Real estate is a tried and true way to build wealth. This is as applicable to everyday people as it is to real estate investors. After all, growing your nest egg through owning a home is part of the American Dream. For investors, finding the right property at the right price is tantamount to winning the lottery and striking gold at the same time. So – what are some real estate investment hacks you can start using today?
You’re in luck because you have Lionshare Lending on your side. Our founders have been helping clients find and secure the right funding for over forty years. In the decades between then and now, we have learned what works and what doesn’t. More importantly, we have learned simple real estate investment hacks you can start using today.
Keep reading to learn what they are and don’t hesitate to call us today at 855.505.LEND to get your loan process started. We’ve helped hundreds of investors and earned our reputation as the nation’s premier private commercial real estate lender.
Find a Mentor
Andrew Carnegie once famously said, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
These real estate millionaires, investors or savvy homeowners, all have one thing in common – they have had a mentor at some point in their life. They have someone to show them what works and avoid what doesn’t work. They have someone in their corner, guiding them through the various challenges, making the successes even sweeter.
So, the first real estate investment hack you can implement today is to find a mentor. They don’t have to be an investor. In fact, veteran Realtors®, mortgage brokers, and real estate appraisers often make the best mentors. They’re in the market firsthand and can show you the types of properties and deals that work.
While the term house hacking itself is relatively recent, this idea has been around for centuries. House hacking is when you have tenants pay for your primary residence’s mortgage. One way this is done is by taking a small guest room in your home and renting it out on Airbnb, however we are more interested in the idea of rental properties as a more efficient way to house hack.
This can be accomplished by purchasing a rental property in a hot market and using the rental income to make your mortgage payments. This requires a keen eye for investment and, truth be told, will require you to look at many properties to find the right one. House hacking might sound complicated at first, but that’s one reason you’re going to want to have a mentor in your corner to help you along the way.
The rise in crowdfunded real estate is our next real estate investment hack you can start using today. While just about every industry has been impacted by the crowdfunding revolution, real estate crowdfunding is still in its infant stage.
Crowdfunding real estate offers a way for new investors to get started immediately, oftentimes in a micro investment format. Micro investments are real estate investments that are very small in nature, sometimes as low as $1,000 – or less. While these micro investments don’t produce the same results as traditional investing, they’re a way for novices to dip their toes in the water.
Make Use of Hard Money
We’ve saved the best real estate investment hack for last you can start using today. Because we are particularly passionate about hard money lending, we want to emphasize what an important tool this is in your investment arsenal. That makes sense, after all we’ve been in the business for decades, and have seen firsthand the flexibility and competitive edge that hard money offers.
Hard money offers a number of real estate investment benefits, including:
- The ability to secure funding quickly, which leads to more closed deals.
- A reduced amount of paperwork & fewer financial hoops to jump through.
- The ability to stand out from the crowd with cash-in-hand.
- No prepayment penalties.
- LTVs (loan-to-value) as high as 70%.
These benefits, and many more, make hard money an attractive option for real estate investors. If you’re an experienced fix and flipper, or any type of real estate investor, who needs funds to help you complete your project – call Lionshare Lending today at 855.505.LEND. Our team of dedicated loan professionals can help you get the capital you need exactly when you need it.