The thing I like about investing in residential Real estate is everyone needs a place to live. Also, there is a lot of it out there, so it’s not hard to find something to work with.
For many, especially new investors, buying a house is not a good or viable option, so we rent. But, the fact that you rent a place to live in does not mean you can’t participate in Real estate investing.
You say you don’t have a bucket full of money to invest? Even if your uncle isn’t rich, there are still many ways to start investing in Real Estate.
Many people will say the most important investment to make as you start building your Real estate portfolio is in education. Any information you need regarding RE is available for free online, but you will also find a lot of free (and some potentially very expensive) dis-information. I can’t over emphasize how important it is to network with established investors so you will be able to identify what is Real and what is not. Find and meet people who can help you through groups like AZREIA and local MeetUp clubs, and meet Realtors and title people at functions where they work.
Investing can also be in the form of “sweat equity” or working with an experienced investor as a potential finance partner as a way to get into the business.
If funding is half the deal, then managing or physically working on the job also has value. You may find investors willing to share profit based on skills you can bring to the project. Or, make a part time hobby of getting paid a finder’s fee ( be a “Bird-dog” ) by locating good investments for other investors. Do this while being mentored by seasoned professionals.
If you have a few dollars to invest, Real estate provides a way to diversify your investment portfolio by spreading risk across different asset classes. Real estate investments can be very secure, even in times of financial uncertainty.
Reaal estate investors can control their investment decisions, including property selection, financing options, and choice of property management.
Often, they use their properties for personal use, such as vacation homes, primary residences, or for family and friends.
Real estate investing can provide a steady stream of passive income through rental income or revenue from Notes. This can be an attractive source of cash flow without actively working.
Residential property values tend to appreciate over time, meaning that your investment could potentially increase in value, providing you with long-term financial gains.
Investors can take advantage of tax deductions such as mortgage interest, property taxes, and depreciation.
Also, personally, I find satisfaction in improving neighborhoods and providing quality housing for buyers and renters.
Thanks for taking a peek at my tiny corner of the web. I hope you find something of value in the information here.
Just one other thing… If you decide to move forward, know that this is not “get rich quick” stuff. While you may see some quick cash, the real rewards of your work will likely take a little time. You might ask yourself how it would feel if three years from now you’re no longer sweating the family budget. If that feels good to you, then this might work out well for you.
If you commit and stay with it, Real estate investing can and will change your life and the lives of people near you for the better.