One nice thing about real estate investing is that anyone can do it. Whether or not you have good credit, a steady job, or money in the bank, there is a form of real estate investing available to you.
Granted, the more money you have, the more possibilities you have. Cash is and always will be king. That being said, cash is not necessary.
Here are a few different ways to invest in real estate starting with the most expensive and ending with the options that don’t take money or credit.
Investing in Apartment Complexes
Investing in multi-family real estate takes the most money of the options I am about to present, but it can be extremely profitable and is more passive than the others. You generally need at least $100,000 to either buy an apartment complex on your own or join with other people to buy a bigger one.
The main advantage is efficiencies of scale. Because all the units are in the same place, you can reduce the number of maintenance managers, leasing agents, etc that have to cover your properties.
Investing in Real Estate Secured Notes
Loaning money to credible investors to purchase real estate can be very profitable and very passive. Basically, you loan 70% of the after-repair value to an investor who buys the property to rent or flip. In return, you get anywhere from 6% – 12% on your money. The worst case scenario is that he doesn’t pay and you foreclose. Then, you take over a property with equity!
Hard Money Rental Real Estate
If you don’t have as much money, but have decent credit; you can begin investing in real estate by using hard money. Hard money lenders lend based on the investor value of the house and allow you to buy it with very little out of pocket if the deal is priced right.
Wholesaling
If you have no money and no credit, you can still be in the game! Simply find deals that are good enough that you can assign the contracts to an investor with credit and money for a fee. If you find a $100k house for $50k, you could sell the contract to someone for $55. You would have made $5k without doing a whole lot!
Conclusion
In conclusion, everyone can invest in real estate if they know how. Just learn the ropes and jump in!