For people who want to buy a rental property, you can make a sizable income for yourself. But you already know that, I am assuming.
But you just can’t buy real estate (a home, office space, condos or apartments, for example), without having a down payment. The down payment isn’t even the final ‘first’ lump sum of money that you will need to buy a property. You will also have to come up with the money to pay the closing costs, at the time of signing.
Many people who are thinking about going into the real estate business think first about the money they will bring in from it, second about the costs of maintaining it, and unfortunately, they think about the down payment last. Not to mention the taxes and insurance that they will have to pay on that property.
If you don’t have the money to be able to put a down payment, plus closing costs, how in the world are you going to come up with the money for maintenance and taxes?
Take heart in knowing that you are not the only one that faces this problem – many people, worldwide, have the same issue.
You could talk with a bank about a loan, but you will also need a down payment for that, since you don’t anything to put up for security. (Real estate). They need some kind of security to make sure that they will get their money back. They can’t take any chances. And there’s no guaranteed mortgage approval too.
Depending on the real estate that you are buying, you will have to decide how much money will do into repairs. Either doing it yourself or hiring someone to do it for you. Painting, maintaining the yard, etc., are some of the things that should also be considered.
When you are sure that you want to invest in real estate, no matter how big or how small, your best bet would be to save the money for the down payment and closing costs. Also have a little extra for what work will need done to the property before you can rent or lease it out.
And plan to budget your money so that when the taxes come in, you can pay them immediately. If you neglect to pay the taxes, the county (or whomever you pay taxes to) can actually put a lean on your property. This means that if you don’t pay them, they can (and will) take your property, leaving you with nothing but a huge loss of money.
I have probably left some costs out, as there are so many, but when you want to invest in real estate, you must be informed. First consider the taxes you will have to pay, what your insurance costs would be, research the costs of new roofing, water heaters, heating and cooling systems, plumber and electrician and handyman services, etc. , and make your decision from there.
When you are properly prepared (which you CAN be) for the above costs, you will be able to have your dream of owning real estate, and earning income from it.