Even the largest real estate empires were started with only one investment. Many people are even able to start investing for less than 5k. In our latest post, we will discuss some ways anyone can begin investing in New York real estate!
Real estate investment can start with only a few dollars in the bank. Many people are able to quickly and steadily build wealth all by making the right investments. You don’t have to be rich or have financial backers to get started. With a little hard work, some time spent researching and only the smallest amounts to invest, you too can begin an investment portfolio featuring real estate!
Crowdfunding has become a much more popular way to invest. With this structure, you would pool your money and invest in something you wouldn’t be able to afford on your own. For example, you could invest with many people in a development and get a percentage of rents, profits from a sale, and any other income generated by the property. Do your homework before choosing a crowdfunding site. There are many choices out there, but not all of them offer the same returns. Crowdfunding makes investment easy for anyone to get started with real estate investment. There is no managing tenants, collecting rent or dealing with repairs. You are able to collect the reward while someone else does the work which can be very appealing to investors.
REIT’s – Real Estate Investment Trust
Similar to crowdfunding, a Real Estate Investment Trust or REIT is a hands-off way to invest your money in real estate. A REIT is a corporation that owns a portfolio of real estate. This corporation receives tremendous tax breaks if they put a large portion of their profits back into the hands of shareholders. REIT’s might appear to be a bit risky in a volatile market, however, the rewards can be great as well.
Often overlooked, land investment is a great choice for someone who wants to invest a small amount, yet still be 100% in control of their investment, (as opposed to the options above.) Many people begin their investment journey with a single parcel of land. By purchasing low and selling high, you can create quick capital to reinvest elsewhere. There is typically less competition in the land market, so finding a great deal isn’t as difficult as when you are buying a house. Buying land is an excellent way to learn the ropes and begin building your real estate portfolio.
Becoming a property wholesaler is an option for people who want to get started without spending any money. A property wholesaler will find excellent property deals than “assign” the contract to an eager buyer for a fee. You won’t get rich from making one deal. However, if you refine your methods and learn how to find the best deals, this can be an excellent way to see a fast profit. It’s not for everyone, and it can be a lot of work. You should be well versed in the local market and have many connections with local investors in order to become a successful property wholesaler.
Before making any investment purchase, it is always best to review your options with your lawyer and financial advisor. Get advise from your accountant and learn about how your taxes will be affected. You really can start investing with little to no money down, call today for more information!