Every venture has some basic requirements.
First of all, you need to know about the business that you are getting into. If you don’t know what it is about, you’ll have a hard time being in the industry.
Next, you must do your research. Without doing the market research properly, there is no way you can build a good strategy. And then you have to build a good team and last but definitely the most important one – the funding.
In real estate, you can easily do the right research, develop a good strategy, and eventually meet a group of remarkable people to help you with your venture. However, funding a deal is not as easy as finding a good researcher.
As this article is targeted towards newbie real estate investors, let’s talk about 3 easy ways to fund your first real estate deal when you don’t know anyone or don’t have any credibility.
Your Piggybank
There’s nothing more satisfying than starting your thing with your own money. It’s a no brainer. You feel like the captain of your own ship and the compass to your route. So, it goes without saying the very first bank account you should check for is your own when you plan to start your career in real estate.
Check your bank accounts, retirement, etc. to assess how much you have and how much you are willing to pay for a deal.
Friends & Family
Sometimes, you may have an excellent strategy to start your venture. But you may not have the savings to invest. So what do you do?
You have crowdfunding, bank loans,and other options. But they are more complex and you need to deal with a lot of paper work for that. However, there is one other, a simpler way, to manage capital to start the venture – Your family and friends.
You have your relatives and your buddies to help with the finances and if you think you can get a good return from the deals you make, you can also offer them a chance to be a legit investor in your venture. This way, the profit will appeal to them and make them lend you their money to be invested.
Crowdfunding, Bank Loans, Money Lenders, and other conventional ways
If you don’t have enough savings to put into a real estate deal and you can’t manage from your friends and family either, you have the option to approach the conventional methods of getting capital for a venture, like crowdfunding, bank loans, etc.
However, these are comparatively difficult to get for a newcomer because no one wants to bet on the horse they never saw run.
The bank and money lenders will ask for your portfolio, experience, etc. which are hard to manage for a newcomer. However, if you have a solid strategy and have done good research on the neighborhood, you have a good chance of getting capital from crowdfunding platforms, money lenders and even banks. So now that you know the three best ways to manage capital for your first deal, it’s time for you to actually prove that you are worth the investment.
