DO YOU THINK YOU DON’T HAVE ENOUGH MONEY TO START INVESTING IN REAL ESTATE?

I have heard a lot of investors say to me that they don’t have enough money to get started in investing due to shortage of money.

Well isn’t the point of real estate investing to generate these funds by buying and selling houses?

When you get a good deal or a great investment property first go and look into the deal and then worry about how to finance it.

There are many ways that you can make sure to finance a deal and invest in it. Here are some:

SPLIT THE DEAL WITH OTHER INVESTORS: You can always find many other investors with whom you can split the deal and invest at a ratio of 50/50. However when doing so make sure that you have a written agreement stating how the profits will split. Also be careful when you choose an investor as your partner.

USE HARD MONEY: There are many private money lenders. They can lend upto 100% of the purchase price. However they need to feel secure in their investment, so if you only need $50,000 for a property that is going to be worth $100,000 – you may not need to put in any money. Just remember though – lenders are going to be conservative on their values so don’t overestimate the future value.

USE YOUR HOME EQUITY: If you already have your own home you can pull out equity in the form of Home Equity Line Of Credit or Home Equity Loan to buy an investment property.

USE A LEASE OPTION: A lease-option is a strategy used in real estate to buy homes from homeowners without actually taking legal ownership. Instead, the real estate investor signs a long-term lease with the house owners as well as signing a legal “option” to buy the property at a specific price in the future. The owners are not legally allowed to sell the property until the option period is up, and the investor gets to lock in his future purchase price as well. The investor can then easily rent the property out for cash flow or find a buyer to sell his “option” to.

As you can see that are a many ways to invest in a property even when you don’t have enough money at that particular time. If you are resourceful and the deal is worth it then there are no limitations to getting a good investment deal.

Editor: Neha Charan