#GoodReads – How to invest with little money

“How to invest in real estate with little or no money” via Canadian Real Estate Magazine.

“Real estate is commonly seen as one of the best ways to invest your money and grow your wealth and it has become a popular choice for everyone – from big-time investors to homeowners looking to have a bit of extra money for retirement, more and more people are looking to enter the world of real estate investing every year.

However, real estate as an asset also gets more and more expensive every year. In fact, it’s no secret that it’s becoming harder for the average person to fund their real estate investments. With housing prices seeing double-digit increases for the last couple of years, many people believe that they are too late to become a real estate investor and simply do not have the finances to cover the high costs of starting out.

However, this may not be the case.

There are multiple ways that you can invest in and take advantage of real estate with little or no money, though you can’t take advantage of these opportunities if you don’t know about them. The most common and popular form of real estate investing is to simply buy a property and benefit from the growth of equity either by selling for a profit or by tapping into your equity through financial options like a home equity line of credit (HELOC).

Another popular real estate strategy is in rental properties, which allows you to grow equity through property ownership while also generating cash flow and offsetting your carrying costs through rental income.

Beyond these methods, however, there are even more options. If you think that you are unable to begin real estate investing for a lack of funds, it may be time to think again. In this article, we will go over some of the less lesser-known options to invest in real estate with little or no money to begin growing your wealth and achieve financial prosperity.

How much do I need?

It may sound strange to start investing with little money, but some strategies make it more possible than it seems.

Now, naturally, you need some amount of funds to start with, but this doesn’t necessarily mean you need hard cash on hand. On the no-money end of the spectrum, you will need to tap into some value, but you may be able to leverage your existing assets or get loans with no money down…

The most common example of this would be utilizing your home equity. If you already own a home or other property that has grown in equity, your lender will often allow you a home equity line of credit or a refinance that can help you pull funds for investments from your existing real estate assets.

There are also investment options that do not require you to own the title to any property yourself, such as real estate investment trusts (REITs). These options allow you to pay into larger funds and trusts that own real estate themselves and distribute the benefits to their shareholders and investors.

There are also options like rent-to-own schemes that allow you to build an investment fund while continuing to pay rent that you would otherwise be paying anyway…”

To read the full article, click here.