5 Awesome Ways to Invest in Real Estate with Little Money

Real estate investment is considered by far the best and the safest mode of investment. Real estate investment or Property investment is a financial two-edged sword that doesn’t have any depreciation whatsoever rather it is one of the few investments that gets monetary appreciated over time. Because of these two very important characteristics, it is the best form of investment with the least risks involved.

However, real estate investments are not everybody’s cup of tea because of one major reason that is the huge chunk of money required to even think about property investments. Secondly, you need to have the proper knowledge and working in the real estate industry as well as a good network of associates from the said field. These few roadblocks were keeping many small investors from the real estate industry but not anymore. With the emergence of a risk-sharing business module, small investors are also being welcomed to this fame game.

Here is all you need to know about how to invest in property with little money:

REITs – Real Estate Investment Trust or REIT, often compared to Mutual funds, it allows you to invest in property without buying it physically. There are many companies that own real estates such as residential properties, retail spaces, commercial buildings, and hotels and allow you to put in your money in return for high dividends. REITs are both available as stock and publicly traded.

RENTAL PROPERTIES – One of the trickiest ways of investing in real estate is to rent a property that you have rented from somebody else. And, more often than not, it is a highly payable investment. Say, you rent a 1 BHK for INR 10,000 for your living. So, instead of settling for that 1 BHK, you rented a 4 BHK for INR 35,000. Keeping one for yourself, you rent out the other three making a profit or at least covering up your rental cost.

REAL ESTATE MUTUAL FUNDS – Just like REIT, you can also invest in real estate mutual funds. Although mutual funds are very speculative, the companies that offer real estate mutual funds are quite stable and have assets to show off in return for your investments. However, the returns on real estate mutual funds are comparatively low as compared to other mutual funds but both of them are cost-effective providing you with an opportunity of investing in real estate with less money.

HARD MONEY LOANS – An indirect form of investing in real estate but a highly guaranteed return comes with direct lending to real estate investors. Property investors are always in need of quick money without the never-ending procedures of banks and other financial institutions that require a lot of paperwork. You can always filter down your potential investor and lend him that quick money for a high return.

ONLINE INVESTMENTS – Companies like FUNDRAISE and REALTY MOGUL is offering small investments from across the globe to pool that in as one huge investment. You can always invest small amounts to check the return cycle of the companies. As for the returns, FUNDRAISE returned an average of 11.4 % on invested dollars in the year 2017. Moreover, you don’t need to be an accredited investor to open an account.