You've heard the old saying "you have to have money, to make money," but what if that weren't always true? With some ingenuity and a little luck, you can easily invest in your first real estate properties.
Keep reading to learn how you can track down some cheap property and begin your real estate investment portfolio.
1. Get a Partner
When you are first starting in real estate it can be challenging so its a good idea to find a partner who already is an experienced investor. This partnership will work in a few ways. It will allow you to benefit from someone else's experience while only having to bring part of the capital to the project. If you don't have a lot of capital to offer, perhaps you have some construction experience or handyman skills that you can offer to the partnership.
No matter how you determine to make the partnership work for you, it's a great way for you to learn how to invest in real estate and avoid costly mistakes. If you decide to utilize this strategy, make sure to put an agreement in writing outlining the rolls of your partnership. This will avoid any future issues and any disagreements that may occur during the course of your project.
2. Start Private Lending
Private lending is a great way for you to put some of the money you have towards investing in someone else's real estate business. This is a great way for beginners who have no time, experience, or not enough capital for their own property to get started. Simply loan some of the money you wish to invest in another real estate investor who has the time and experience and cash in the rewards.
There are many real estate investors who might be looking for private lending and are willing to accept low amounts of $5,000 or $10,000 and are willing to let you join in with their property investments. As an investor, you may receive a nice interest rate or a small share in the profits and receive payouts on a regular basis. This is a great form of passive income that can help get your own real estate adventure started.
If you are interested in starting private lending, check out a database of single family offices that might have just the opportunity you are looking for.
3. Wholesaling
If you are on a tight budget but still want to get started investing in real estate then wholesaling might be the best option for you. To get started look for struggling sellers who might be looking to sell quickly and are having trouble finding a buyer. Next, negotiate with them about selling their property at a low price and once you have reached an agreement put the property on a contract.
Your next step is to find a new buyer who wants to purchase the property and sell it before the wholesale contract is able to expire. Since you are the wholesaler, you will now earn part of the profit that was made during the closing of that transaction.
If you are just getting started investing in real estate this is a great investment strategy. You are able to make money without having to spend too much of your own and it's great if you aren't looking to own the property. You also don't have to worry about fixing or remodeling the property or having to make mortgage payments.
4. Crowdfunding
Crowdfunding is a great way to invest in real estate with a like-minded group of investors. The group will pool their money together and either lend it or invest with other real estate property owners who have experience.
You will then return a profit thanks to the experienced investors' skillset and with will have minimal impact on your money. Depending on what type of investment is made, this technique can also be a low-risk way for you to get started in investing.
5. Renting on Airbnb
Renting out your property through Airbnb is an easy way to make a profit in real estate if you are on a tight budget. If you own your own home and have an extra bedroom, you can rent out your space for travelers who just need somewhere to stay for a short amount of time. You can also rent out your garage, basement, or attic to someone who might need some short term storage space.
This short-term renting strategy has really grown in popularity over the years with those who are interested in earning rental income but don't have enough capital to buy another property. Before getting started, make sure you are in compliance with your local city laws and regulations regarding short-term rentals.
6. Get Into House Hacking
House hacking is when you buy a multi-unit property, such as a duplex or triplex, live in one of the units and then rent the rest of them out. This is a simple way to earn some rental income from your tenants that will cover your mortgage payments, and you essentially live there for free. Depending on the total price of the property you may also earn a profit.
This is a great way for new investors to learn about the real estate market and how to be a good landlord before buying more property. When choosing applicants, make sure you give them a thorough background and credit check. After all, you will be living right next door to them and you don't want an uncomfortable situation resulting from bad tenants.
Learn More Today About How to Get Started Investing in Cheap Property!
These are only a handful of ideas of how you can invest in cheap property and get started on your real estate investing adventure.
For more investing tips and information be sure to visit our website daily! Visit the real estate section of our business blog right now for property investing, home improvement, and mortgage advice!
