Investing in real estate is generally a smart investment if you do your due diligence and select the property carefully for its likelihood to appreciate. Also, be sure you are ready to invest in real estate because investing often requires a significant amount of money.
Investment with bad credit or no money
Is it possible to obtain real estate with bad credit or with no money?
There are literally thousands of courses out there on the market willing to teach you the secrets of little money investing in real estate, how to avoid paying real estate commissions, and how even to obtain cash back on the sale of your real estate.
But of course, many of these courses cost up to $1,000 or more.
To save yourself some time and grief, here's the general solution to your no money, no credit problem.
Either find a private lender that will wish to co-invest for you, or find a real estate property that is wholly paid off by the bank, and the property owner is willing to invest in your buying directly from them at decent terms.
If you have handyman skills for example, even if you have little or no money down or bad credit, a proper owner who doesn't immediately need a cash payback, may be willing to take a chance on you if he thinks you can honestly improve the property over time
Another option is a lease with an option to buy agreement, in which the owner ratains ownership of the property but gives you the option to buy later if your fiances get in bette
Best Ways to Invest in Real Estate
If you are just starting out in property investing, most real estate investors recommend that you start small. While investors occasionally find a great deal on a single-family home, the best solution is often property investing in a duplex or a triplex.
Why a duplex or a triplex? Because you can live in one unit and rent the other units out, helping you quickly build capital.
The problem with other real estate investments such as land, commercial property, or even single-family homes is that making money requires not only being able to purchase the property but being able to have the financial resources to pay the taxed and to be able to afford any maintenance and upkeep on the property.
Remember, if you are renting out a duplex and a water heater or HVAC system breaks down, it's on your dime to fix it or replace it.
So while real estate investors have an opportunity to make a significant, somewhat passive income, it requires patience and capital to make a go of it.
Investing in Commercial Real Estate
Commercial real estate is often the best way of making money in real estate, providing its the right type of commercial real estate.
Right now, the market is flooded with malls that are closing or near closing, and in most cities, there are plenty of commercial office spaces for rent.
You need to be a real expert in these niches in the commercial sector. However, warehouses continue to be one of the most profitable aspects of commercial real estate and generally require less maintenance overall as well.
Naturally, the bigger the warehouse you build, the more cash you'll need, but warehouses, once you find a client, can be a long-term solution to your investment needs.