To read the part 1 of this real estate investment series, click here.
Most individuals envision owning a rental property or commercial real estate when they consider investing in real estate.
While these are excellent strategies to begin investing in real estate, they may not be the best options for everyone.
Fortunately, there are also additional possibilities for getting started in real estate investing with little money. There are opportunities accessible regardless of your budget or the amount of time you have available to put into managing your real estate assets.
Here are 3 ways you can use to Invest in Real Estate with little money
- Crowdfunding.
- The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method.
- Deal Hunting.
- Crowdfunding
This is an approach that allows you to add real estate to your portfolio without having to invest a huge sum of money.
You pool your money with several other small investors through internet crowdfunding platforms to invest in large commercial projects acquired and managed by experienced real estate developers.
It’s a fairly passive type of real estate investing in which you lend money to a real estate developer for a specific project with a set duration.
- The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method
This is a real estate investment strategy that entails purchasing a home that requires extensive repairs (at a reduced price) and restoring it to rental standards.
You then find tenants to cover the acquisition and ownership costs, and refinance it into a loan at the After Repair Value (ARV) so that you may use the cash to buy another distressed property and repeat the process.
You buy, rehab, rent, refinance, and repeat until you have the appropriate size portfolio of rental properties delivering monthly passive rental income.
Please note that this method may not be as easy as said in this post, so you may want to do more in-depth research on how this works before you opt for it.
- Deal Hunting
You need little or no money to “deal hunt” and you avoid all of the risks connected with purchasing an investment property yourself.
As a hunter, you seek for and identify investment opportunities. Here, you spend a lot of time driving about or just scouting, looking for properties that appear vacant or in need of repair.
You are supposed to conduct preliminary research, take a few exterior images of the property and neighborhood, and then pass the leads on to wholesalers or repair and flip investors in exchange for a finder’s fee. You can even make some side cash from doing this.
While money isn’t required to begin started, the perk is, that you will need to build a network of investors to whom you can send your leads and negotiate a fee with each.
Now you see that it is possible to invest in real estate with little money right? So, quit worrying and try to employ any of these ways as soon as you can so that you can begin to see results soon enough.
We also shared other ways to invest in real estate with little or no money in the part one of this series, click here to read it.