How To Buy Real Estate On A Budget

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If you’re considering learning How To Buy Real Estate, then I can honestly tell you that now is the best time ever to learn the process and accumulate a good amount of properties regardless of your current financial situation. The economy doesn’t really even play a part as people make fortunes in both good times and bad times as long as they know what they’re doing.

So I decided that I’d give you my quick and easy formula detailing how to buy real estate, even if you’re on a limited budget and don’t have spare cash to throw around.

First, you’ve got to realize that if you’re planning on holding Real Estate long term, which I recommend, you’ve got to have a decent emergency fund in place, so I’d advise against the buy and hold strategy at first. I’d recommend that you get your feet wet, by flipping properties, as that is the absolute easiest way to learn how to buy Real Estate and all of the niches within it without the added risk. That way you can start getting some cash banked as well.

Once you’ve got a decent “base” (and I’d recommend at least $10,000, but preferably $20,000), and have gained some knowledge regarding the different ways how you can buy Real Estate, then I’d recommend implementing the buy and hold strategy, but starting slowly as you learn how to buy Real Estate.

In my opinion, it’s important for you to continue to buy just as if you didn’t have any money banked. That way, it will limit your risks, and you won’t overpay for a property. It’s more important to make sure that something is a real “deal” than it is to buy your first property. That’s not necessarily the case if you’re just learning to wholesale property as there’s more “safety factors” in place for you.

If you’re at that point in the process, then the best way I’ve found regarding how to buy real estate would be to find a killer deal, where the owner will hold a note. There are even instances where you can do this and get the seller to hold a personal note for the property as opposed to a mortgage. If you do this, then you can refinance the free and clear property and obtain a line of credit on that property.

Once you have this in place, then it’s pretty easy to continue the process of learning how to buy real estate. Your next step will to be to find additional deals, buy them with cash out of your line of credit, and then refinance the properties that have no mortgage on them.

If you’re still struggling with implementing the process of buying real estate, remember, you need to be creative and open minded. If you don’t find a deal where the seller is that flexible, maybe you’ve got equity in your home that you can use for a line of credit. Worst case scenario, you just keep flipping until you bank enough to buy with cash (in addition to your emergency fund).

The main thing I would caution you if you’re just starting this process of learning how to buy real estate, it is to make sure that a deal is a deal, and if you’re starting to hold properties, don’t buy as fast as you can. Keep in mind that emergencies will happen, and you want to be prepared and have a little experience under your belt before you have to tackle numerous emergencies at once.

Hope that gives you a little bit of insight on how to buy Real Estate when you’ve got limited funds!

As always, I’m here to help!! Press on!!

Jason B. Simpson