How much money does it take to invest in rental properties?
Probably not as much as you think.
In the history of the world, perhaps nothing has killed more real estate ambitions than the belief that one does not have enough money to get started.
In fact, I speak with people all the time who don’t know it’s even possible to invest in real estate without having the full 100% purchase price of a property. They look at a $200,000 property and try to do the math in their head, thinking, “Well, if I saved $200 per month from my job, I could start investing 83 years from now. But that’s never going to happen, so I guess investing in real estate is only for the privileged rich.”
Related: 12 “Hidden” Real Estate Expenses That Blindside Investors
Not so!
Enter: Leverage
(P.S. This is unrelated, but FYI – last Thursday night I did a webinar here on BiggerPockets aboutAnalyzing Rentals that had over 2,000 LIVE attendees. If you missed it, don’t worry: I’ve put the replay up until Monday night, so if you want to check it out, do so this weekend before it’s gone.Click here to check out the replay! Or to sign up for THIS week’s LIVE webinar, visitBiggerPockets.com/webinar)
Using Leverage to Reduce the Amount of Money You Need to Invest in Real Estate
While yes, it is true that some investors pay for properties in all cash, the majority of investors utilize leverage when buying rental properties.
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P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.