Investing in real estate is often seen as something that requires a serious amount of money. When you consider just how much property costs, you’d be right to assume so! A house is perhaps one of the most expensive purchases you’ll ever make in your life, so buying and selling them as part of your career obviously means that you have a decent amount of money.
You’ve probably heard of the saying that it takes money to make money. While this is certainly true if you want to make a lot of money, you might be pleased to hear that the world of real estate doesn’t require you to have a crazy amount of money just to make it a viable career choice. In fact, there are a number of ways to help you get started in real estate on a tight budget.
But how practical are those strategies? Is it something you should consider trying as a side hustle or potential career? Or is it just not practical enough for the majority of people?
Defining what it means to invest in real estate
First, let’s ask an all-important question; what does investing in real estate actually mean? There are a lot of people that consider it to be solely about buying and selling property, but that’s just one form of real estate investment. Other people might consider buying a property and renting it out, and others might even think about renting out a spare room on their own as a form of real estate investment because they need to make it more presentable.
Real estate investment takes on many different forms. It’s important to learn more about real estate investment so that you understand all of the different ways that you can make a profit and potentially start a career of it. With so many different ways to get involved in real estate investment, how do you choose what’s right for your needs?
It really depends on what you’re looking to achieve in real estate. Are you just looking for a bit of passive income? In that case, renting out a property is usually a good option. Are you looking to turn it into a career where you buy and sell houses on a large scale? Then you should start looking at becoming a realtor or even starting up your own business. What if you just want to buy and sell houses now and then as a side project to your construction job? In that case, you might find success in flipping houses.
With so many options available, it’s a good idea to consider them all and do a bit of research on each one.
Do you know anyone who’s also interested in real estate investment?
One of the most common ways to reduce the costs of real estate investment is to actually find a partner to join you. You could even work with multiple people if you’re willing to manage everything yourself or know someone that can spearhead the project. The idea of investing in real estate property as a group is really common and there are even professional services that allow you to invest a bit into their project to see a sizable gain in the future. Of course, this is much more different than doing it among friends or colleagues, but it can be equally as rewarding if done correctly.
So if you’re looking to offset the costs of real estate investment, it may help to look for someone with similar interests and goals as you.
Understanding what options you have available to you
Real estate has many different fields and it’s important to understand what options you have available to you. For instance, services like NFC Homes can be a good option if you’re looking to buy and sell plots of land instead of fully-developed properties. This can be a great way to get started with real estate investment because you’re not spending as much of your money on a fully-developed property.
Alternatively, you could also focus on flipping houses if there are a lot of undervalued properties near you. Perhaps there are run-down areas that have been abandoned but you might see that there’s some value in those properties. It’s perfectly acceptable to invest in those older properties, renovate them, then flip them for profit. This isn’t an option that’s available to everyone and it can be well worth considering if it’s open to you.
Fixing and flipping properties; how viable is it?
But how profitable is fixing and flipping properties? It’s certainly an option if you believe that there are undervalued real estate investments near you, but this is going to heavily depend on market conditions. Make sure you do a bit of research in your local area before you start. Look at how much houses are selling for, consider how much it costs to renovate, and take into account your personal skills and how they can make a difference as well.
Selling or renting out your home and downsizing
Another good way to get started with real estate investment is to actually downsize your own home to generate a bit of profit or even to sell your current home. People often find themselves in a situation where their current home is just too big to live in. Perhaps their children have moved out or maybe they’re just tired of maintaining a large home. This is a good reason to downsize and it can leave you with a considerable amount of money left over, especially if your current home has increased in value since you bought it.
You can use your current home as a way to learn more about real estate investment. You can learn about staging your home, you can renovate parts of your home to increase its value, and you could even consider renting it out instead of outright selling it. You have many options available to you if you’re willing to downsize to a smaller home, so if you have this opportunity, we highly recommend you take it.