Real estate is the proper investment to get into and this is due to the benefits that can be gotten from it. For example, an investor is open to equity build-up, depreciation profits, land appreciation, and leverage. But can you invest in real estate even with your low income?
1. House Hacking:
From the surface meaning, you may think house hacking is house stealing or any other negativities that surround ‘hacking’ as a term. But far from it, house hacking in this context means you are putting your house up for rent. It could be part of your house or the whole of it. It could be your bedroom or any other units of your house. This can be done with little or no money at all. Understanding this is what you need to begin.
2. Master Leasing:
In today’s world, you don’t really need a house or grand money to begin real estate investment. There is a technique called master leasing where you can rent out your rented rooms or apartments. Say, for instance, you bought an apartment and there are still rooms unused in the apartment, you can negotiate with your landlord to let you sublease the unused rooms with others and make more money from the venture. Once you’ve gathered enough money, you can decide to go for an option to buy your rented apartment at an agreed period.
3. Real Estate Crowdfunding:
Since you don’t have the means, you can join other investors to source for investment funds. This process is known as real estate crowdfunding. There are agencies into this option as well as there are companies. It works like savings except in this case you are saving with other people towards a common goal which is real estate. There are risks but you can stick to them. Many of the companies involved in real estate crowdfunding are small firms and growing real estate enterprises.
4. Real Estate Investment Trusts:
You’ve probably heard of this. But if you haven’t, it works with you buying funds from Real Estate Investment Trusts, using those stocks to generate real properties which are frequently supervised by REITs admins and supervisors. The benefit of having REITs is that you own a piece of property that can be grown into larger pieces over the year depending on how consistent and committed you are to the project.
5. Seller Financing:
This is another method of buying real estate. A seller of real estate puts pieces of property up and allows you the liberty of payment most times in instalments. Here the seller is your bank and if you can meet up with the arrangement the pieces of property become yours. But if you can’t, the seller decides what to do with his pieces of property.
There are many ways you can become a real estate investor even without having enough money to invest. We have provided 5 of these ways.