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How to Make Money in Real Estate with Little Investment

ENDVEST Oct 18, 2015

When it comes to investing money in real estate, investors and financial planners usually agree it is one of the most solid and promising investment options for long-term financial success. Making money in real estate almost always promises a big return on investment and is less volatile than other forms of investments. Once the initial seeking out of the investment and purchasing the property and all that entails is taken care of, investing money in real estate is a pretty easy hands-off way to make good money in the long run whether one chooses to simply be a homeowner or as a real estate investor.


Purchasing a home and owning property is a sound investment that everyone should strive for, yet often the bigger return on investment as far as making money in real estate goes to the real estate investor vice a homeowner. Investing money in real estate by borrowing money for a mortgage from a bank or mortgage lender almost always promises a strong return as long as the property appreciates in value. The only gamble there is that the property could create a loss. However, demand for property is such a constant because the amount of property will always be limited and demand will always be at an increase due to population growth and housing being a basic necessity, so purchasing real estate as an investment usually cannot go wrong. It’s a basic surety when it comes to demand and supply, and the tax benefits of owning a home is a major cost saving mechanism.


As far as making money in real estate as a private equity real estate investor, the one thing that should be strongly considered is that the promise of continued cash flow be studied to ensure it remain constant and hopefully continue to rise alongside inflation, at the very least. A mortgage loan is a basic win-win situation because the debt continues to decrease no matter how much the value of that property increases, which it almost always will offer an increase.


Now as far as coming up with the capital or money to invest in real estate is concerned, it is not necessary to always have a bunch of money at your disposal. Some smart ways of investing in real estate with little money are to work as a wholesaler. Basically that means someone does the research and finds good private equity real estate investment opportunities and then becomes the go-between with the seller and buyer. As the wholesaler, little-to-no money is actually needed because it only involves finding the deal, finding the buyer and then acquiring a fee for those wholesaler services—this option for investing can offer a gain from reportedly anywhere from $500 to several thousand dollars. One of the most lucrative new ways of finding private money investors for real estate is through crowdfunding. Yes crowdfunding is not just for small business projects where someone is searching for investment capital online, it is also becoming a highly popular and easy way to find private money investors for real estate investing.


Another way of breaking into real estate investing is to create a partnership in real estate investing—there are always wealthy people or organizations that have the capital (most-often referred to as hard money or private money) but not the time or inclination to do the work and will offer money on an often short-term high-interest basis. This is often not where you will find money to become a homeowner but to instead find great real estate investment deals that you can purchase and flip or refinance in a short-term manner. Even though the loan options are short term and usually always require high interest, it is not a problem as long as the property is a good investment. The person or organization loaning the money is not usually all that concerned with the borrower as much as they are concerned with property deal.  Simply finding that investor with the cash needed is all there is, and again this is where crowdfunding platforms such as Endvest.com can come quite handy and lucrative. And finally, another great way to make money in real estate with little money is to do the lease-option approach, where a buyer creates a deal to rent to own a property. All it takes is some extra paperwork with regards to a traditional rental agreement.