I am considering getting into real estate investing in select markets, but have neither the credit nor the money to get started. I would like any suggestions on how to overcome this issue from any experienced investors out there.
I do intend to keep a sales license, and also learn how to appraise and inspect homes, but I do not intend to get a license in that.
What are the best ways to find money to invest in real estate?
14
Mar
TC
March 14, 2010 at 3:50 pm
Don’t invest money you don’t own. Get a job and save money until you have enough to invest. You shouldn’t even be considering getting into real estate unless you’re experienced in the stock market and have plenty of money, and won’t be totally devistated by a major loss.
Jonathan
March 14, 2010 at 3:50 pm
First off you should work on building your credit. You can always look for seller financing. Just make sure your first deal is a slam dunk because that will set you up for many more to come.
Yankee in London
March 14, 2010 at 4:46 pm
If you like real estate as an asset class but don’t have the money to buy properties yet, consider buying some kind of REIT (real estate investment trust) shares, which trade like stock shares. You won’t have to have a lot of cash to start, though you will of course need some!
As the first answer says (that answer gets my vote for best answer!), you don’t want to borrow heavily to invest in real estate unless you’re going to live in the property. Real estate prices move in both directions, and without putting money down, you can end up owing more on a loan than the value of the property you bought with that loan.
Andy
March 14, 2010 at 5:10 pm
Why invest in real estate now? We’re just beginning a down cycle. Build cash. Do some homework. Wait for an opportunity.