How can you get started in Calgary real estate with only $5,000?
Hands down, the biggest challenge facing 99 percent of aspiring Calgary real estate investors is limited capital. Even when they do have some savings or investment capital, they are often cautious about putting it all into a single house, at least until they better know the ropes. But everyone has to start somewhere. What legit options are there?
2 Ways to Start Investing in Calgary Real Estate With Just $5,000
Wholesaling Houses
Wholesaling houses is commonly promoted as the way to get into real estate with no cash, no credit, and no experience. It’s possible, it can be profitable. This can refer to both flipping real estate contracts and wholesaling houses with skip transfers. In reality, there are costs. They may be small, but they exist.
There are educational costs, operational costs of just being out there doing business, legal money deposits, and creating a buyers list. This can be achieved with $5,000 or less out of pocket, but it does require a MASSIVELY HUNGRY hustler who isn’t afraid to get out there on the frontline and put in MASSIVE action, energy and tireless hours.
Lease Options
Lease options can be an appealing choice for those who don’t have the credit to go get a mortgage loan from the bank. It offers the ability to control property with little upfront money and the choice to purchase it later at a predetermined price. The downside can be having to carry holding costs each month and putting up “option money” for the privilege of the choice to buy later.
If you don’t buy, that money is lost. It is also essential to conduct deep due diligence on the seller-landlord to ensure they have the ability to live up to their end of the bargain. On a low end property, one of these options is completely possible with $5,000 or less. However, if you don’t have a tenant to occupy the property, you must have access to additional cash to cover your rent, utilities, and maintenance each month.
Summary
Getting off to a safe and profitable start in real estate does not have to require a ton of capital. This doesn’t have to mean pounding the pavement and haggling with sellers for dirt cheap deals on ugly houses, either. Review these options, choose those that best meet your lifestyle and goals, investigate them further, and get going!
Investors: Anything you want add to this list? Which of these methods do you prefer?
) | Sincerely, Your Realtor Denis Hrstic |