Most new real estate investors run into the problem. It usually occurs about 37 seconds after deciding that real estate is where they want to focus their future investment endeavors. The problem is, of course, where to find the capital necessary to get started?
The good thing to focus on is that you probably need a lot less than you might think. With decent credit and proper financing, you can often times get into an income property for less than $20,000. While that number might be larger than what it takes to log onto your Ameritrade account and buy a hundred penny stocks (that will likely always be worth only pennies), you should keep in mind that real estate investing is a serious upgrade in asset quality.
Congratulations for leaving the stock market. This is the good stuff. Money spent wisely on real estate, especially when following Empowered Investor methods, should return to you many times over.
But back to the issue – where can capital come from? There’s no way to give a specific answer for every situation – that’s what our expert investment counselors are for – but here are a few ideas to get the gray matter working. Depending upon your personal economics you may need to get creative.
Consider:
1. Partnering with friends and family
2. Finding a second job
3. Starting a home-based business
4. Refinancing your home to pull out equity
If you think the relationship will withstand it, you might also think about taking out a formal loan from friends or family. The neat part about doing this outside traditional financing channels is you can come to term agreements that suit the both of you without dealing with a bank or mortgage company.
The key here is use your brain to find that equity! The sooner you get started, the better.
Stock.xchng / elvinstar
