There are so many consumers that really want to start investing in real estate but simply can’t scrounge up the start up costs. It seems like no matter what they do, they never have enough to get started. Fortunately, for most of you, the money for investing is there. But, you will have to make some sacrifices. With that said, I’d like to start this article on money saving tips by saying: there are few well known real estate investors that didn’t put their personal comforts in jeopardy for their dreams! I’m sure Brandon Turner has and I know I have! With that said, below are a few ways that you can open up some start-up funds. If you use all of these tips for one year, you should have enough money to really get moving!
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
Make Sure You Have The Lowest Credit Card Interest Rate Possible
It’s no secret, most of us use credit cards. As a matter of fact, more than half of the households across the US carry more than a thousand bucks on a credit card from month to month. During the recession, many credit card interest rates went up. Now that the financial climate is a bit better, you may qualify for lower rates. Lower rates that will reduce your payments and open up more resources for you! Now, your lender likes making money so, they are not going to call you and say “Hey, you qualify for a lower rate, do you want it?”! This part’s up to you. All you need to do is call all of your lenders and say something like, “I was going through my credit card bills and noticed that you charge the highest interest rate. Can you do something that makes these balance transfer credit cards less enticing to me?”. You will be surprised at how effective this can be!
Stop Eating Fast Food
When I was 19, I would think of fast food as a quick, cheap bite to eat. Back then, I didn’t do the math! The truth is, fast food can really rack up quite the bill. I found out that my morning breakfast burrito’s almost every morning were costing me $120 per month! Making my own, about $20. Although not everyone has a once a fast food habit, most people do eat fast food at least once a week. Even stopping that can save about $20 a month.
Shop Around The Edges Of The Store
This one is a tip not only to save money but, for health! Think of how your grocery store is laid out. All vegetables, meat, cheese, milk bread, ect… can be found around the edges of the store. When you walk into the center of the store, you find food in boxes and cans, frozen food and highly sweetened and processed treats. The truth is, any boxed or canned food costs money to prepare. Therefore, you will always spend more for that portion of food than you will if you make your own. Although, I can’t personally come up with a recipe for Doritos, healthy alternatives like carrots and ranch dressing tend to cost less. This may be uncomfortable in the beginning but, you start to crave carrots and broccoli. So, save money and get healthy!
Enjoy Free Social Activities
Human Beings are social creatures. If you don’t find free ways to be around others and have a good time, eventually, you will start spending money to do it! Check online in your area for hikes, clubs, or anything that you could think of that would be free and local. Living in the Pacific Northwest, I spend a lot of time on the different trails through the mountains and, you would be surprised by who I meet out there! No matter where you are, I’m sure that if you look hard enough, you will find something free that you enjoy and involves spending time with others. Who would have ever thought that having fun could save you money?
Make Money Doing Side Work
Everyone has incredible strengths in one thing or another. Find yours and solicit your friends, family and neighbors for your services. If what you love to do involves crafts, sight up as a vendor when the craft shows come around. If you look online you can usually find somewhere to sell your art at least once a month! There are tons of great ways to make extra money to get your investment started. All you need to do is find the one that works best for you!
Getting started in the real estate investment market isn’t about who has more money. It’s all about who has the strongest desire to succeed. Those who do have that desire will find ways to save money or make money to get started! I hope that describes you!
Photo: Philip Taylor PT