Things to Remember when Purchasing Property with Little to No Money Down

Property Purchase in OgdenMany of the world’s richest people keep their money in real estate and for good reason. Real estate provides passive income and holds its value against inflation. Investing in real estate doesn’t have to start big; in fact, you can start your own investment portfolio without using too much money.

Be Prepared

Take the time to prepare before you begin. You can start by securing a reserve of cash to cover expenses in case things go wrong. One of the things you may not anticipate is a high vacancy rate in the area where you invested. If this happens and you rely solely on the expected rental income to pay off the mortgage, you run the risk of foreclosure. Make sure that you have enough to cover all related expenses for at least half a year to a year, just in case.

Know Your Area

The best way to find bargains is to know the area you want to buy in. For continuously observing the property market, you’ll be able to tell if a property for sale is worth the asking price. Sometimes, after you’ve looked at an area long enough, you’ll notice deals that most property buyers don’t see.

Control Your Expenses

The difference between profitable properties and those that are not can be seen in how much you have to pay for it. Shop around for the current mortgage rates and find the best rate for your investment. If you are looking to buy a property in Ogden, then the local mortgage brokers may give you the best deal. Lower mortgage payments will give you a higher profit margin so you may want to aim for those.


If you don’t want to deal with managing and maintaining your own real estate, consider buying stocks in Real Estate Investment Trusts. REITs are required by law to distribute at least 90% of their earnings, giving you a more stable income. Similar to other stocks and bonds, you won’t be able to get a loan to buy REITs. This means while costs are low, you will need to create an investment fund to get started.