If you want to buy a house or invest in the property sector, you must have some basic knowledge of real estate financing. This episode of the podcast will help you gain a deeper understanding of the things you would need to do and understand.
Society has deeply ingrained in our mind that one should have an insane amount of money to make investments in the real estate sector. Unfortunately, this notion has withheld many from entering this sector. But, guess what, this is just a myth!
A person does not need to have a lot of cash in hand to buy a property. It is achievable with minimum resources. Some of the strategies and tactics through which you can make efficient investments in estates are mentioned in this podcast.
Firstly, purchase a property through a mortgage or real estate investment company financing. This should be in an area that has an economical cost of living. Since, the mortgage value would be much less in such an area, it will make the real estate equity cheaper as compared to that in an area with a higher living cost.
Next, we have the BRRR (Buy, Renovate, Rent & Refinance) Strategy. This approach enables you to make profits from an undervalued property (although capital gains tax is involved in it). The buying, renovating, and renting of a previously unrepaired property will result in capital gains if it’s ensured that the mortgage cost is less than the rent. These capital gains may further be used in estates refinancing activities, making you a real estate player!
Furthermore, foreclosure properties by bank and Government HUD Repos also allows an individual to purchase a building at an excellent and reduced rate than that of its surrounding buildings’ price.
It’s easy, isn’t it? All you need to do is a bit of brainstorming, a little research, and you are there!
There are many ways to finance real estate with minimum resources. We must remember that money is not the essential element to strike an efficient deal in real estate financing, but what is of paramount importance is thorough planning and strategising.