Investment StrategiesReal Estate: How to Invest with Little Money by Marian Khoury August 24, 2017February 4, 2019 by Marian Khoury August 24, 2017February 4, 2019Investing in real estate drives financial independence, builds upon your knowledge, and increases your pool of network.Many articles nowadays encourage real estate investing and describe its potential in becoming rich. Have you ever wondered how to invest with little money? Or whether you could make a buck off real estate without having any money to start with? Absolutely – it is possible. Believe it or not, you could still invest in real estate with almost no money, but before you do so, make sure to understand this industry very well. Knowledge can be achieved through taking on jobs as a real estate agent, an appraiser, an assistant to a real estate investor, a construction worker, or an intern. Once you have accumulated enough real estate investment knowledge, go on and explore the following ways of how to invest with little money. The following will help you invest and delve deeper in the real estate industry with little or no money.WholesalingOne way to understand and advance in real estate with little money is through wholesaling. A wholesaler contracts with a home seller to market the property for sale to potential buyers, and he/she is ought to sell the house before the contract with the original seller closes. The wholesaler further earns a fee for finding a potential buyer and assigning him/her a home seller. While wholesaling does not entail investing your own money into real estate, it offers you the platform to learn about the business while earning an income.How to Invest with Little Money? Form PartnershipsIf you are wanting the money necessary to fund your real estate investment, partnering with an investor will complement your role and lift off some of the risks associated with the deal. It is important, however, to formulate an investment plan and set the following before signing to a partnership: goals, risk, and roles. This allows for a smoother and more facilitated process for both parties while also offering you various benefits, detailed as follows:An array of financial and other resources;An accuracy of judgment since more analysis by both parties will be greatly employed, thus lowering the risk associated;Expanding on your real estate investing network.Make sure to develop a plan that would align with your needs as a real estate investor and establish a set of code laws that both parties comply with for the succession of this partnership. This is one way of how to invest with little money; read on to unfold more opportunities.Related: Best Ways to Make Money in Real Estate Besides InvestingHard/Private MoneyHard/private money offers you another way how to invest with little money. If you are uncertain of whether or not you qualify for a bank loan, hard/private money offers you a substitute. Instead of going to a bank or using the traditional means, you can reach out to private entities, a corporation, or an investor, and propose that they lend you the money. Hard/private money is quick and easy to obtain, but accompanied by high fees and interest rates. It is encouraged to use this method for a short-term fix-and-flip or buy-and-refinance.Sandwich Lease OptionFirst, a lease is a contract that both the landlord and the tenant agree to, where the tenant pays rent for a set period of time while having the option to purchase the rental property at the end of the period. This method is often called rent-to-own. Keep in mind that the sandwich lease option grants the first tenant the right to sublease to a second tenant. The first tenant is then both a lessor subleasing to the second tenant and a lessee to the landlord. The sandwich lease is a low-cash, low-risk method that poses a good strategy for those who don’t qualify for a traditional mortgage or have bad credit score. This option offers a great platform for how to invest with little money.Related: Can Just Anyone Be Making Money in Real Estate?Real Estate Investment Trust (REIT)REIT, often compared to a mutual fund, is a vehicle that invests in real estate through properties or mortgages. Traded on major stock exchanges, REITs allow anyone to invest in portfolios of large-scale properties through the purchase of stocks. REITs can be advantageous in many ways; they are diverse since they have a low-to-moderate correlation with other sectors of the stock market, enjoy extreme liquidity as listed REIT shares can be easily bought and sold, and operate under the same rules as other public companies. Additionally, listed REITs provide a stable income stream to real estate investors while receiving special tax considerations. REITs pay at least 90% of its taxable income in the form of shareholder dividends each year.Fixer-Upper is Another Profitable Way of How to Invest with Little MoneyInvesting in fixer-upper can make you a lot of profit. However, it is important that you have a good plan and a thorough run-down of all costs and renovations needed. A fixer-upper is a property that requires various repairs: from reconstruction, through redesign, to redecoration. Once repairs are made, the real estate investor can rent out the investment property and earn rental income that will pay for the property in some years time. The number of years that the income property will pay for itself depends on the extent of the repairs made. It will also depend on the financial planning conducted during the property scanning and assessment phase. Make sure to thoroughly understand fixer-upper properties, particularly estimate the costs of repair and the time it takes to achieve them.Airbnb LandlordHaving little or no money to invest in the real estate sector can be difficult but definitely not so difficult, in fact, using Airbnb has proven to be one of the affordable ways to make quick money. Airbnb offers a peer-to-peer short-term rental service; it is an online marketplace connecting renters and landlords. Renters, or guests, are usually tourists or travelers who not only look for accommodation but also for a hospitable and homey experience. As for the landlord, or host, expect to make a good wealth renting out your property for short periods of time. You will, moreover, be meeting people from various backgrounds and countries.Prior to your investment in Airbnb, it is important to understand Airbnb’s policy and hosting standards for listing a property, communicating with guests, maintaining the space, and providing necessary amenities.Related: What Can Hosts Do to Improve the Airbnb Experiences of Their Guests?Given the abovementioned methods that you can use over other traditional means, investing in real estate with little or no money can be found to be plausible. You no longer need to wonder how to invest with little money as this list offers inclusive options to unleashing your investment portfolio. Moreover, being a first-property owner will offer you the opportunity to fully understand and further integrate in this sector. Go on venture! Start Your Investment Property Search! START FREE TRIAL Hard Money LendersNo Money DownPartnershipsPrivate Money LendersREITsWholesaling 0FacebookTwitterGoogle +PinterestLinkedin Marian KhouryMarian is an experienced content writer with a BA in economics who loves writing about everything real estate. Previous Post Real Estate Market Analysis: The Basics Next Post Buy and Rent Properties: Is This the Way to Become Rich in Real Estate Investing? Related Posts How to Evaluate a Real Estate Syndication What’s the Deal with the Colorado Springs Real Estate Market at the Beginning of 2018? Making Money in Real Estate Does Not Have to Be Hard. 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