4 real estate investments to make when you're low on capital - Business Insider

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4 ways to invest in real estate even if you're low on capital, from the 'clever investor' who went from $30,000 in debt to flipping over 1,000 houses

," Sperber started investing in real estate with no money to his name. Now, he's done hundreds of millions in deals.

He threw in the towel and got a job as a bookkeeper to pay the bills while he finished school. "It was the worst job I ever had," he said. Within 30 days, Sperber had his first big wholesale deal, and flipped it for a life-changing $40,000 profit. Having began his journey in debt, Sperber has strategized his way to hundreds of millions in deals. And he shared the strategies he said investors low on capital should use to get started. Wholesaling real estate, also known as "no money down real estate" is the process of finding and controlling heavily discounted real estate and then selling it to a cash buyer. Unlike flipping, he said, a real estate wholesaler doesn't do any renovations or additions, and carries no costs.

While most of the American public wouldn't sell their home at a discount, Sperber said about 15% of the population is often motivated enough to do so.

An average return for a subject-to investment is hard to give, according to Sperber, who said profits can differ greatly depending on expenses at hand. When you purchase a home, you're required to pay property taxes. And if a property owner defaults on those taxes, Sperber said, the city government can make a legal claim — or "lien" — against the property for the amount owed.

 

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