6 SMART Ways on How to invest in Real estate with $10,000 Or Less

At one point in our lives, we have all thought about how we could invest in real estate. And for good reason, it’s a vehicle that can make you very wealthy over time.

Investing in real estate is one of the best investment opportunities that you can take advantage of. It is a great way to create wealth, build equity and get some passive income with debt pay down and tax advantages.

However, there seems to be a barrier for entry, mostly psychological, that to get started investing in real estate will require a lot of money.

Can I invest in Real estate with $10,000 or Less?

Having only $10,000 or less, it may seem difficult to invest in real estate, or to even wrap your mind around it, but this video will show you how it is still possible to start your journey in the real estate game.

Now that path you take will be determined by your objective. Think about where you want to be a year from now, 5 years from now and even 10 years down the road.

Now as we go through the different ways on how to start investing in real estate with 10K or less, figure out your path and use the funds you have to get you started.

Before we got over some of the different ways on how to invest in real estate, I’ve tried a lot of different ways to make money with real estate, and didn’t have much money when I started, so I’m sure I can relate and speak from my personal experience.

Many years back I tried wholesaling houses and scaled up to 10 houses a month and was even featured on wholesaling to millions w Khang as a powerhouse wholesaler. I’ve flipped houses, have my real estate license and currently flip land and looking to start developing on the infill lots I’ve been purchasing.

The first step in investing in real estate is defining your investment goals. Ask yourself why you want to invest in real estate, and what your long-term financial goals are. This will help you determine the type of real estate investment you want to make, and the strategy you will use to achieve your goals as we’re going through this.

Once you know that, you then need to research Your Local Real Estate Market.

The real estate market is different in every city and state. Researching your local market will help you determine the best investment opportunities that align with your goals. You can use online resources, such as Zillow or Redfin, to research the local housing market trends, average home prices, rental rates, and vacancy rates. You can also network with local real estate investors to get insights on what strategies are working for them and then, then, come up with a plan that aligns with both your objective and local market.

The first and most popular way to invest with little or no money, is…

Wholesaling

This will be my unbiased feedback on this strategy. Some would say wholesalers aren’t investors, they are the middleman and so on. To be a successful wholesaler, you need to be excellent at negotiating, sales, and marketing. It’s not easy by any means.

If you don’t know what it means to wholesale real estate. Essentially you are acting like the middleman. Your goal is to find off-market houses or land and negotiate a purchase price well below the market value. You then sign an agreement between you and the seller with that agreed purchase price.

There’s verbiage in the contract that allows you to sell your equitable interest in that agreement to an investor, who actually has the cash to buy it. So, if you and the seller agreed on 100K, you can assign it to the real buyer or investor for 110K and make 10K as your assignment fee.

Some of the pros and cons of this strategy. You’ll learn how to market and talk to sellers, and how to acquire real estate well below market value and can use that skill later when you decide to pivot in your real estate business. Also, you don’t need a lot of money to start, just a lot of sweat equity and marketing.

Cons would be that when the market is crazy like it’s just been, it’s very difficult to find deals. Also, marketing can get expensive, depending on which form of marketing you choose. I did this for a few years, and scaled myself out of business because I was overleveraged on my marketing, and the deals were drying up. We were marketing with PPC, direct mail, text and radio and our monthly spend was like 15K and we went 6 months with no deals after Harvey hit Houston. And then ended my wholesaling strategy, but that doesn’t mean it wont work for you.

Next strategy is…

Flipping houses

If I were to go back in time, I would have taken those wholesale deals down myself and flipped them.

Flipping houses is the process of buying a property, renovating it, and then selling it for a profit. The goal of house flipping is to purchase a property under market value that needs work, and then make improvements to increase its value, based on recent comps. Once the renovations are complete, the property is then sold for a higher price than the purchase price and renovation costs, which create the profit that you make.

Now you can’t flip that house if you only have 10K, but you can partner up with someone who has the experience and the cash and work out a profit share. If you found the deal and are willing to add value in other areas and can be a great opportunity to learn and make money.

There is more risk involved here than if you were to just wholesale the deal, but there’s a lot of upside to flipping in the long run. Successful house flippers often have a strong understanding of the real estate market, renovation and construction experience, and a network of trusted contractors.

The reason that I think this is a great long term strategy, even though it’s a flip, is because you can create passive income, if that’s your objective with the next strategy, which is..

BRRRR

BRRRR is an acronym that stands for Buy, Rehab, Rent, Refinance, and Repeat. It is a popular real estate investment strategy used to acquire and finance rental properties with the goal of creating a passive income stream.

It’s essentially a flip but with a few extra steps. Which is the rent, refinance and repeat part.

Rent: After the property is rehabbed, the next step is to find tenants and rent out the property. This generates cash flow, which can be used to pay down the mortgage and other expenses.

Refinance: Once the property is rented out, the next step is to refinance the mortgage. This involves getting a new mortgage that pays off the initial loan or private money and provides cash out to the investor. The cash out can be used to reinvest in your next brrrr.

Repeat: The final step in the BRRRR strategy is to repeat the process. Once the property is refinanced, the investor can use the cash out to purchase another property and repeat the process, building a portfolio of rental properties over time.

This way you have some built-in equity and cash flow and can build up your real estate portfolio. This all ties back to your objective, which we touched on earlier.

The next strategy is a little less talked about but is becoming more and more popular these days. Its one that I’m doing now, and that’s…

Flipping land

I’ve made a lot of money simply buying land and selling it for more. Land flipping is where we find land, buy it for around 40-50% of its resale value and then sell it for more.

Now you can add value and increase the exit price by either adding utilities, subdividing, or even developing. You can also seller finance the land and act like the bank, and create passive income that way as well.

When I first started buying land, I would buy lots for $1000 and sell it for about 7-9k and just repeat the process. Once I did a few of those I scaled to more expensive lots, where my average profit was at least 20K per lot.

So starting with less than 10K is very doable in this business.

The next strategy that I’m looking to take on this year, which is very new for me and something I hope does very well is..

Developing

I’m mostly focused on infill lots and looking to start building either a duplex or single family residence and either sell it for cash or refi and keep as a rental.

So how can you do this with 10K? Well, you can possibly buy the lot yourself and then approach a local investor that has experience with new construction and team up on it.

I recently had a phone call with a gentleman in his early 20’s with 30 new builds completed already. He had no money when he started either but was able to put the deal together. So, this is possible for you as well.

My goal is to do about 10 a year, sell 8 and keep 2. I want to build wealth and have a well balance portfolio of assets. Again, this goes back to your initial objective and how you’ll get there.

So, let’s say that you have very little money, like a couple thousand dollars or less. Then I would even consider the next strategy, which is..

Real estate License

This is similar to the car detailing business but you’re offering a different service. This is also a low startup cost business that you can make 10K a month if you take it seriously.

To make money with a power washing company and to have the greatest chance of success you should.

Offer a range of services.
Price your service competitively.
Invest in quality equipment.
Build a strong brand and market your services.
Provide excellent customer service.
Form partnerships with local businesses.
Expand your services if possible.
Focus on repeat business.
Keep track of your profit and loss and scale

After doing some research online upflip stated the average pressure washing business made nearly $96,000. That’s pretty impressive because most power washing companies are one-person operations.

You can start small and as you get paid clients; you can reinvest into better equipment and scale to 10K A MONTH.

TO START you may need to invest in a:

Pressure Washer
Vehicle: to get to your appointments
Auto Insurance
Website and social media pages
Nozzles and Hoses
Marketing expense to get your name out there
And Cleaners and chemicals

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