Many people mistakenly think they need a ton of money to invest in real estate. You don’t have to be Donald Bren or Sam Zell to invest in real estate. In fact, you’d be surprised at how little you actually need to get started.
How much money do you need to invest in real estate?
Keep reading to find out.
How Much Money Do You Need to Invest in Real Estate?
The short answer is that you probably need a lot less than you think. Every investment is different and will require you to have a different amount for an initial investment. You could end up paying as little as a few dollars or make a major investment of millions.
There are ways to lower the cash you need in hand to make your dreams of being a real estate investor come true.
You may have collateral that can be used towards your down payment and cut down on the amount of money you need to have to close the deal. The better your credit is when you apply for a mortgage, the better position you’ll be in to negotiate the financial terms of your real estate investment.
Two for One Investment
Many people start investing in real estate with a property that allows them to save money and earn money at the same time. This may mean buying a duplex or multiple dwelling property and residing in part of it while having tenants cover expenses through rental payments.
The potential income from rental properties can help minimize the initial amount you need to pay as you have a guaranteed income to cover the mortgage payments and taxes.
You don’t have to buy a huge property and become a real estate mogul to make investments in real estate and take the reins for your own future.
Crowd sourcing or multiple investors for one income property is more common than you think. In fact, innovative new platforms like concreit.com have made it possible for you to become a real estate investor with just a few dollars rather than a few million.
Other investors decide to go into business with family and friends with everyone having a share in the property. This is a popular choice for seniors who are wanting to have real estate investments and own their own home but don’t have the financial stability to do it alone. Many seniors are reliving the Golden Girls show by choosing to live together and cut down on bills while avoiding the loneliness and uncertainty that can accompany the twilight years for widows and widowers.
Real Estate ETFs
Exchanged traded funds are another way of investing in real estate. They are similar to mutual or index funds because you can diversify your investments of stocks and bonds rather than simply investing in one property and having all your security relying on one piece of property.
Investing in Real Estate Can Be Your Reality
How much money do you need to invest in real estate? You can be the judge of that because there are enough options out there for ways to invest that you can choose how you want to do it and how much money you want to invest.
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