Investing in real estate means joining a huge industry that has a never-ending demand, getting extra income, and gaining a property.
Why wouldn’t someone want to invest?
Most times the reason is ……… No Money.
Here are some of the ways you can be part of the multi-billion estate industry with little or no cash;
- The Old Fashion Way – Save Money, Invest Later
If you have little or no money to buy a property with Afriprops, for example, a great way to make money and learn more about real estate is to hold off on investing and work first. Some good positions for this is that you could be a real estate agent, investor assistant, intern, or shadow a landlord to learn about becoming a landlord.
You can save up money while learning and then invest while being prepared financially and in knowledge.
Keep in mind: Eventually, you want to start somewhere. Gain as much information as possible but make sure you’re working somewhere that will not delay investing but, rather, put you on the path to investing. Remember, “Don’t wait to buy real estate, buy real estate and wait.”
- Live in the House First
Contribute available funds with partners or friends to build a house. Live in it and after one year, rent out the house. If you choose to go this route, make sure the rental income will provide enough cash flow to manage the rental and to live in your personal residence.
Based on the observations of your first property, see if you can expand your portfolio by repeating this process.
Keep in mind: These types of borrowing can require 0 to over 20% down – it varies a great deal depending on your relationship with fund providers. Note, also, that such loans can be quite difficult in this part of the world but it’s worth trying especially if you consider yourself financially prudent.
Wholesaling is a way to get involved in investing without having to buy or sell properties. As a wholesaler, you find someone who wants to sell their house before it goes on the market, find a buyer, and get a cut of the selling price.
Keep in mind: With wholesaling, actual work and persistence are required. If you’re not willing to take the time to network and look for buyers and sellers, this might end up as a one-time thing and not as a stable income (which should be the goal).
- Make it Personal
Using private money means borrowing money from a private investor, family member, or friend. They determine the interest rate, so there is more flexibility.
Keep in mind: The interest can be very low or very high depending on your relationship with the lender, the type of investment, and the terms of agreement.
Mind you, integrity as a beginner is vital and if you are an old hand, deliver projects on time.
- Hard Money Loan
Hard money should be called easy or simple money (in my opinion) because the process is quite basic. You obtain a loan without dealing with a bank, the term is short, and the lender is more concerned with the value of the property rather than your credibility. Should you not be able to pay back your loan, the lender will ensure the value of the property is worth more than the loan amount.
Keep in mind: These loans have high fees and interest rates. Unless you find a deal that will give you big returns quickly, this may not be the best option.
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