When you purchase a newly constructed Rental home, you’re presented with two options: purchase it all at once or you could get the money through an unsecured mortgage or another kind of loan. If you choose the second option, you’ll find that the majority of lenders require an initial down payment of at least 20% in order to guarantee the loan. For a home valued at $100k, you’ll need at least $20k in cash. If you list a property at less than that, you’re responsible for at least $10k. For many it’s a major deal-breaker. The average American only has 1,000 dollars in their savings account and that’s not even the equivalent of 20 or 10 thousand dollars.

What’s a potential investor to do when they have a few dollars to invest in the purchase of a home? Three options are available to you to consider:

  1. Create a partnership — Have you thought of the possibility of pooling your resources with an investor? This is a great option for those who don’t have lots of cash and aren’t afraid to share the responsibility of ownership. Naturally, you’ll also need to share profits. Be sure to be aware of that. In addition, you should be sure that you and your potential partner are in agreement about your goals, the division of responsibilities, strategies and much more. Partnerships can be difficult particularly when disagreements occur so, you must have a strategy to overcome these issues.
  2. Crowdfunding — Crowdfunding provides a different option for those who are lacking capital. The process works like that opportunities are advertised (often via social media) and interested parties can make an investment so that they can meet the required requirements (usually approximately $5k). With tiny investments like those made by a large number of people, large amounts of money could be raised quickly, allowing investors to enter the market and earning profit in the near future.
  3. Private loans are a great alternative to credit unions and banks. You have the opportunity to investigate the possibilities of lending privately. Sometimes known as hard money loans, they are financed by private companies or individuals which aren’t subject to the regulations and rules of banks and credit unions. This allows them to create their own rules. It’s their money at the end of the day, and so the parties are agreed upon and there’s nothing illegal going on the loan is considered to be safe. The details of a down payment and interest rate duration, and many other aspects can be settled. To locate an individual lender you can do a search on the internet and quickly find an array of choices. However, I would suggest speaking with a trusted friend (another investor or real estate agent etc.).) To find out whether they have any recommendations prior to making a decision.

See? You have choices for Investing in Real Estate, even when you don’t have the funds for the typical 20 percent down amount. Use what you’ve got and come up with a solution that you like. You can save to get in a position to save more money…and then with me to discuss turning your investment into a turnkey plan!

Vairt.com Provides an opportunity to invest in real estate by diversifying with Hotels and Short Term Rental Assets with the potential to generate income and grow in value.

Vairt is a Crowdfunding Platform for Investing, tokenizing and liquidating real estate assets through Block chain. Once you are ready to make an investment, you can make an investment in less than 2 minutes. Sit back and relax as your property gets funded. Vairt analyzes Property Investment Opportunities using a 100-point proprietary screening tool and independent third-party market data to assess the investment attractiveness of each property. We give you the opportunity to Invest in Real Estate for as little as $5000. All properties on our platform are listed for 30 days to give investors ample time to raise funds.

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