Are there available strategies or options for investors with little money to start?

[daamole]

I have been following this forum for some time and have built up a deep interest in becoming a real estate investor. I have now fully realized that real estate investing is my path to creating lasting wealth. I know it requires a lot of effort, diligence, education and patience to become a successful real estate but I am willing to give it all.



Because of investment in a new business I am looking to understand what strategies/options are available for someone wanting to become an investor but is starting out with little money. Any guidance/information is appreciated.

 

[thejules]

I would suggest that you keep learning. Read, attend real estate specific seminars on investing. I would also start to pull your financial resourses together for enough to put down on your first investment. And I would fully document this first purchase with pictures and financial facts. Then you can take this to someone else whom could really benefit from your experience and maybe you could leverage your knowledge and experience with thier financial resources. This is what has worked for me. And continue to learn and attend seminars. Keep investing in yourself as much as the properties.

 

[bizaro86]

[quote user=daamole]I know it requires a lot of effort, diligence, education and patience to become a successful real estate but I am willing to give it all.




Real estate investing does require those things, but it also requires at least some money. One potential source could be a refinance/HELOC on your personal home. If you do not currently own a personal residence, I'd start by buying one (and you could use a low-down CMHC mortgage for this) and buy something that has either a suite or extra rooms for roommates (Depending on your personal situation and tolerance for living with other people).

 

[Thomas Beyer]

A few suggestions:

a) learn more .. observe more .. be more aware .. and the time will come when expertise and $s line up !

b) work for a firm that specializes in real estate

c) get money from 3rd parties that trust you, once you how some skills .. such as parents, grannie or brother-in-law .. then buy a house with that and sub-let a room or 4

d) co-invest with others



"Others" could be REIN members, private real estate syndicators or publicly traded stocks that invest in real estate (such as REITs or other firms)

 

[RussellWestcott]

Howdy, you sound like me when I first got started in Real Estate... I knew that Real Estate was going to be my vehicle to creating my long term financial independence. Now that you have realized this, what actions are you going to take to accomplish your goals? That was the question I asked myself, and after search for a few month, REIN` membership was the answer for me.



Regarding buying Real Estate with little money to start... there are many different ways to accomplish this, I and many REIN` members can attest to this, but the bottom line for me came down to the following:

• Learning more
• Surrounding myself with people who knew more than I did
  A personal passion to improve my situation, and a willingness to search for answers until I found what worked for me... then keep improving and learning more

You might want to check out an upcoming REIN` meeting to see if it will help you in your journey... if you would like more information on the upcoming workshops... click here. You can check out our calendar of events >> Click here... Or you can call our office and one of our property experts can help you 1-888-824-7346

 

[RobMacdonald]

If you don't currently own your principal residence, then start there. Try to look for a property that provides some additional income via a suite or shared tenancy. If you can buy well, then improve the property, you could do this again and again.



It's much easier to start out with low capital when you are buying your own residence. It's actually still possible to buy with no money down. It costs you on the interest rate, but it is an option.

 

[kboughen]

Many experienced investors with multiple properties and money to invest are finding it difficult to qualify for additional purchases due to recent changes to mortgage qualification rules. This has opened a new door for the inexperienced Investor without enough cash for a down payment, but with good TDS and credit history. These two types of individuals bring different strengths to the party and could potentially be good JV partners.



If this approach interests you, I suggest you confirm your strengths by going through a Pre-Positioning process with an experienced Mortgage Broker, once you clearly understand your strengths you will be in a much better position to attract a JV partner.

 

[dplummer]

If your handy, you might try buying a fixer upper & flipping it . Do this a couple of times (or more) to generate some capitial to get your real estate investing off the ground.



Doug

 

[dofinancial]

Hello Everyone ~ Stephen Coon here




I agree with everyone here, it seems many people are suggesting education, etc. It is very important to have an education before you start any new venture (real estate projects). I have heard of many people who are handy become joint venture partners with the "hands off" investors so they can flip properties. One thing about flipping is that you really want to have experience doing it, or make sure you are working with someone who has experience or you have a mentor that specializes in rehabs. There is my disclaimer!




With this being said, my cup of tea is the rent to own exit strategy. We find our tenants first, then buy the house that meets our investors and tenant-partners requirements.




To answer your question in more detail.........we often have many ways for our investor's to participate. I started out by finding tenant-partners and investors for other rent to own investors. (no money required but advertising) Now I am a rent to own investor & project manager. We are always looking for investors who don't want to use a lot of their money, they have some real estate knowledge and they can qualify for a mortgage. Try using your credit as involvement in a joint venture project if you can qualify for a mortgage.