For many individuals considering getting into real estate investing, they’ve been inspired by the prospect of building their personal net worth and amassing a fortune sufficient enough for them to retire comfortably - or to continue living in the style to which they’ve become accustomed. However, a quick glance at notable real estate investors might make people think that real estate investments are only for those that already have a substantial amount of disposable income available to them. The good news is, that’s completely untrue!
Virtually anyone can get started building their personal wealth by investing in real estate, and while making a substantial return requires a substantial investment, it’s entirely possible to begin building up your portfolio with smaller investments that you then continue to reinvest to up the ante.
Here are a few tips on how anyone can get involved with passive real estate investments.
Use Your Annual Bonus
We understand that not everyone is used to receiving a large annual bonus (or any bonus at all), but if you do find yourself in that lucky position, consider immediately reinvesting it. There are many people who count on their yearly bonus to shore up their finances for the coming year, but if a few adjustments can be made to your budget throughout the year, it may be possible that your bonus can be put to work making you even more money via real estate investments once it comes through.
Dip Into Savings
First of all, we here at Walnut Street Finance absolutely understand the importance of having a solid savings account. We would never advise anyone to empty out their savings and pour it all into investments. However, if you happen to be socking money away every month into a savings account and find that you have enough money to cover your expenses for a while should you need it, while also putting down a couple down payments on property, jumping into real estate investments could be a great option.
For the most part, when your money is kept in a savings account, it’s just sitting there. Unless your savings account contains a few million dollars, you probably aren’t earning a substantial amount in interest which means your money could absolutely be working harder for you elsewhere.
As real estate investments become a more attractive option for people of all ages and income brackets, a few companies have decided to put the power of crowdfunding technology behind their investment options. Investors can now, at a much lower entry point (just a couple thousand dollars) invest their money with a crowdfunding option to help get a project completed. They’ll then recieve a return on their investment, as they would with a traditional real estate investment. Of course the return will be proportionate to the amount of money that was invested, so it may take a bit more time to build up a substantial amount of wealth, but it’s a great option for those who are just starting out and are hesitant - or unable - to invest large sums of money.
For more information on investing with Walnut Street Finance, take a look at our Executive Summary.