There’s a common misconception that you need to have hundreds of thousands of dollars just to get started in real estate investing. In fact, there are several ways that people with very little savings can start investing and turn a profit. As you build more capital, you can invest more and boost your returns, but anyone can get started with a small amount of capital.
Partner With Other Investors
You can form an informal partnership with friends, or with other investors you know through networking. This allows you to share the risk and minimize your potential loss, while also providing an opportunity to invest in projects that might have otherwise been outside your budget. It also means sharing the profits, but it’s a good way to get started.
Buy Starter Projects
If you’re ready to get your hands dirty, the fix and flip market still offers plenty of potential for real estate investors. If you can get financing and buy a house below market value, you can make a nice profit on its sale. This might be the stepping stone you need to start taking on more ambitious projects in the future, which will earn you more in profits.
Act as a Wholesaler
Wholesaling is a fairly new investment practice that requires very little work on the investor’s part. It involves getting a property under contract at a good price, and then selling the contracted property to a third party without closing. Hence, this strategy requires little to no capital.
Even if you only have a few hundred dollars, there are dozens of ways you can use your savings to invest in real estate. Once you start growing wealth, you’ll find more opportunities that are available to you. As long as you do your research and invest wisely, real estate investing can be a lucrative and exciting opportunity.