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9 Ways to Invest in Real Estate With Little or No Money (II)

10 Nov
Ernest Salami November 10, 2017 0

Real Estate

Welcome to the concluding part of this article. Let us continue our discussion on ways you can be part of the multi-billion real estate industry with little or no cash;

  1. Collaborate

Partnering with another investor is not only a way to get money but a great way to complement your investing. They give you money in exchange for you making the investment happen.

You can find someone that has experience in an area in which you lack understanding and create a long-term partnership that will benefit both of your portfolios.

Keep in mind: Partnerships can be effective but keep everything in writing to avoid misunderstandings and financial annoyances. Documentation is very key.

  1. Turnkey Providers

Turnkey Properties are properties that require no renovation and are ready to be rented out. These may or may not have tenants and property management in place. Some turnkey providers offer these homes to investors for as much as 5% down. This requires little money and effort as most or all work is complete. This is also a good option for people who can’t afford to invest in say, for example, the 3-Bedroom flats at Olive Crest Estate and are looking for opportunities outside of their area.

Keep in mind: These providers have high interest rates. Make sure you can maintain occupancy rates to avoid falling behind. Calculate vacancies into the picture and see how that plays into your loan payments.

Real Estate

                                                                      NSE Fair Trade Complex, Alausa, Ikeja

  1. Loan Facility

A credit arrangement through which you can borrow money up to an agreed sum. Most banks grant loan facilities to customers.

A loan facility might be extended to a customer from a bank if the customer is deemed to be credit worthy and seems to have a valid purpose for requesting the facility.

Keep in mind: Be careful not to lose control when drawing and spending such money. Plan your investing costs ahead of time and plan how much you need to borrow and stick to the budget. Although there is a limit to how much you can withdraw, you’re responsible for how it’s spent.

  1. Refinancing Your Mortgage

This is replacing your current mortgage of your personal home (or another property) with a new mortgage.

You can customize the loan – determining the mortgage rate, loan length, and loan amount. If you can have money left-over after paying off the initial mortgage and closing costs, you may have money left-over to purchase an investment property.

Keep in mind: It is difficult to get lenders to agree to refinance. It is easy to end up with two mortgages that you are unable to pay, only take this route if there is enough equity.

Click here for luxury homes and plots in Port-Harcourt and Owerri.

No matter which route taken, make sure you are acting according to the law. Get financial advice or confirmation from an expert to make sure you’re helping yourself more than hurting yourself. Everyone’s personal and financial situation is different, so see which of these ideas work for you.

With these options, think creatively and take extra precautions (like minimizing spending).

Finally, stay patient and think outside the box! Your first investment might be the toughest but forcing yourself to get started will pay off!

You just have to start!

Kindly share your comments below.

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