Everyone knows that if you want to build up true wealth in this world, you need to find ways of making passive income. While there are many different ways to try and create wealth, there are few that lead to success quite as often as real estate investing, as most financial experts agree.
Of course, many people feel as if they need more finances than they have available in order to take advantage of this kind of opportunity. This simply isn’t true! There are many ways to invest in real estate with no money.
Real estate investing takes many more forms than you might initially expect. There are many more opportunities to take advantage of out there, even if you don’t have as much in your bank account as you’d like. Read on and we’ll walk you through what you need to know.
Investing in Real Estate Trusts
If you don’t have enough money in your bank account to put down a down payment on a piece of property, you may think that’s the end of your real estate investment dreams. It doesn’t have to be so!
You can also invest in a number of real estate trusts that can help you to build up the income that you desire. Real estate investment trusts are collections of companies that own or finance income-producing real estate.
These trusts work much in the same way that a standard mutual fund might, but with the source of your investment more linked directly to the housing market.
Investing in a real estate investment trust means you get to enjoy a share of the produced income of these real estate investments without ever having to directly buy or manage a piece of property yourself.
Not only does this make it a more affordable option for the average investor, it also makes it much easier. You don’t have to sink all your time into managing a property, and can just reap the benefits of having experts in the field do it all for you.
This is an incredibly popular form of real estate investing. Millions and millions of Americans invest in real estate investment trusts and they make up a good amount of existing 401Ks and various retirement plans.
Taking Out Loans
Still more interested in purchasing physical property yourself? Even if you don’t have enough money in your personal bank account at the moment, it doesn’t mean you have to give up on the dream of owning this kind of investment.
There are many different ways to take out money and use it to invest in real estate. If you take out a loan, you can use the profit that you make from your real estate investment to help pay the loan back.
There are all sorts of loans that can be used to purchase a piece of property. You can get a hard money loan from a traditional lender, such as a bank or credit union. Even if you don’t have too much money in the bank at the moment, a solid credit score and a strong source of income from employment can be enough to get approved.
You might even be able to get the funds you need from a private lender – what is a private lender? Someone that works outside of a financial institution that lends money to people or businesses.
A private lender may be open to working with a borrower even when a bank isn’t.
There are also loans that the US government provides that can make this process a whole lot easier. These loan programs are specifically designed for real estate investing.
If you’re a veteran or former service member, you can obtain a VA home loan that make getting property extremely affordable. VA home loans require $0 as a down payment, so you don’t need to have any money on hand in order to get started.
The interest rates on these types of loans also tend to be extremely favorable.
The government also offers rural housing loan programs that allow citizens to purchase and improve existing residences. There are certain qualifications you’ll need to meet, but if you do, this can be a great way to get an affordable home in a rural area.
Form a Partnership
Want to start investing in real estate but don’t have the money you need to do it all on your own? Investing in real estate can be a little easier to manage if you do it with other people involved.
If you have friends, family, or co-workers in your life who have a similar desire, you can make a plan to go in on a piece of property together. You’ll split the costs of purchasing and repairing the property, then you’ll split the profits as they start to come in.
This can be a great way to get around the high initial costs associated with real estate investment. It can also be somewhat complicated and will require more focused bookkeeping and a fair amount of careful communication.
If you’re going to go with this route, you’ll want to speak to an attorney and ensure you’re doing so in a way that won’t get anyone in trouble or make things too confusing come tax time.
If you can get all the legalities worked out, it can be a great way to make a profit with less money on the table at the beginning.
How to Invest in Real Estate With No Money
If you’re a little less than financially well-endowed, it can be frustrating to think of how to grow your wealth. Lucky for you, there are a number of ways you can learn to invest in real estate with no money. The above are some of the most popular and are all worth considering.
Need more real estate advice and info? Keep scrolling our blog for more.