Forget about your cryptocurrencies and stocks, real estate is still the best investment opportunity out there. The main issue with it is that large portions of the populations feel as though they’re sectioned off from it.
This is because investing in real estate demands that you have a lot of money. People are pumping hundreds of thousands of dollars into different properties – it’s not something you can get involved in if you aren’t a high earner.
At least, that’s what most people think. However, as you will see in this article, you can invest in real estate with less than $100,000.
Put A Deposit On A Mortgage
If you have less than $100,000 ready to invest, then you probably can’t buy a house outright. But, what you can do is use your money to put a deposit down on a mortgage.
This will give you access to money that you can use to buy a house. From here, you have many options at your disposal. You can either rent the property out and collect monthly income, or you can try flipping the property to earn a profit on what you paid.
Naturally, you still have to pay off your mortgage, so remember that when you flip your property to ensure you make enough to cover that. With monthly rent, you can use tenant payments to pay off your mortgage bit by bit until it’s gone. Either way, you’re the proud owner of a property, and you invested less than $100,000.
Invest In A REIT
So many people are unaware of REITs. For those that don’t know, this stands for real estate investment trust. It’s this idea that you invest your money in the trust, and gain access to income-producing real estate.
You’ve basically bought shares in the real estate that the REIT owns, get it? As this Rich Uncles review shows, you can start investing in REITs with as little as $500. Obviously, the more you invest, the more shares you own, meaning the more money you get back.
With a REIT, you could have money in various different properties all generating a monthly income. It’s one of the most affordable ways to make money from the real estate market.
Buy Some Land
When you think of real estate, you think of houses and other buildings. But, land comes under the same category too. What’s more, the land is considerably cheaper than buying properties.
Especially if you’re buying farmland, which is cheap and presents many opportunities for you. Now, you can easily get your hands on over 10 acres for under $100,000 – I think the most expensive farmland is around $6,000 per acre, and the cheapest is about $1,000 per acre.
With this much land, you can start a farm and make money from it. Or, you can sell the land on to other people when it improves in value. Or, my favorite idea, you can contact wind energy providers and tell them they can install a wind turbine on your land. They’ll pay you for this, and you’ll keep getting regular income from it. A smart way to invest in real estate if you want to stay away from properties.
There you go; three ways you can invest in real estate with less than $100,000!