i want to buy real estate for rental income but need to start with little money?
436242
I think most of the no money down, subject to, and lease option stuff is crap.  Perhaps after you have gained experience you can get deals no money down.  I lived in a college town also and saw the same thing happening in my town.  Rentals were everywhere.  I got started in real estate as a birddog.  I made $500 finding leads for an investor.  $10/ per lead he didn't have to close for me to be compensated.  There are only so many investment opportunities in one market though, so now after much debate I am becoming a realtor. Then I plan on being a commercial broker and THEN an investor. It is gonna take a while. I really think that you need the money/ experience/ connections/knowledge before getting into such a heavy endeavor with such thick legal implications and even scarier liabilities/consequences. If you don't know what you are doing you can get hauled off to jail for 3rd degree felonies with that no money down garbage.  Besides that most single family homes make next to no cashflow, especially with the way interest rates are going up. HARD WORK HARD WORK HARD WORK!
35984
I would focus on your comfortable monthly payment, and stick with that.  You may be approved for a much higher purchase, but remember, lenders are not your fiduciary; many people get in over their heads, and sure enough a lender was willing to take them there.  A top quality real estate agent will be able to guide you.\n\nAfter you determine your comfortable monthly payment, you might consider purchasing rental or investment property with your leftover financial capability.  A great book to read is The Millionaire Real Estate Investor, by Gary Keller and Dave Jenks.  This is smart as you focus on retirement and college expenses.  Good Luck!
883694
My answer will have three parts:\n\n1. Make your rental deal more attractive to lessen your fundraising needs. \n\nMichigan real estate is experiencing a huge downturn currently. It has become increasingly difficult for owners of strip malls and other commercial property to find tenants for their buildings. You may be able to negotiate a deal that requires no money down at all. Especially if there are vacancies in the location you are attempting to move to. Explain to the owner that you have a strong background in the type of business you engage in. Don't begin to explain why you do not have enough funds for downpayment or anything of that sort. Point out to the owner that another commercial property has becom available to you with no money out of pocket required and they may lessen their requirements. Building owners need to retain certain occupancy rates to remain profitable and keep their property out of foreclosure. Use this dire need for tenants to you advantage! \n\n2. Fundraising \n\nI find that most business owners have fund fundraising in the initial phases of their businesses from families or friends. Approach the people that are already in your life, they know your business experience in your field and have seen you succeed at your current location. Structure a program to get a little contribution from a few people rather then looking for one single person to give you the whole amount that you are looking for. Essentially sell "stock" in you business. \n\n-Show sales and profit numbers for the last two years.\n\n-Have a detailed business plan. \n\n-Explain how this particular location/store would be advantageous to your business. \n\n-Show how you plan to advertise and attract customers. \n\n-Give a realistic expectation of what your expenses would be (staff, electric, heat, advertising, promotions, etc.)\n\nTreat family and friends as you would any other investor and have a "formalized" meeting with them. You want everything to appear professional and well thought out. \n\nThe last piece of advice I would give you is to find a possible sponsor. When kids trade cards and play it keeps them off the streets and out of trouble. Offer to host tournaments so many times a week and show how this can benefit the community and make parents feel good about their child's activity. That approach could possibly help you get sponsorship from certain churches, other local businesses, family support groups, etc. \n\n3. Credit options\n\nEven if you have bad credit you could possibly use another piece of property or vehicle that you own as collateral for a business loan. With this option you also want a professional well though out business plan.
508560
The only advise I can give you is to buy something now. Even if it is a small condo. That way, you are building equity and not throwing money away on rent.\n\nThen, 7 years from now, you will have much more to put down and can afford a better house.\n\nFor more details, consult a realtor. Just remember, any service (mortgage, inspector, title company, etc) that a realtor recommends will be paying the realtor a 'finders fee' which ultimately comes out of your pocket. Let the realtor tell you what you need and then shop around for the right people.
522881
I know that in my town, I belong to a Real Estate investors group. SOme of us do fixer uppers and some provide loan money. Look in your local newspaper for meetings or groups.\nIt is always a good idea to build a network of people that invest in Real Estate.\n\nMy lenders will only loan if there is a 50% equity position and the loans are for about 12%, but if you are flipping them, the rate is somewhat irrelevant within reason.
