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Getting Money For Real Estate Investing

Real estate investing can be an extremely powerful way to create wealth. It involves simply, buying houses, then renting them out and receive passive income. The only problem is that it can be pretty hard to come up with enough money to acutally pay cash for a house.

So how to you start beginning real estate investing if you do not have a few hundred thousand dollars lying around? There are many different strategies that allow you to start financing rental investments, in fact here are 3 great ones.

1. Banks

Most banks will be happy to give you a loan, provided you have good credit, income, and the property is cash flowing. However the more properties you own the harder it will get to take out a loan from a bank. Banks can help you to buy a few extra rental properties, but if you want to build an empire, sort of speak, then you will run into a lot of problems with this strategy.

2. Hard Money Lenders

Hard money lenders are people who will basically lend you money with a high interest rate. Each hard money lender has their own rules so be clear about your intensions and figure out theirs.

3. Investors

Plenty of people are going to be willing to lend you money if they think they will get a decent return out of it. If you know someone who has money lying around this can be a great strategy. You might simply borrow money from them and pay it back with some interest, or you might want to split the cost of an investment. Another thing you can do is to split the downpayment with a partner, but to use their credit for the loan instead of yours.

4. IRA

Buying a real estate investment in your IRA account is another potential. If you have an IRA account, you can use it to buy a rental property. Banks are willing to lend to IRA accounts to buy real estate. The best part about these special loans is that they allow investors to get into a rental property without having to show your own personal credit. Instead the decision to loan to you or not is determined 100% by the rental property itself. It could be something interesting to look into.

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