7 Simple Ways To Invest In Real Estate (Even If You're Broke)

Thanks to Fundrise for sponsoring a portion of this video.

In today's video, we’ll discuss 7 different ways to invest in real estate no matter your level of income.

When people think of real estate investing they think of a super capital-intensive business, which it absolutely can be, but there are now other options out there for the everyday person to be able to get real estate exposure in their portfolio.

If you look at what smart money, such as endowments and institutions invest in, they typically have an average of 30% of their portfolios invested in private markets or deals, with real estate being a portion of that.

This provides stability and proven performance over time for them.

Most people don’t have access to this type of investment available to them so we’ll touch on a few ways you can get that similar exposure.

Stay tuned!

#fundrisetestimonial #fundrisepartner

⏰ Timestamps ⏰:
0:00 - Intro
0:50 - Investment 1
3:19 - Investment 2
5:29 - Investment 3
7:21 - Investment 4
10:15 - Fundrise Spot
12:11 - Investment 5
14:08 - Investment 6
16:33 - Investment 7
19:12 - My Thoughts
20:03 - LOL

ABOUT ME 👇

My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos reflect my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort to every video that I make. I also believe in complete transparency and open communication with my audience.

DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.

[stanleyzac]

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[robertthurmond]

My opinion for young people is you need to be both a dividend investor and a growth investor, and you can let the market determine your allocation. pretty much how i got to my first million although i use an FA Susan Kay Mack. For example if I got a 1000% gain on Tesla, i pull 85% of the money out and put into a load of more stable dividend stocks like SCHD. So I would say diversify, but also use those growth opportunities to build the capital to invest in the dividend payers (or in cash flowing real estate)

[InteristaS]

The bots are already out of control in this comment section. Anyway good video!

[HB-winn]

I'm DCAing in LibertonCorp as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!

[Yolomamba]

loved the commercial real estate parts!

[mehmetyildirim]

Omfg! LibertonCorp turned out to be a bloody smart move. I love love love this. I’m the wrong side of 40 so I’m taking this all on board IMMEDIATELY- thank you! Even if I run out of time my kids will benefit from this incredible education. Thankyou thankyou thankyou!!

[ram_bam]

Damn Marko... almost 1M subs. Amazing.

[arigutman]

Essential stream of income, real estate is easily one of the best means of passive income as well!

[dokkmainz]

This is one of the most helpful 20 minutes 30 of my life. Thanks for the tips! By the way, I'm not sure if you've covered it in a previous video, but I was wondering if you have any advice on affiliate marketing? My workmates have suggested it before, but I'm not quite sure how it works or whether it's a profitable investment

[Todd.T]

Good info as always. I'd like to add with the SFH if certain governments get in, they may try to dictate how much you charge and if you don't have favorable mortgage rates you may be in trouble. Also operating costs have increased significantly predominantly labor and materials and energy. You need to understand how much reduction in NOI you can withstand because you will be paying out of your regular income to make ends meet and end up with NOL instead.

House flipping: A lot of people who were doing this are now in trouble. They were using cheap money from HELOC and variable rate bank mortgages and high rate mortgages from B lenders. Some have half renovated homes and over the year of interest rate increases are only able to pay the interest, but not the principle. They have received calls from financial institutions because they hit the trigger rate. The B lenders contracts are expiring and the people don't want to sell the houses incomplete and at a time of year when RE is typically down. So they are stuck.

Syndications: My favorite. I always tell people to pool their money to mitigate risk. You can be involved in more projects with the same money so if one fails, you are still good. Equity can be shares/units or seed money. Usually the seed money gives the higher returns and has the greatest risk. Shares/units are at a reduced rate but still pay more than the average investments. Debt payments can be monthly or quarterly and offer the lowest returns, but they are usually mortgages against a property, so there is more security. I like to mix them to a ratio I am comfortable with. Shares/Units can be redeemed and trigger capital gains (usually long term) while monthly or quarterly interest payments get added to your annual income making equity even more attractive. When money was cheap, I leveraged my way from mortgages to private equity. The deals that have the highest rate of return or possibility of a high rate of return cost the most to access. A decade ago, 8% return on a mortgage was $25k minimum and an 11% was $75k-$100k minimum.

CRE, another favorite. Do your due diligence and get a good property manager. This will increase the NOI and the property is worth more because it makes more. You can sell to an REIT for some capital gains and do it all over again, or keep it for cash flow, or refinance once the property has stabilized and buy another. This can be done by a group as well. I was lucky to be in such a group. We had a five year target for NOI and our genius management beat the target in three. The property was worth 100% more than what we paid. We bought it below market and rescued it and made it more efficient.

[jkopvo]

Thanks for the video! Syndication and REITs sound very similar. In comparing those two options, what do you consider the pros and cons of each? I own some REITs, so what would be the motivation to invest in a syndicate rather than continuing to invest in REITs. Thanks!

[isidorejean-baptiste]

l appreciate the knowledge in this video. As an individual that has just started his financial security journey, these types of videos are delightful to me.

[LucasPuranen]

Where in your wealth building journey would you recommend the single family rental? Seems like househacking for the 20-somethings, and those kind of properties when you’re older/have more cash on the sidelines?

[papapickett]

This is the best video youve ever made. Please more on real estate! I am going to rewatch this a couple times and decide which places suit my interests best.

Also, if youre running low on ideas, please consider doing a Fundrise review. I have been on the fence but the terrible reviews on the application have turned me off. Alot of people have lost lots of money so if I hear from you on the subject I would trust the information much more.

[jeffbarrett]

I go with Fundrise, O Realty Income, STAG and VNQ. I have no desire to be a landlord and get stuck evicting people. (or not when laws don't allow it)

[gibsonator]

Most homes in the US, average over 300k. If you are going to rent a home, with the skyrocketing in home prices, how do people pay the 1% which would be $3, 000 a month. That is the standard 3-4 bedroom maximum currently for a 300k home?

[stephan]

This 1% rule is unrealistic with average sfh going for 300-400k no one is renting a house for 3-4k a month or even 5k in some places

[karldc]

1% rule. Is that realistic in the US? Curious... That's a gross rental income yeild of 12% p.a. In Australia, you are doing well if gross rental income is over 5% of the properties value, and approached 12% only in mining towns with nothing else but the mine going for them (high risk if the mine closes).

[blairmillward]

Thanks Marko - you're really producing amazing content lately! Keep it up, hopefully the algorithm is kind to you, and you keep making more!

[SnowyMango]

Which of these options offer a DCA line capability? I’m a bit concerned with going heavily into one property all at once given the market has been running so hot