Real Living Wareck D'Ostilio
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Property Investing: How to Find Capital in Your First Property

by The Urban Specialists 04/26/2020

Photo by Jonathan Rolande via Pixabay

Dipping your toes in the real estate investing waters can feel intimidating--especially when it comes to making a large up-front investment. Although there are ways to get started in real estate with lower up-front costs (low- or no-down payment VA and FHA loans, for instance), it's smart to have some savings to cushion your first year. Here are a few ways to find the money for your first investment property--even if you're operating on a shoestring budget. 

1. Make Some Sacrifices 

Think investing should be sacrifice-free? It's a thought popular with the Instagram philosophers of today--you know, just secure the right mindset and the money will follow. Unfortunately, real life--at least, the real estate investing life--doesn't work that way, especially at first. Cut back your discretionary spending and earmark it to begin your investment portfolio. Your side hustle might be the springboard you need to save up a down payment for your first property--if you're willing to do the work. Tighten your belt until you close on your first property, and you'll reap the rewards in the long-term. 

2. House Hack Your Existing Property 

Already own your home? Consider renting out a room, or setting it up as an AirBnB. If you have a partially-finished basement or mother-in-law suite, you could even renovate to create a true ADU (additional dwelling unit). Et voila! You're off and running as a real estate investor, improving your monthly cash flow scenario in a way that allows you to save for a larger investment down the road. 

3. Know Where Your Money is Going 

If you don't already have a budget, get one. No matter what system you use, you need a system--whether it's Dave Ramsey's envelope system, an online program like YNAB or Minted, or an Excel spreadsheet of your own design. It's also smart to talk to a financial advisor and/or accountant as you set goals and adjust your budget to fit your needs. No matter how much capital you are (or aren't) working with right now, an advisor can help make sure you're taking big strides in the right direction. 

You'll find that if you're dedicated to your goals, it's incredible how quickly you can stack up enough savings for a down payment on your first property. Impatient to get started? While you're saving, learn everything you can about the market in your area. The time you spend saving and educating yourself will change your life. 

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The Urban Specialists

CITY RESOURCES The great thing about urban centers is just how much stuff you find around you. Your favorite restaurants, cultural activities and museums are within walking distance of your front door. It's convenient and adds to how much you get out of your place. For more info on New Haven, check out these links: Info New Haven Visit New Haven We are passionate about the environment. We are eager to help you to add value to your current home, save money on utilities, make your lives more energy efficient and eco-friendly, and generally live a "greener" lifestyle, all without sacrifice. For more info on green living in New Haven, visit these sites: CT DEEP Neighborhood Housing Services of New Haven USGBC's Green Home Guide We care about historic properties and their communities and wish to encourage preservation of our community's architectural and cultural history. For more info on New Haven preservation, check out these links: CT Trust for Historic Preservation New Haven Preservation Trust Historic Homes Downtown Areas Neighborhoods Green Homes Bethany Branford Guilford Hamden New Haven North Haven Orange West Haven Woodbridge Olivia C. Martson Olivia Martson is a long time resident of New Haven. She lives and works in downtown New Haven and is thoroughly familiar with the pros and cons of urban living. From 1992-1997, she served on the New Haven Board of Alderman as the elected representative for Ward 2, the downtown neighborhood immediately west of Yale University. Fore more : Biography - http://media.mlspropertyfinder.com/418613/preview.jpg