The average price for a property in the USA is over $500,000. This leads many people to think that unless they can find a bargain property, they won't be able to invest in real estate.
This isn't necessarily true. In fact, you can invest in real estate with even a modest stable income. This article lists some of the best ways to get into real estate investing on a budget.
Wholesaling is a great way to get into the real estate industry on a limited budget. Wholesaling is when you find discounted properties and pass the contract on to another buyer. In doing this, you charge a fee.
Basically, wholesaling is acting as an intermediary. You help to connect sellers with investors. While this method might not make you a lot of cash, its strength lies in helping you build up a network and learn the market. As an experienced wholesaler, you can build up your knowledge, enabling you to get into actual real estate trading at a later time.
Real Estate Crowdfunding
This is another viable option for those who want to invest in real estate but don't have significant capital. Crowdfunding platforms allow groups of people to invest in real estate collectively. Essentially, participants pool their resources to purchase a property.
With a modest investment, you can participate in this crowdfunding. When you do this, you'll share in both the risks and the potential rewards. Of course, you'll need to research the crowdfunding platforms first. You'll need to ensure they're trustworthy.
House hacking is another creative way you can get into real estate investing. The way the strategy works is simply you buy a multi-unit property (for example, a duplex), and then you live in one of the units.
You then rent out the remaining units. The rental income you get from the other units will help pay for your mortgage and living costs.
The great thing about this method of real estate investing is that once you've gained equity and experience through house hacking, you can then use the property as leverage on further investments.
Partner With Investors
Another way you can deal with real estate prices is by partnering with existing investors. This is a great way to break into the market if you have limited funds. Simply try to find experienced investors who are prepared to share the financial burden of investing in a property.
For example, your partner might bring most of the funds and experience. On the other hand, you might contribute time and local market knowledge. Or, perhaps you have a lot of DIY experience and can contribute towards renovations.
The great thing about this kind of partnership is that it helps you to network. This could open up doors for you in the future.
Now You Know About Real Estate Investment With Little Money
As you can see, you don't need to have a huge amount of capital available to get started with real estate investing. In reality, it's possible to do real estate investment with little money.
When investing in real estate, working with a property management company makes sense. Contact us today and let us know how we can help you.