While most of us struggle to make mortgage payments, there is a growing sector of the American population who are rising to the top of the economic ladder. They aren’t financial tycoons or business owners rather they are everyday or “weekend” investors who have jumped on the ex-US bubble speculative property market.
Real estate investment has always been heralded as one of the most reliable and surefire methods of becoming wealthy. Since the days of the industrial revolution people have invested heavily in local markets and even in some cases in foreign property. While it may seem incredibly intimidating to put down a downpayment that basically equates to your entire life savings there are ways to hedge the risk.
In a recent Investopedia article, author Warren Cassel explained,
“Unlike stocks, bonds, and mutual funds, investing in real estate requires a significant amount of money. Even if an investor plans to finance the acquisition or development of a property with debt, he or she will still need to have enough money to make a strong down payment to secure a loan. Although this might sound like a deal breaker for investors who simply do not have large cash reserves, ‘The Book on Investing in Real Estate with No (and Low) Money Down‘ provides practical strategies to overcome such dilemma. These include forming partnerships with individuals who have money to invest and using hard money lenders. The book was written by Brandon Turner, who is the co-founder of BiggerPockets.com, an online social network with more than 400,000 rental property investors.”
While investing with no money down might seem like something that is next to impossible for most Americans it really isn’t. The amount of investing information over the last 10 years has exploded with resources and amateur-turned-pro investors flooding social media with their best tips, tricks and strategies. The barriers of entry to investing and to the know-how behind real estate investing have dropped dramatically.
Consider that previous to the Internet, the only way to get access to in-depth information about real estate investing would be to attend a costly seminar or be luckily enough to be schooled under the tutelage of an experienced investor. Online communities like Deeperpockets allow investors to really get into the right mindset,
“BiggerPockets is a social network. This means no matter where you go on the site, you can engage with others and grow your knowledge, skills, and confidence. Your Dashboard is your home-base of this social network where you can keep up on the activities of your colleagues, check out your “Post Score,” listen to the latest Podcast, and much more.”
Online communities like Deeper Pockets provide a foundation for every day people to learn more about the real estate industry without having to invest a lot of time and money up from. The result is a boom in the number of individual investors entering the US property market.
We spoke to Sarah Williams, a full-time investor and realtor who sells luxury homes for sale round rock tx, Sarah spoke of her journey through various online communities as the catalyst that eventually brought her into the local real estate market. She explained that connecting with local investors and understanding the market while listening to others stories allowed her to transition into a career she might have otherwise never been able to access.
Online communities, books and TV shows – the list of resources to learn how to invest is endless. The most important part of all of these is taking action and trying one of them out.