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Real estate investments can be a lucrative venture, but it’s not easy to get into it if you don’t have a lot of starting capital. After all, buying property costs money–as much money as buying your own house! Not everyone has that kind of capital laying around, and they probably can’t afford a second mortgage as well. So how exactly does one get into the real estate market without having a serious amount of money available?
While it might sound hopeless, there are actually some strategies to help you build up your portfolio and capital so that you can start climbing the real estate ladder. In this post, we’ll be sharing some of those strategies to help you get started.
Try renting out existing properties
If you already own a property or even just have a spare room in your home, you could always try renting it out to people for a bit of extra cash. If you live in a popular area such as a tourist destination or have a place in the city, then people will likely pay you good money to stay in your spare room. It’s usually much cheaper for them than booking a hotel, and you can get a fair amount of money for something so easy and simple. You could consider putting up a spare room on Airbnb, or even putting an advertisement in a local classified advertisement.
If you have some extra space in your property, then you could even add an extra room or convert your garage or another building on your property into a guest house. In some cities, you can even rent out a parking space or garage. This will help you build up a bit more capital that will eventually lead to more lucrative real estate investment opportunities.
Consider different kinds of loans
Loans are another possibility when it comes to low-investment strategies to get into the real estate market. A good start is hard money loans. These are loans that offer a quick and flexible financing solution because they’re usually secured against properties. This makes them a great option for people that don’t have amazing credit scores, and it’s also good for large real estate purchases. If you think you’ve got what it takes to flip homes or become a great landlord, then you should consider a loan.
Services like FasterFunds Lending are great for hard money loans. The approval process is usually much faster than traditional loans, meaning you can quickly snatch up properties that you think will be a great fit for your real estate projects.
So whether you’re thinking of becoming a landlord in the near future or just want to expand your real estate investment portfolio, these are two great ideas that will help you get started with little to no capital. However, it’s important to remember that you’ll eventually need to invest real money to get more properties. But once you do, you’ll start to see the money rolling in.
