Getting into the real estate game is still a solid way to grow your income. But how can you play if you don’t have cash upfront?
You might think you’re shut out of the real estate market if you don’t have a lot of money to invest by yourself. Don’t get discouraged — there is a way forward.
Our guide on how to invest in real estate with no money will walk you through the steps you need to take to make your dream a reality. Take notes!
Private Lending
Private money lenders are different from your usual loans. Instead of coming from a bank, they come from private individuals.
The trick to finding a private money lender is networking and really selling your idea. You’ll have to convince people one on one that you’re worth the time and money.
Ask relatives, friends, and local businesses to partner with you if you think they’re a good match. Remember, like with every loan, you’ll have to pay interest on the money you borrow.
House Hacking
This concept has been gaining steam in the financial independence world. It allows you to live relatively rent-free and make money off of an existing property.
Essentially, house hacking involves purchasing a multi-unit residence, like a duplex. You then rent the other unit to tenants while living in the property yourself.
The drawback is that you will become a landlord with all that that entails. Don’t take this on unless you’re ready to deal with tenants and any issues they might have.
REITs
Real Estate Investment Trusts, also known as REITs, are a great way to start investing with little money. They essentially work like stocks, pooling your money with others, and investing it.
There are several different kinds of REITs you can try, each with their pros and cons. Make sure you have a good real estate investment resource that can find the right one for you.
Government Loans
There’s a wide variety of government loans to help you get started in real estate investment. If you go down this route, do your homework to find the best match.
For example, you can get a USDA loan to find a cheap property in a town with a small population. An SBA loan is best if you’re looking for commercial instead of residential property.
Many times you can get a government loan for little money down and a low interest rate. That way you can invest what funds you have into boosting your property value.
Learn How to Invest in Real Estate with No Money
These are just a few options for those who want to learn how to invest in real estate with no money. As you can see, it’s a lot easier than you think to get started in growing your wealth through real estate.
Excited to start finding properties and boosting their value? Ready to invest in high-quality properties with high rates of return on investment?
Check out our luxury listings and make your dream a reality!
