The biggest reason most people don’t get started investing in real estate is because they think they need to have a lot of money to invest in real estate. However, this isn’t necessarily true! We outline some ideas of how to buy your first property even if you have very little money.
-As a first time home buyer you only need 5% of the total purchase price as a downpayment. On a$100,000 property, that’s only $5,000! Don’t have 5k sitting around? Almost everyone has 5k of things that they don’t need, get out there and sell it! Save 50% of your paycheck for the next few months. Its only temporary and soon you’ll have enough for a downpayment.
-Partner with a family member or friend. They can be the money partner and you be the managing partner. You put in sweat equity as your contribution to the partnership, and they fund the downpayment as their contribution. You then split any profits creating a win-win for both parties.
-Contact a rent-to-own operator and do a rent to own purchase. This often requires a small downpayment or deposit as well to lock you in, but this is a great way to get into a property if you can’t get financing from the bank. It allows a portion of your monthly rent payment to go towards the purchase of your home.
These are just a few ideas of how to get into your first property if you are low on money. Get educated and then get busy! Real estate is so rewarding on so many levels, you won’t regret getting into the industry. The only thing you might regret is not getting in sooner!