Investing in real estate can be a great way to grow your money and get a steady return. But it can also be a scary proposition for those who aren’t sure how much money they’ll need to put into a property. If you’re looking to get into the real estate market and don’t have a lot of money, there are several ways you can invest in residential real estate without breaking the bank.
Here are some tips by experienced real estate investor Rafi Toledano to help you get started and make smart decisions along the way.
Don’t try to buy real estate with cash
You might have been inspired by a friend who bought a house with cash, but in Rafi Toledano’s opinion, buying real estate with cash is a risky proposition. You run the risk of being unable to secure the loan you need to make the purchase, which could leave you with a property you can’t afford to maintain. Investing in real estate with cash also doesn’t account for inflation. Over the long run, prices tend to rise, so investing in real estate with cash could end up costing you money.
Look for deals
If you want to buy a property but you don’t have the money, you can still get started by looking for deals. Many real estate agents and investors, such as Rafi Toledano, will look to sell properties at a loss. This could mean you pay less than the property is worth. Some real estate investors will even offer reduced “offers” at the cost of their time. By looking for deals and negotiating, you could save yourself quite a bit of money.
Learn about the different kinds of real estate
Before you buy a specific type of property, it’s a good idea to learn as much as you can. This could help you decide if investing in that kind of real estate makes the most sense. Rafi Toledano suggests doing some online research to see what other investors and homebuyers are saying about the property you’re looking at.
Get expert advice before you buy
Real estate is a huge investment. You might have the best intentions of buying a property you can afford, but you need to make sure you’re investing in a property that is right for you.
If you’re buying a property on a whim and don’t know what you’re doing, you could end up spending money on a property you don’t need. The first thing you should do is ask for professional advice, whether that’s from a friend, a family member, a financial advisor, or an online broker.
Investing in real estate is a great way to grow your money, but it may not be right for everyone. If you don’t have a lot of money and you want to get started, try some of the tips outlined above by experienced real estate investor Rafi Toledano. Investing in real estate can be a rewarding experience, but it also requires you to be patient and prepare to make some smart decisions.