by Jacques Poujade
There is this common perception that to get into the real estate industry, a person needs a ton of money. While it certainly helps to have as much money as possible to go into a venture like this, it’s not necessary to be absolutely loaded. Plenty of people have had amazing success with just $10,000 to start with.
How can a person become a real estate investor with so little money? It takes a little bit of creativity, but there are some options out there to consider.
Target very cheap properties
Everyone dreams of owning expensive property and making a lot of money off of that, but it’s not that realistic in the beginning. That’s especially true for someone who has limited funds in the beginning, so go for something that is generally inexpensive.
The downside is that a lot of these properties are not going to be in the best neighborhoods, and they are probably going to need some significant repairs and maintenance. It’s a place to start though, and build up from there.
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Tax liens and tax delinquents
Tax issues can affect real estate in many different ways. Some people get a tax lien on their home, and buying the lien is an investment strategy that many real estate investors have used over the years. It can sometimes take a long time to see this process work, but there is some opportunity there.
Tax delinquent lists also provide people with information on who might have issues going on right now. There is no shame in reaching out to those people directly and seeing if they are willing to sell.
Becoming a partner
There are many different ways to join a partnership group, where a person won’t even need $10,000 to get going with that. The downside is that you are working as part of the group, not as an individual, but the goal is to build up enough money so that branching off as a reality later on.
Someone who is a friend or family member is one way to start. Partnering up can become a very lucrative way to kickstart something bigger.
It has become very popular over the last few years to go the crowdfunding route. This is in some ways connected to partnering up, but crowdfunding allows several people to buy part of an investment opportunity to see where things go.
There are a couple of platforms and allow people to do this very easily. Investments are very low, and it allows people to see a lot of things that go on in the industry in general.
Not everyone is going to be crazy about going the crowdfunding route, but it is a perfect option for somebody low on money. If everything is done correctly, there is a chance that this becomes a very lucrative option for people who are trying to break into it. Don’t be afraid to explore crowdfunding and invest a minimal amount at first to see where things go.
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