19 minutes ago
5 ways to start investing in real estate with just $5,000!
1. wholesaling houses
wholesaling houses is commonly promoted as the way to get into real estate with no cash, no credit, and no experience. it’s possible. it can even be incredibly profitable. this can refer to both flipping real estate contracts and wholesaling houses with rapid closings using transactional funding. in reality, there are costs. they may be small, but they are there. there are educational costs, operational costs of just being out there doing business, earnest money deposits, and drumming up a buyers list. this can be achieved with $5,000 or less out of pocket, but it does require a hungry hustler who isn’t afraid to get out there on the frontline and put in the time.
2. lease options
lease options can be an appealing choice for those who don’t have the credit to go get a mortgage loan from the bank. it offers the ability to control property with little upfront money and the choice to purchase it later at a predetermined price. the downside can be having to carry holding costs each month and putting up “option money” for the privilege of the choice to buy later.
3. tax liens
when property owners fail to pay their taxes on time, a lien is created against the home. this is a debt that accrues interest and must be paid off when the property is refinanced or sold.
4. real estate stocks
publicly traded real estate stocks and reits can appear to be an easy default way for individuals to passively invest in real estate.
5. private reits & real estate partnerships
there are also hybrid solutions that blend the ease and passive income perks of a stock with the financial advantages of directly investing into income producing rentals, flipping houses, and debt investing.