What do you think? That you need lots of experience to get started in real estate? What if I tell you experience is a plus, but that you can learn on the job? What matters more is your patience and tenacity. When people think about getting starting in real estate, excuses crop up, sometimes you hear someone say “I do not have enough money ” or ” I lack the needed experience”. Unknown to many, a basic knowledge is sufficient to get started.
So quit making excuses and start investing in real estate. Learn how real estate investment works and begin to create a portfolio. This isn’t easy, it’s not like playing a lottery, although it might end up making you millions. Hence you have to put in work to get your wealth.
If you want to make juicy passive income, then make real estate investment your side hustle, some say earn money while sleeping, this investment could help you achieve that goal.
Five Tips On How To Invest In Real Estate With Little Experience
In real estate, attitude makes a difference, so stop whining and get to work because excuses will get you nothing. Enough of the ‘but’ you can start your real estate investment. How?
Let’s examine steps that would equip you and help overcome uncertainties.
Master Leases and Leases Options
Yes, you don’t have to buy a house to kickstart your career in real estate, all you need to do is rent and start leasing. Leasing is when you rent a property and request from the owner to sublease the extra units to other tenants. Think about it, all you need is permission, owning the property isn’t a criterion to earn extra cash.
For example, if you rent a 3-bedroom apartment at a given price. And you find tenants to share the money with on a price tag from you. The extra payment will be for you.
House hacking is an easy way to gets into real estate. You could start a rental this way, all you need is to purchase a duplex, triplex, or fourplex. So, you live in one, and you rent out other apartments.
This technique works for anyone because you can make a little down payment to purchase the property.
You can obtain the financing through loan programs such as:
- FHA loan, which requires a down payment of 3.5%
- USDA, this is about 0% down payment
- Conventional loans, 3% to 10% down with mortgage insurance.
House hacking doesn’t need an experience to get started, on the flip side it helps you gather the skills to become a better landlord.
Borrow Equity Loan
This process involves you borrowing money to make a down payment, the interest that comes with this is not usually pleasing. If you have a home that is worth more than what you owe on it, obtain a home equity loan as long as you have access to it. This can put you on the real estate path.
A live-in house flip is a strategy that leverages the most profitable tax laws in the U.S. Turning your home into a flip is a profitable technique whereby you buy a house live in it for some years, move out and sell at an appreciated market price. You can also find, fix, and flip properties as a great real estate investment.
This does not come without some work and even risk which could be minimized by doing necessary repairs and waiting for the best time to sell.
If the funds are not available you can still venture into real estate, this time you need a partner, who would provide the funds while you put your knowledge to work.
The power of partnering will put you into real estate investment without your money. There are different ways to partner. But one of them is credit partnership.
A credit partnership is a partner who puts up the down payment for home after you’ve gotten a real estate investing deal. Then you could rent the property out from your credit partner, while the sublease management of the house is handled by you. This also offers you the opportunity to get a loan to purchase the property for yourself which you can end up selling at a higher price.
For partnership all you need is knowledge and drive to get into real estates, you might have to attend real estates meets up to get enlightened and meet potential partners.
Ready To Get Started In Real Estate?
In the end, experience in real estate investment is not paramount, while knowledge of real estate is a key factor for success this cannot be achieved in months so stop the excuses and get to work. These tips are not the only ones available if you want to get started in real estate. Try to explore other available strategies.
Did you enjoy this article about how to get started in real estate? Check out this piece I did on building passive income as a landlord.
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