Are you looking to make your first real estate investment? Where are you going to find the cash to do it? We will show you some places that can provide the seed money that you need for your first big real estate investment.
Invest in Old Properties
It is easy to find old properties at relatively low prices. Buy these properties for dirt cheap, renovate them by yourself, and sell them at much higher rates. Your purchase price minus the sale price, after deducting the cost of improvements, is your profit. You can even rent out the property to get a steady stream of income, instead of doing an outright sale. This works best if you are a hands-on person who likes to renovate properties by yourself. However, the advantage is that you can own a property for a relatively small amount of money; even more, with the right strategies, you can earn money out of it.
Crowdfunding has become a popular option today. With this type of funding, many people come together and invest a certain amount of money. So, they all become joint-owners of the property. At the time of sale, the proceeds are pro-rated based on the investment and distributed among the owners. In the case of rent, the monthly amount is pro-rated and given to owners. Indeed, this is an ideal option if you want to become a real estate investor without borrowing or putting all of your savings in a property. The flip side is that you will need to be on top of the project to make sure that the money distribution is accurate. Additionally, the consensus of all of the owners is necessary for a sale.
Real Estate Investment in the Stock Market
If you do not like to buy or sell real estate properties, you can still take part in the real estate industry through stocks. Invest in REIT shares or directly in the shares of real estate companies to get a share of the profits.