If you’re aiming to invest in real estate, then it’s important to know that getting into it is never going to be cheap. They’re valuable assets that are getting more value with every year, for the most part. As such, you should be ready to drop serious capital on your investment. However, that doesn’t mean that it has to be prohibitively expensive, either. Here are some ways to lower the costs of getting into real estate investment so you can start growing your portfolio earlier.
The first tip is to not get big ideas about suddenly buying up a lot of real estate. If you’re new to the game, you should start with a single property and use that as your point of growth. Learning how to maximize profitability from that initial property can be essential for the rest of your portfolio, by buying below market value when you can and making cosmetic renovations. The profit that you gain from that property can then also serve as the capital that goes into your second property, and then your third, and so on. For any properties that aren’t
Waiting for the opportunity to buy below market value and increase your profits by renovating isn’t the only way to build value from a relatively low cost of entry. Aside from buying, building the property is very much an option if you can identify land that is open to build on in a growing market. Networking with land developers may be able to help you discover land that is going at a lower price, but the construction process is where you’re likely to see costs start to balloon. This is why you should look at the comparison of a modular home vs stick built. Finding a provider of modular homes that work for your market can see you reduce both the costs of getting buildings up as well as reductions in the time it takes to get them to market.
Don’t go it alone
If you find it difficult to get onto the market or to build your own, then there are other ways to get started as well. Putting your capital together with others through joint venture property investing, with the help of a property management company to head it on the behalf of the group, could see you owning a share in a property. The returns will be smaller due to splitting ownership, as well as seeing some of those profits go to whoever is managing the joint investment. You may be able to cut out the latter part by partnering with someone individually, but managing investments with one other party who is just as much of a stakeholder can be difficult.
There is more to consider when it comes to a good investment than just the cost of entry alone. However, if you’re able to identify opportunities that work by all other metrics, the tips above can help you make it much more accessible.
Get the latest news, updates & exclusive offers sent to your inbox.