Should I Invest in Real Estate With No Money Down?

It can be very tempting to think that you started with no money down on the real estate investment and became a millionaire just a short year later. In fact there are many different ads and claims all over the internet promising just this. But these might not be accurate especially when it comes to real estate. Simply put, you need to have money to make money in the realm of real estate. There are some merits associated with no-money tactics, but in order to avoid investing your own money you have to convince other individuals to invest theirs and it can be very challenging to lose someone else's money.

Many people choose to instead work their 9 to 5 job while attempting to fulfill their dream of becoming an entrepreneur. This does mean that in the short run at least, you'll need to spend a great deal of time working. If you can structure it so that you are saving some of the money you intend to use to launch your real estate career, though, this can be a meaningful and exciting opportunity.

The money that you are making from your typical 9 to 5 job will be used to pay for your living expenses. If you can cut these living expenses dramatically, you may also be able to set some aside and living frugally can help you start your real estate investment journey. You don't need millions of dollars set aside in order to be successful at real estate but you will want to have a good nest egg set aside. Some people recommend beginning with $50,000. After you have some disposable income on hand from your saving efforts to experiment with real estate, then you can begin thinking about creating additional income with your investments. Some of the most common things people in this situation consider are fixing and flipping, wholesaling or buying and holding. All of these have different potential outcome scenarios and what one works best for you largely depends on your experience and your comfort level along with how much money you have to invest. Make sure you do your research and start out small so that you gain practical experience and feel more comfortable with your decisions as they grow. Becoming involved as a real estate investor can be extremely exciting especially when you are transitioning out of your day job and hoping to make this a full time career. Doing so by living frugally and working to build your dream can be extremely rewarding as well.