Real estate may have produced more wealth than any other industry, but people still remain skeptical about entering into the fray. Most think that they need to start with some sort of capital, but that's not always the case. The one magic power you do need is to be able to find the money, and we're often not talking much to open up escrow. If you know what you're doing, you can make money in real estate even if you're just starting out.
Don't think so? Just open an escrow for $500 and find a distressed home and a motivated buyer and buy them together. There are plenty of other examples of this as well. The point? You don't need a lot of starting capital to make money in the real estate industry. But you do need the knowledge and the know-how.
Most people think that it's easier to make money online than it is to make serious coin in real estate. But both are difficult if you don't know what you're doing. When you get the lay of the land and understand the path forward, you can make strides.
Here's what you don't need to generate an income in the property market.
You don't need credit: Even if you have poor credit, there are ways forward if you're committed enough. Several of the methods discussed in this piece don't rely on credit whatsoever. In fact, many successful real estate investors started with no credit or even poor credit.
You don't need significant capital: You don't need capital to make money in real estate beyond a few hundred dollars to open escrow. Of course, this means going for the lower-priced homes or distressed properties and flipping contracts. It also means finding hard-money lenders or other investors that can help you push deals through. This could even apply for home renovations as long as you're good at finding the money.
You don't need major assets: There's another misconception that you need to put up major assets in order to secure a contract or purchase a piece of property. You don't need to do this, but you do need to understand how creative financing works. Most people simply stop dead in their tracks because they have this belief about what they need in order to get started.
When it comes to real estate income, there are two ways to generate cash. You can generate passive income by buying and holding, while you can generate an active income by flipping contracts, doing renovations or adding value in another area -- such as putting together property development deals. It might seem overwhelming at first, but it won't be as intimidating once you gain experience.
When most people think about making money in the real estate sector, they ask the following types of questions:
