How Much Money Do You Need to Invest in Real Estate?

By John Wesley Walker II

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When it comes to real estate investment, one of the most common questions is, “How much money do you need to get started?” The answer isn’t straightforward because it depends on various factors. Typically, you’ll need around 20% of the property’s purchase price, but there are some strategies that can reduce the amount of upfront capital required. Here are the options you can consider:

1. Investing with partners. One way to get started with less money is by partnering with other investors. This approach allows you to work with someone who may have more experience or money to invest. In these partnerships, your role might include providing sweat equity, meaning you offer time and effort instead of money. This way, you can still take part in a real estate investment without needing to put up a large amount of money yourself.

2. Investing with other people’s money. Another option is investing with other people’s money. If you know someone who has savings or investments sitting idle, especially in low-return assets like savings accounts or the stock market, they may be open to lending you funds for a real estate investment. This can be a win-win situation since they will receive a better return on their money, and you get the opportunity to invest in real estate with less of your capital.

Important note: Talk to a local banker before investing. Before diving into real estate investing, it’s crucial to talk to a local banker. Understanding the lender’s requirements, such as the amount they’ll require for a down payment and their financing terms, will help you prepare. A conversation with a local banker ensures you know exactly what you’re up against and how to move forward with a solid financial plan.

By exploring these options and consulting with the right professionals, you can start your real estate investment journey with confidence. If you’re ready to learn more, there are free wealth-building and real estate investing classes available for you. If you want to join or you need guidance in investing, don’t hesitate to reach out. You can call me at (318) 794-6769 or send an email to johnwalker47@kw.com. I look forward to hearing from you.