How to Invest in Real Estate on an Average Income
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This is a sponsored post written by me on behalf of DiversyFund. The opinions and text are all mine.
Common sense and expert advice tell you to invest so you can reach your future goals, whatever they might be.
It makes sense. You have to save and invest now if you want to have money later on.
All of your life goals and future dreams, like retirement, travel, and more will require money. The best way to build up money for those future dreams is through making smart investments.
However, it can seem daunting to start investing. If you don’t have a large income or a lot of assets already, some investments may be out of reach for you. But that doesn’t mean you should give up on the idea of investing.
Instead, you just need to find other creative ways to invest your money.
One popular investment strategy is real estate investing. Contrary to popular belief, you don’t need thousands of dollars to get started with real estate investing. At least, not anymore.
It is possible for you to invest in real estate on an average income. Here’s how.
Why Most People Don’t Invest in Real Estate
There’s only a small percentage of people who invest in real estate. There are a couple of reasons for that.
No Investment Knowledge
Some people feel they need to know everything about investing before they dive into it. Or, they think real estate investing means they have to be a flipper or a landlord.
While those are ways you could invest in real estate, there are other options. You don’t necessarily have to be a house flipper with home renovation or contractor experience. And you don’t need to own rentals and deal with their accompanying hassles. You can invest in real estate another way.
Short on Time
What’s another reason some people are not investing in real estate? They feel like they don’t have time to do it.
When you work every day it’s not easy to set aside the time to learn about real estate investing and find properties you want to invest in.
Thankfully, you don’t have to be an expert in real estate investing or spend hours researching properties.
Lack of Money
One obvious reason many people don’t invest in real estate is that they lack the money to do so. If they’re already living paycheck-to-paycheck, having money to set aside for saving and investing is going to be difficult.
Wealth inequality compounds the issue of investing. Those with wealth use it to create more while those without it barely scrape by.
Women and those in a minority group may have a harder time investing because they usually have lower incomes. As you’d expect, this further lowers the likelihood that they will invest.
Their funds are limited, so they think their investment options are too. However, by not investing at all, this could be costing them thousands for their future goals.
To combat this, start by finding simple ways to save money. Look at your spending and see if there are things you could cut down on or eliminate. This can give you the money you need to invest.
How Ordinary People Can Invest in Real Estate
The average person can invest in real estate if they truly want to. There are more options available with lower income and asset requirements to make real estate investing more accessible to the average investor.
Find a Partner
One way you can get started investing in real estate with limited funds is to find a partner. This could be a realtor you really trust, a friend, family member, or a partner.
Combine your resources, ideas, and money for investing. It might be a small start, but it’s a start just the same. Plus, it will require less money than investing on your own.
Invest Through a REIT
Even if you don’t have a huge income you can make smart investing choices. One way to do that is with a REIT. But not all REIT’s are created equally. One that we like is DiversyFund’s investment opportunity.
DiversyFund’s aim is to bridge the wage gap by enabling people of average income to invest in real estate. They offer everyday people the option to invest in commercial real estate, specifically apartment complexes needing improvement. This kind of investing is called a real estate investment trust, or REIT, for short.
In a REIT, you pool your money with that of other investors so everyone shares in the profits. Typical REITs require six figures to invest in them and are only open to wealthy, accredited investors. But, DiversyFund just announced that they received a qualification from the SEC to open their fund to everyone for $500.
It’s a great way to help you build wealth just like the one percent.
Don’t miss out on this great investing opportunity. With a REIT through DiversyFund, you can invest in real estate on an average income.
Would you like to invest in real estate even though you only have an average income?
John is the founder of Frugal Rules, a dad, husband and veteran of the financial services industry whose writing has been featured in Forbes, CNBC, Yahoo Finance and more.
Passionate about helping people learn from his mistakes, John shares financial tools and tips to help you enjoy the freedom that comes from living frugally. One of his favorite tools is Personal Capital , which he used to plan for retirement and keep track of his finances in less than 15 minutes each month.
Another one of John's passions is helping people save $80 per month by axing their expensive cable subscriptions and replacing them with more affordable ones, like Hulu with Live TV.