Where to start investing with a small budget?

Question

I know very little about real estate except location matters and finding a good deal is important.

I would love to invest in something that I don't have to invest too much time on.  There is a company called Invest With Roots based in Atlanta where all of your funds go to residential properties.  It's an REIT.

Wondering if there are other options out there where I can invest and somebody else will take care of the work for me.

Thomas Watson · Answer

"If your looking to invest in real estate, but be as hands off as possible REITs will probably give you your highest return. Alternatively you could go to local meetups, find the absolute best investors with long track records of success, and offer to fund their deals as a silent partner for some part of the profit and equity."

Are there investors who post online saying "looking for a partner to invest in XX property"?

Also, what is the first thing a person does after they have done their research on a property and want to invest in it but do not have capital?  Are they able to go to a bank and ask for a loan to pay for the property?

Bryce Jamison · Answer

For everyone thinking about getting into real estate investing, I recommend spending at least 6 months educating yourself through websites likes this and its family of books and podcast, other real estate podcast, books at the library, and local meetups. After 6 months you'll know what strategy you want to deploy, and have the confidence and knowledge to do it.

This can also provide time to pay off any consumer debt, save an emergency fund, and start saving for a property as needed. This time can also be spent learning everything possible about your target market using websites like Zillow.

If your looking to invest in real estate, but be as hands off as possible REITs will probably give you your highest return. Alternatively you could go to local meetups, find the absolute best investors with long track records of success, and offer to fund their deals as a silent partner for some part of the profit and equity.

Thomas Watson · Answer

Sorry I didn't respond.

Ideally, long-term.  I prefer not to think about having an empty unit/room the next day or next month and trying to find another person to rent it out.  The ideal scenario is me investing money into either a property or an investment fund and then collecting the return on a monthly basis.  The return could be a dividend, rent payment, etc.

I prefer multiple cash flows so properties with lots of rooms/units interest me.

Antonio Bafia · Answer

Do you know what type of an investment you are interested in putting your money towards? That will play a pretty big part in the amount of time you will have to commit and the ideal location for you. More than happy to discuss more if you are interested.