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 Austin real estate!
It is not necessary for you to have wealth or financial backers to start investing in real estate. With some hard work, research, and only the smallest amounts to invest, you too can begin an investment portfolio featuring real estate! Many people quickly and steadily build wealth by making the right investments.
With crowdfunding, you pool your money to invest in something you can’t afford on your own. You could invest with many people and get a percentage of rents, profits from a sale, or any other income generated by the property. Carefully research before choosing a crowdfunding site – not all of them offer the same returns. Crowdfunding makes investment easy for anyone to begin investing in real estate. You don’t have to deal with tenants, rent, or repairs. It can be very appealing to collect the reward while someone else does the work.
REIT’s – Real Estate Investment Trust
Similar to crowdfunding, a Real Estate Investment Trust or REIT is a hands-off way to invest 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, but the rewards can be great as well.
If you want to invest a small amount and still be in control of your investment (as opposed to the options above), land investment is a great choice. Many people begin their investment journey with a single parcel of land. By purchasing low and selling high, you can create quick returns to reinvest elsewhere. The land market usually has less competition, so discovering a great deal isn’t as hard as when you are buying a house. This option is an excellent way to learn the ropes and begin building your real estate portfolio.
Wholesaling properties is an option for those who want to get started without spending any money. A property wholesaler finds great property deals and “assigns” the contract to an eager buyer for a fee. Making one deal won’t get you rich, but if you refine your methods, this can be an excellent way to see a quick profit. To be a successful property wholesaler, you need to be knowledgeable about your local market and have many connections with local investors. It can be a lot of work and is not for everyone.
It’s always best to go over your options with your lawyer and financial advisor before making any investment purchase. Get advice 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!
Do you want to learn how to start investing for less than 5k in Austin? We can help! Send us a message or give us a call today! (512) 345-9090