You Don’t Have to Be Rich to Invest in Real Estate

new-home-1654911_640Today we have a guest post for you from Listen Money Matters to convince you that you don’t have to rich to invest in real estate.

There’s a myth attached to real estate investing that you must be rich to do it. Unfortunately, many people believe this to be truth and won’t even consider investing in real estate as a result. But in truth, you don’t have to be rich to invest in real estate. There are ways to go about it without having a lot of money to get started. Below I will list a few to help you get started.

Crowdfunding

You can invest in real estate even if you don’t have a lot of money. Crowdfunding allows you to add your investment money with that of other people so it can be invested in real estate. Everyone shares in the profits and gains a regular stream of income.

A Real Estate Investment Trust, or REIT, is one way this can be done. An REIT models mutual funds and gives investors the ability to diversity their investments through real estate. REIT’s are made up of a whole team of knowledgeable experts who work for you by devising a plan to invest the pooled money in property options that a single investor with limited capital would not be able to on their own.

The plan usually includes spreading the investment money over more than one property to increase the profit potential of your investment and lower the risk at the same time. They do charge fees, of course, so find out what those are before you sign any binding documents, but they do pay shareholders the majority of the profits through dividends on a regular basis and the profits are usually sizable. In addition, investing in crowd funded real estate can be done over the internet from the comfort of your own home.

Rentals

If you would rather invest in a single family rental, however, that is another option you could choose instead. There are even ways you can select a turnkey rental property in one of several different locations without having to put in a lot of research or work yourself. In addition, they offer help managing the property so you can purchase real estate in another part of the country without having to worry about how you will handle such things as maintenance or collecting rent allowing you to remain an investor, not a manager. To help you get started, you may be able to qualify for an FHA loan with only a 3.5% down-payment required as compared to a traditional bank loan which usually requires a 20% down-payment. As a first time buyer without a lot of money saved up to get you started, this is a huge advantage.

House Flipping

House flipping is another way to get you started with real estate investing if you are handy and can do a lot of the work yourself. To get started without a lot of money to invest, team up with a friend, relative or co-worker who has the capital to invest but not the know-how or time to do the work. Each of you can profit if you are careful with how you invest the money in repairs.

As you can clearly see, you don’t have to be rich to invest in real estate. Choose one of these options and you are on your way to building income for your future.

Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.

Save More Money in 2018

Coins 1523383 1920

Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
binary options, investing, investment, stock market

3 Things You Should Know About Binary Options

Binary options are taking the world by storm. With binary options you have the chance to make a substantial amount of money through... more →