigation in order to have greater peace of mind, they will want to accept as much as they can for that property as quickly as they can.

The last two “D’s” — death and displacement — often go hand-in-hand with retirement.

“Baby boomers have the highest amount of [wealth in the United States,” Kozlowski tells](https://www.financedigest.com/norways-wealth-fund-tells-firms-to-set-net-zero-emission-goals.html "Norway’s wealth fund tells firms to set net zero emission goals") us. “They aren’t getting any younger and they’re certainly not getting any healthier. Many of these boomers have a lot of assets and don’t have kids to pass them down to, or have descendants that they don’t want to pass a property along to. Similarly,” he adds, “the average American [moves every 5-7 years](https://www.financedigest.com/30-years-of-excel-lence-time-to-move-on.html "30 YEARS OF EXCEL-LENCE: TIME TO MOVE ON?"), so let’s call it ‘10’ for easy math. There are 330 million people in the United States: 10% of that is 33 million that are [moving at any given time](https://www.financedigest.com/move-over-tina-its-time-for-tara.html "Move over TINA, it’s time for TARA"). Estimating conservatively, only 1% of that 33 million will have [real estate](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities") you might be interested in, so now we’re at 330,000 people. That means some 33,000 people will be highly motivated to sell right now, either due to death or displacement.”

## Never overlook the value of amassing email lists

One driving factor behind finding the right properties to acquire at the right time — especially without using your own money or credit to acquire them — is to know _who_ the owner of the property is, even before the rest of the [real estate](https://www.financedigest.com/from-static-office-to-dynamic-brand-hq-five-steps-to-reviewing-your-real-estate.html "From static office to dynamic brand HQ: Five steps to reviewing your real estate") investment market does. One of the best and easiest ways to do this, as Kozlowski says, is to utilize your access to publicly available information (e.g., email addresses) and amass a list of owners to reach out to.

“When creating your list of potential [home or property](https://www.financedigest.com/taylor-fay-homes-recruit-cordant-projects-for-innovative-property-initiative.html "Taylor Fay homes recruit Cordant Projects for innovative property initiative") owners to reach out to, try looking for owners with at least two of the four ‘D’s’, albeit in a scenario where your offer wouldn’t create an ethical dilemma,” Kozlowski says. “These sellers are going through a [hard time](https://www.financedigest.com/savers-investors-and-expats-now-is-the-time-to-prepare-for-a-hard-brexit.html "Savers, investors and expats: Now is the time to prepare for a hard Brexit ") and don’t need you making it harder for them.”

Once you have a list of available email addresses made, you simply have to send out a single mass email and wait for responses. Bear in mind, however, that because these [owners’ properties are not listed in a traditional sense and are all “for sale](https://www.financedigest.com/zara-owner-inditexs-first-half-sales-surge-ahead-of-potential-slowdown.html "Zara owner Inditex’s first-half sales surge ahead of potential slowdown") by owner” properties, expect about 60% of all emails you send to go unanswered. Although, of the 30-40% who respond with interest, this is where you will need to rely on your own ability to negotiate with the property owner.

However, through using Kozlowski’s “70% rule” of financing mentioned above, along with the expertise and guidance of your mentor who can help you learn the skills to accomplish this yourself, it can be much easier to find a [private owner](https://www.financedigest.com/private-equity-firms-hungry-for-investment-opportunities-but-business-owners-must-be-cautious-2.html "Private equity firms hungry for investment opportunities, but business owners must be cautious") willing to accept that kind of sum for their property.

“If you don’t master the skills to be able to create [deals with large discounts,” Kozlowski says](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says"), “then it’s going to be much harder to buy the property without using your own money or credit. If this happens to be the case with a property you are interested in, it may be better to wait for the right person to [sell the right property at the right time](https://www.financedigest.com/best-selling-books-of-all-time.html "Best selling books of all time") and price instead.”

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