{"id":933,"date":"2017-09-01T05:18:10","date_gmt":"2017-09-01T09:18:10","guid":{"rendered":"https:\/\/rentpost.com\/resources\/?post_type=manual_kb&p=933"},"modified":"2024-03-02T15:43:39","modified_gmt":"2024-03-02T20:43:39","slug":"5-real-estate-investment-new-investors","status":"publish","type":"manual_kb","link":"https:\/\/rentpost.com\/resources\/article\/5-real-estate-investment-new-investors\/","title":{"rendered":"5 Investments in Real Estate for New Investors"},"content":{"rendered":"

Traditionally, real estate investment involves a decent chunk of cash. Although you can sometimes purchase a property with zero money down, it\u2019s not easy. It leads to a higher monthly mortgage payment, which can make it more difficult to achieve positive cash flow.<\/p>\n

Fortunately, there are a few ways to invest in real estate without ponying up a lot of money upfront. Even though these don\u2019t offer as much control as you may like, it\u2019s an excellent way to get into the market to build up capital.<\/p>\n

The Best Real Estate Investment Options<\/h2>\n

Investment #1: Crowdfunding Sites like Groundfloor<\/h4>\n

Groundfloor <\/a>is pretty cool. Here\u2019s how the process works:<\/p>\n

    \n
  1. Someone decides to either purchase a residential property or fix one up to flip.<\/li>\n
  2. They go to Groundfloor with a business plan, seeking funding.<\/li>\n
  3. Investors who are members of Groundfloor invest money to fund the project. They can donate anything as low as $100.<\/li>\n
  4. Once all of the funds are raised, the business owner uses the money to buy or fix up the property.<\/li>\n
  5. The entrepreneur repays the money to Groundfloor, who takes a cut and gives the rest back to the original investors.<\/li>\n<\/ol>\n

    It\u2019s a win-win-win. Investors are able to invest money in a property<\/a> without too much risk. The business owner gets the financing required to buy or flip the property. And Groundfloor makes money by handling the process.<\/p>\n

    You can partake on either side of the coin. You can either use the site to raise money for your real estate investment or add funds to help pay for someone else\u2019s new venture.<\/p>\n

    Robert Allen once said, \u201cYou can actually borrow your way to wealth.\u201d Sites like Groundfloor make that possible for all levels of investors, even if they have trouble getting money at the bank. But being on the other side- the money-lender charging interest- isn\u2019t bad either.<\/p>\n

    \"real<\/p>\n

    Investment #2: Real Estate Investment Trust<\/h4>\n

    A REIT is a chance to invest in a company that owns and manages a portfolio of real estate investments. According to reit.com<\/a>, they are usually sold on the stock exchange.<\/p>\n

    There are specific regulations a REIT must follow. These are to protect the investors, as they are usually considering REITs to diversify their portfolios.<\/p>\n

    Investors also love REITs for dividends. People who are on a fixed income and not looking for fast growth will often use REITs so that the dividends can provide regular cash flow. Regular cash flow without all of the risk associated with owning and managing a property yourself? Not a bad deal at all.<\/p>\n

    The biggest downside is the lack of control. But if you are new in the world of real estate and have never managed property before, this is an excellent way to get some money into the market without excessive risk.<\/p>\n

    Investment #3: Get a Partner(s)<\/h4>\n

    \u201cFinding good partners is the key to success in anything: in business, in marriage and, especially, in investing.\u201d<\/em> -Robert Kiyosaki<\/p>\n

    My uncle Jason didn\u2019t have enough money when he was younger to buy a beach condo as a vacation home. He was just getting started in his career and had a young family.<\/p>\n

    But he found he could easily afford his portion when he got a few other families involved (his in-laws). This was great because he didn\u2019t have to worry about renting it out all summer long to help pay for expenses. Instead, his biggest concern was scheduling it ahead of time and making sure he wasn\u2019t trying to use it the same week as his in-laws.<\/p>\n

    \"\"<\/p>\n

    It\u2019s obviously a little different when you\u2019re talking about investing in real estate as a business, but the idea is similar. Being responsible for all of the costs by yourself is tough. But if you can share the burden with someone else, it will be easier to come up with the money you need to buy a rental property.<\/p>\n

    There are a few ways to find real estate investing partners:<\/p>\n