How Much Cash Should You Have Before Investing?
How much money should I have before I start investing in real estate? This is a question we hear often. Anyone can learn how to invest their time and money into real estate property. You don’t need to be a millionaire or have $100,000 to buy tax liens. Let us help teach you how!
You may watch the video above, or if you prefer, read the transcript below.
How to Start Investing: Slow And Steady Wins the Race
If you are wondering, how much money should I have before I start investing in tax liens? The good news is you don’t need much money if you are looking to learn and invest in tax liens or tax deeds.
If all you have is $1,000, that could be enough to get you your first tax lien investment. But there are some important things to keep in mind if you start with little to no money on real estate investments.
Is It Worth Investing With Little Money?
If you start with real estate investments for only $1,000 or less, you will be able to purchase a tax lien on a property somewhere in the country. However, you might not be able to invest in a large property.
Investing in a much larger property will ensure a significant return on investment when it’s time to sell it for profit.
Smaller properties will be harder to sell and turn a profit on. It might be worth your time saving up money to acquire the more significant property. Doing so will guarantee a bigger return on investment. Do your homework and get educated.
Learn More About Real Estate Investment
How much money should I have before I start investing in real estate? The answer to that question is that you don’t need as much as most people think you would need, especially if you invest in tax lien properties.
You could get started with as little as $1,000. However, to make significant returns it would be worthwhile to invest more.
We are here to help; we have been training like-minded individuals such as yourself, who are eager to get into the investment business for over 25 years. Click here to get started today!
Please browse our website for more information about this fantastic investment opportunity and take advantage of our library of educational videos to start investing today!
Read the Video Transcript:
How Much Money Should I Have Before I Start Investing?
Randy: Welcome, I am here with Ted Thomas, who is the Authority on Tax Lien Certificates and at Tax Deeds and auctions and this type of real estate investing which is kind of interesting. We’ve been talking a lot about the different opportunities that are out there with either the tax lien, the tax deeds and how to approach that and some of the things to think about.
Randy (cont’d): One question we haven’t really touched on yet, Ted, is what kind of money do you need to get into this? You know, this type of investing. How much money should I have before I start investing?
Ted: Well, first of all, it’s a money business, but you can start small. I mean, for example, a little parcel of land worth $5,000, probably has a tax of $300 or $400 on it.
Ted: And the tax lien might pay 18% or 20%, but if you’ve invested 300 bucks and you make 20%, that’s not very much money, but you could start at that level. I have seen houses, complete houses, actually sell at auction under $1,000. So you can start small and kind of grow it.
Ted (cont’d): But I would tell people if they’re really going to do it to think about it and maybe use your IRA money, or your Roth IRA money, or save up a little bit of money so that you if you’re going to buy property, you probably don’t want to buy something that’s very, very small, because you’re not going to have enough profit return for the amount of work you have.
Ted (cont’d): So I have many investors that want to start with $1,000 or $2,000. And I say, yes, you can do that, but when you sell a property that you bought and you only make a few thousand dollars, you’re doing a lot of work. So why not get enough money together so that you can buy something that’s going to be substantial.
Ted (cont’d): So to answer the question, I’m not hedging, I’m just saying, you’re going to start with a less than $1,000. But think about where we are. We’re in the business of teaching. We want them to try to make somewhere between $25,000 and $50,000. If you want to make a little less than that, yes, we can teach you that, but you don’t want to start out too small.
Ted (cont’d): You do want to get your money together and while you doing that, get yourself educated, you’d be better off saving the money, developing funding sources and things like that, then you would be buying a lot of small ones, doing a lot of work and not making a great return.
Randy: Well, I guess what they can do right now is while they’re saving that money, you just mention, getting educated. And that’s what Ted does, and that can get started and learn a little bit more about what Ted has to offer and some of the courses he has to offer. They can do that right at your website, Ted. Well, go ahead and tell them how to get to your website.
Ted: Folks, you can go to tedthomas.com and you can see everything from videos to auctions taking place to people in room studying to the point where we even show you real people making deals and how much money, they’ll tell you how much money they made. And now these aren’t just testimonials, they basically case histories of people that started out.
Ted (cont’d): And we have people in foreign countries, it’s not unusual, but people in foreign countries to buy in the United States, because this is such a bastion of capitalism. This system works for people outside the United States. Anybody can buy a property in the United States. So it opens up a whole market for people, especially in the online techniques that we teach.
Randy: Yeah. It seems like there’s a lot of opportunity there. So, hey, squirrel away those dollars, but in the meantime, Ted said, head to his website, tedthomas.com and start learning about how you can take advantage of some of these opportunities.
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