168979
There is no magic investment out there which is going to provide you with lots of income with little work. Most reputable financial advisors will tell you there are only 3 basic passive investments that most rational people use:\n\n1. Bank accounts and Money Market accounts.\n(These usually barely keep up with inflation.)\n2. Bonds and Bond Funds\n(These currently don't yield much better.)\n3. Diversified Stocks\n(These Average 10% a year but have large swings in price)\n\nMost other investments you hear about are usually of questionable worth.  You can make money in Real Estate as a landlord if you are willing to put a lot of work into it.  Most good financial advisors will not recommend passive real estate investments.  (An exception is REIT's, but they are basically a type of stock)
1151881
I would not sell unless there were great reasons for me to do so. I would still purchase investment properties. This is an excellent way of earning a living as well as gaining wealth.\n\nif you can refi at 50%-60% LTV or less and still have a positive for additional purchases that is a good strategy \n\nI would diversify my investment by investing in 2nd trust deeds and equity loans. The interest rates are about 10%-12%. \n\nYou can do the collection or hire someone to do the collection. There are computer programs available for you to purchase if you want to do the collection.\n\nThat way if the real estate market take  a swan dive for some reason you still have trust deeds that are earning money for you.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
742692
Here's the thing about rental properties:\n1.  Make sure you have at least 10% down for the purchase, because most lenders will not go higher than 90% LTV on an investment property.\n\n2.  Make sure you either know how to perform maintenance on the property, or know someone who is both skilled and honest.  You'll need to know someone who can do plumbing, roofing, gutters, windows, drywall, flooring, landscaping, the list goes on.\n\n3.  Start looking for tenants when you sign the purchase agreement.  You don't want that property sitting empty.\n\nRental properties can sometimes be a pain.  But, they can be very lucrative.  I have a former client that owns about 10 of them, and makes a buttload of money of them.  You may also want to look into a property management group.
323723
Hmmm.  The REAL question should be whether to buy (at all) or rent!  (Three years might be too short to cover the costs of the buying and selling transactions.)  I'd guess if you're willing to buy a "fixer-upper" and put some time and money into it, then three years would be okay.  Lots of folks can make good money "flipping" houses like that.  Otherwise, you might be better off just renting.  If it was longer, I'd say go ahead, buy.  If it was any shorter, I'd say definitely rent.  You're really on the cusp with three years....   Good luck.
409633
Go around to all the fisbo in your town and ask them if you could bring them a buyer that would net them the same, could you list their house. Call all the landlords that are advertising apartments for rent in the newspaper and ask them if they would be willing to cash in on all the hard work they have done on their property. Personal observation will be your number one source of leads.
578334
Maybe check out a real estate investment club in your area.
1016241
Rent an apartment.\nFix it up.\nSub lease it for more money.
58210
I own a fourplex and a house.  I love receiving rent check but you also have to keep in mind you will be the landlord if you don't use property management.  It's also depends on if you really need the money from selling your home.  You could sell it and invest or you could keep it and collect rent for 15 years and the sell it.  By doing that you have made money on the rent "maybe" and the house may be worth more by time you sell it.  Or my favorite, you could keep it and rent it out forever and use it as a retirement check so to speak and when it falls down just use the insurance money to rebuild. ;)
329174
Our bank even offers 100% loans on Investment Properties.\n\nThey are a little more difficult to qualify for, but they are there.\n\nAlso, the interest rates start going up after the 80% mark, so if you are looking for a "cash flow" property, the 100% loans may not work well for you.  It depends on what area you are in and how much you are buying the house for.\n\nIf you are looking to flip the property in a short time, then who cares about the rate.  Just get in, get out and take your profit.\n\nThanks,\nGreg
103087
sounds like something can drive your finances to higher level..... it's like a medium to get you to somewhere.... real estate can be a financial driver when you can receive rents.  that is a form of residual income.
561793
Buy real estate. Strongest investment if you don't have much time. I can help.
271497
Start by checking out the Realtor.com website for info. It is costly to get started and the pay is a lot less then you might think.