Epic Real Estate Investing - How to Get Started in Real Estate with Little Money (this works) | 1210

Episode Date: June 9, 2022

In today’s episode, Matt will teach you how to invest in real estate with little money. You don’t have to be sitting on a pile of cash to start. Whether you've got $10 or $10,000 to invest today, the best thing you can do is to simply start. You can get that first, or next, deal done in 10 days or even less. Start getting your deals now!   Are you ready?   Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. How to invest in real estate with little money. Yep, you can do it. You don't have to be sitting on a pile of cash. No, and you can get that first or next deal done in 10 days even, or less. I'm going to show you how. You're ready? Let's go.

Welcome to the all-new, epic real estate investing show. The longest running real estate investing podcast on the interwebs, your source for housing market updates, creative investing strategies, and everything else you need to run. retire early. Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, EpicR-EI.TV. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to r-e-I-Aase.com. Here's Matt.

All right, so by the time we're done, you're going to have three solid places to start investing. investing in real estate with little money and how to get that next deal done by the end of the month, even if it's your first deal. And at the end, I'll give you the fourth way, even my funds to do it. So when most people think about investing in real estate, they think about purchasing a rental property or an apartment building. And while these are great ways to start investing in real estate, they might not be the most feasible options for everybody. Luckily, there are options available to get started investing in real estate with little money. No matter what your budget is or how much time you have available to invest into managing

your real estate investments, there are opportunities available. Now, the best way for you, it's going to depend on your level of knowledge, the time and energy that you can commit, and the amount of money you do have available, even if you don't have much. All right. So, number one, the first way. And it's how I got started. Buying property with creative financing.

There's no doubt that you've seen books and classes or infomercials on how to buy real estate with little or no money. I mean, no money down is a popular headline used by people trying to sell books and classes or by people trying to get them to watch their videos. So I've made several videos over the years about no money down, but the reality is it can be pretty difficult to pull off without proper guidance. However, this doesn't mean it's impossible, nor does it mean that there aren't practical ways to buy real estate with little money. For example, take seller financing. You know, some sellers are willing to take payments over a period of time instead of taking all cash at closing. You know, depending on the seller, they may even be willing to take a lower down payment or even

no down payment in exchange for, say, a higher purchase price or a shorter term on the payments. Another example of putting deals together with little money, and that's by using hard money. You see, a hard money lender is a private lender that provides short-term loans to real estate investors. And typically they're looking more at the asset that you want to borrow the money for than they are looking at you. Perfect credit is not needed here most of the time. And when you can find a value-ad investment opportunity priced below market value, you can potentially get into the deal with very little money out of pocket when it meets the lender's criteria.

The catch is that these are typically short-term loans, six to 24 months. So it's ideal if your intent is to flip your property or to buy some time to find a longer-term loan solution. Another example of investing with little money, consider taking on a partner. You know, a lot of people get into their first deal this way. See, you see, while you may not have the capital, but you are willing to put in, say, the time and energy to manage an investment property, there are other people with the funds available that don't have the time available to be an active investor. And I'll share with you later how I can be that money partner for you. But you can find these people without much difficulty despite networking at your local real estate investment groups.

You know, if you talk to enough people, you'll eventually find the equity partner that you need to close a deal. But wait, there's more. Consider house hacking. Yes, there's a hack for pretty much everything, right? and real estate investing is no exception. You see, you can't use an FHA loan to buy an investment property. However, you can purchase a two or three unit residential property as long as you make it your primary residence by living in one of those units.

So this means that you can buy the property with as little as three and a half percent down. You can then find a tenant for each of the other units and collect rental income. And then after collecting rent for a year, you can refinance the property and repeat the process. Another way to go about this is by buying a single family house with an extra bedroom or use an extra bedroom in your current home to rent out on a short or long-term basis. As long as the home is your primary residence, you can use an FHA loan to get into the property with a low-down payment. You see, creative financing options are pretty much endless. I could keep going, but at least you have some at your disposal right now. And I have two more

ways for you to invest in real estate with little money that don't require nearly as much work. But if you're the type that doesn't mind getting their hands a little dirty, as long as there's a nice reward on the other side, I'm getting together this month with a small group of investors where we're going to roll up our sleeves and each of us are going to get a deal done in 10 days or less. And that's a guarantee. So if you'd like to join us, you can get the details at the legends challenge.com. Now, a much less labor-intensive method to invest with little money is number two, a real estate investment trust, or more commonly referred to as a REIT. It's a company with multiple investors that pull their money together to invest in real estate.

So REITs, they get special tax treatment. So they have to follow specific rules like paying out at least 90% of their taxable income to shareholders in the form of dividends. This makes investing in REITs a great way to earn passive income. And so you can choose a publicly traded REIT or a private REIT. However, private REITs typically require a higher minimum investment and are difficult to liquidate. Publicly traded REITs, on the other hand, they trade on the stock market like any other publicly traded company. So you can buy a single share and sell it pretty much whenever you want. Now, the major

benefit to investing in a private reet is that the future value of your shares, it's more predictable. You see, the value of your equity in the reed, it's closely tied to the equity in the properties the reed owns. The share price of a publicly traded reet, that can be much more volatile since the price often moves with the market more so than the value of the reed's assets. However, investing in a publicly traded reet, it's extremely easy. You see, you can open a brokerage account in a matter of and own your share of a portfolio of institutional-grade real estate by the end of the day, all the while being managed by some of the most qualified people in the industry. Number three, crowdfunding.

This is quickly grown in popularity since the Jobs Act was signed into law in 2012. And since the Act was first introduced, the federal government has made even more changes in regulations, making it even easier for real estate investors and developers to raise capital from everyday investors. The introduction of real estate crowdfunding has made it possible for an individual investor, to earn passive income by participating in a wide range of available real estate investments. I mean, there are even crowdfunding investments for investors at just about any level with virtually any budget.

The important thing to remember, though, with these is that the deal sponsors aren't held to the same disclosure requirements as publicly traded companies. This means you have to do your due diligence before making an investment. Now, there's one other way that I'm going to share with you before I go, and I'll even give you access to my funds to do these deals. But how do you decide which one of these is the best one for? for you. Well, start by considering how much money you currently have available to invest and then decide how hands-on you want to be. And then most importantly, what's the end game? I mean,

what's the goal here? Are you looking to supplement your day jobs income or maybe replace it altogether? Or just build or diversify an investment portfolio for retirement? You know, wherever you decide to start, know what's not forever, you can grow your investments over time with, say, a crowdfunding platform and then later use that money to purchase your own rental property. Or you might find that crowdfunding is the best option for you for the long term and just continue growing your investments that way. So whether you've got $10, $500,000 or $10,000 to invest today, the best thing you can do is to simply start. And if you're fed up with the rat race and you're ready to get started, I've got two places where you can take immediate action. First,

join me for the Legends Challenge where I'll work right alongside you and mentor you for the entire challenge to get a deal done in 10 days. That's the plan. So go to the Legends Challenge. challenge.com for the details, and then we'll get it done together. Second place, I'll give you access to my funds to do these little one-day quick flips that my students are doing, and you can take a look at how you can pull this off in your market right now at matsfree training.com. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you, and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream.

Yeah, yeah, we got the cash flow. You didn't know, homeboy, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.