Uncover Profitable Real Estate Investment Opportunities Beyond Rentals

Before you can reap the many benefits of real estate investing, you’ve got to buy your first rental property, which is a challenge for many investors in 2024. Keep reading to learn how to start investing in real estate, strategically fund your next investment property down payment, and fast-track your savings with alternative investments!

Summary:

• The combination of high housing prices and interest rates makes it difficult for many to buy rental properties in 2024.

• Saving up for a down payment, closing costs, and other expenses is one of the biggest hurdles new investors face.

• Real estate side hustles are a great way to not only create additional income but also learn about the industry and develop new skills.

• Short note investing is one of the easiest ways to make passive income through real estate and fund a rental property down payment.

Increasing Your Income

Today’s steep home prices, high interest rates, and stagnant wages have made it difficult for many Americans to afford homes—even with 3.5%-down FHA loans, down payment assistance programs, and other financial products. It’s equally, if not more challenging for investors who need to come up with a 15%-25% down payment and get financing for their investment property.

If you dream of investing in real estate but can’t yet afford a rental property, the best place to start is with a real estate side hustle. Honing these skills will not only increase your income and help you save up for that first down payment but also make you a better investor:

House Flipper

If you can get your hands on hard or private money, house flipping is one of the fastest ways to make money in real estate. You’ll buy a property at one price, renovate it, and sell it for a profit that can go toward your next rental property.

Real Estate Agent

A real estate agent facilitates transactions for homebuyers and sellers. When they successfully complete a deal, they receive a commission equal to a percentage of the home’s value. You can put this money aside for your rental property down payment!

Wholesaler

A wholesaler will find a property, get it under contract, and then assign it to an end buyer for a higher price. When you complete a transaction, you’ll get to pocket the difference between the buying price and the selling price.

Bird Dog

A “bird dog” is someone who scours neighborhoods for undervalued properties and brings them to other real estate investors. For each successful lead, you’ll receive a percentage of the transaction price.

Saving for Rental Properties

Raising the funds for your new rental property requires careful planning, cost calculations, and strategic saving methods. Follow these key steps to kickstart your savings:

1. Plan Ahead

First, when do you want to purchase your rental? Even if you’re years away from buying property, it’s never too early to have the end goal in mind and start talking to lenders. This will give you an idea of what you can afford, the type of loan you might need, and which costs are your responsibility.

2. Calculate Costs

Next, calculate the all-in costs for your rental property. Of course, you’ll need to come up with a 15%-25% down payment, but you’ll also need to account for loan application fees, inspection fees, appraisal fees, legal fees, and any other closing costs, as well as renovation costs (if they’re not financed) and reserves.

3. Set Money Aside!

Finally, create a budget, allocate a percentage of your monthly income to savings, and, most importantly, follow through! Let’s say you need $30,000 for your next rental, starting from zero. If you commit to saving at least $500 aside each month, you’ll reach your goal in 60 months or sooner.

Maximizing Your Savings

Saving a percentage of your monthly income is a good place to start, but stashing that money away in a bank account is a missed opportunity for growth. The best way to build wealth is to invest your money where it will work the hardest for you.

After all, you’re going to need more than capital for a large down payment. You’ll also need funds for closing costs, renovations, bills, and other expenses, and these passive real estate streams could help you generate this extra income:

Real Estate Investment Trusts (REITs)

These real estate investment companies buy, manage, and sell residential and commercial properties. As the investor, you will receive regular dividends and share in the profits as the assets appreciate and are sold for a higher price.

Crowdfunding

Real estate crowdfunding is the process of pooling funds from a group of investors online. This allows them to purchase much larger properties than they would be able to purchase on their own, and in return, they share the profits with their investors.

Syndications

With a syndication, the operator will pitch a property (or portfolio) to investors and raise capital for its purchase. The operator is responsible for not only buying, managing, and selling the property but also making sure their investors profit from the deal.

Introducing Short Notes

Finally, there are Short Notes—alternative investments that allow you to fund a wide range of residential and commercial real estate projects across the United States. These short-term debt securities give borrowers capital for larger real estate investments, and in return, they pay their investors monthly passive income at a fixed interest rate.

With a company like Connect Invest, you can take advantage of these passive investment opportunities without having tens of thousands of dollars to invest or being an accredited investor. Connect Invest makes it easy for the average investor to get on board, with minimum deposits of just $500 for annualized interest of up to 9% and terms between six and 24 months.

By partnering with Connect Invest, you’ll see the following benefits:

• Collateral-backed, first-position loans in hot markets
• Fixed interest rates
• Monthly passive income
• Defined exit dates
• Available to non-accredited investors
• Low minimum investments
• Buffer against market volatility

Especially if you’re saving for your first or next rental property, Short Notes could be your gateway into real estate investing and one way to expedite your progress!

Invest in short notes today with Connect Invest! 

The Importance of Strategic Saving

If you want to grow your money at a much quicker pace, explore some of the wealth-building saving strategies we’ve covered above.

After all, the faster you save, the faster you can own rental property, and the faster you can own rental property, the sooner you can reap the many benefits of real estate investing:

• Passive (or active) income
• Mortgage paydown
• Long-term appreciation
• Tax benefits
• Portfolio diversification
• Buying assets with leverage

How to Get Started with Short Notes

Ready to make your savings work harder for you? Investing in Short Notes today is one of the simplest ways to earn passive income, grow your wealth, and roll your profits into your next rental property. Connect Invest has a minimum investment of just $500, and they allow you to lock in a 7.5%-9% interest rate across terms of six to 24 months.

The process is as simple as creating and funding a Connect Invest account online. You don’t need to be an accredited investor, and you’ll start earning passive income just one month after activating your account!

Reach Your Real Estate Investing Goals Faster

Saving up for an investment property down payment, closing costs, and reserves may seem like an enormous challenge in 2024. You can fast-track your progress, however, by diligently saving money, investing in alternate investments, and increasing your income with various real estate side hustles.

Create and fund your Connect Invest account to get started with short note investing today and take a huge leap toward your real estate investing goals!