For years, real estate investing was only available to the “super-rich.” Fortunately, things have changed, and anyone in Florida can invest in real estate. Moreover, the opportunity to invest in real estate is even available to people with imperfect credit through these four methods.
Real estate investment trusts
Real estate investment trusts, also called REITs, are wonderful tools for would-be real estate investors with subpar credit scores. Investing in a REIT is much like investing in stocks or mutual funds. You earn a portion of the profits based on your investment and receive regular dividends from the trust.
Crowdfunding opportunities
You can indeed find anything on the internet, and that includes real estate investment opportunities. While real estate syndications opened the crowdfunding concept to real estate investors many years ago, there are more crowdfunding opportunities now. Different crowdfunding companies have different requirements, so you will need to ensure that you’re eligible for this method of real estate investing.
Rent out space you already own
Depending on the size and layout of the home you live in, you may already have an opportunity to become a real estate investor. Working with platforms such as Air BnB helps homeowners turn space that they own into income-generating space.
Borrow from friends or family
This method can be tricky, as some people dislike mixing business with friends and family members. However, if you have someone who can afford to offer some financial help, it’s worth checking in. Of course, you will need to come to a repayment agreement that works for both parties, but asking someone you know personally for financing is an excellent option for people with subpar credit scores.
More than 90% of the millionaires in the world have real estate somewhere in their portfolios. Knowing how to get into that industry with poor credit can help set you up for success.