It is much easier to get started in the business of real estate investment than generally thought of by most people. Not being aware of the available resources to get the required credit without much hassle they are put off by the huge purchase price. In fact, only a fraction of what is required to cover the full purchase price is to be put in by the purchaser.

Today, numerous financial institutions and banks provide credit for the purchase of real estate for personal use or as an investment option.

To start with, one could buy a house to live in. In a way, all homebuyers are real estate investors and that is a sure shot way to start. Whether one wants to stay in the house for life or only for some time, the fundamental idea is to make money. One could buy a house, live there and sell it when the value appreciates. The sale proceeds should now be used to buy another house costing more than the sale value of the first one. As real estate value invariably appreciates with the efflux of time, the appreciation in the value of the new house would be much higher, giving the investor grand returns. There would, of course, be a mortgage on the new house that would need to be paid off. Inducting tenants in part of the house can split the mortgage payment. This can actually result in their buying the property from the landlord over a period of time. This can be possible by smart planning and can create wealth through a smart investment by owning just one house.

Another way is to buy a house to live in, pay off the mortgage and start saving for the down payment for the buying the next one as an investment option. To cut down on the time needed to save for this down payment, one can get a refinance on the old house and use the equity as down payment for the next house. The new house can then be rented out and the rental income used to make the mortgage repayments. What needs attention here is that there should be adequate financial cushion available to cover the difference, if any, between the rental income and the periodical mortgage repayments. Depending upon the refinance package, many people have been able to purchase more than one investment house from one refinance package.

Alternatively, one can buy a new house, move into it and rent out the old house. Good credit standing most of the time eliminates the need for putting any down payment and one can get the new house as an investment without the requiring any refinancing on the old house. Still another way is to sell the old house after the value has appreciated sufficiently and then to use the sale proceeds as down payments for two houses at the same time. A relatively bigger down payment on the investment house should be made, as compared to the house intended for personal use.

One can also opt to buy a vacation home or a second home from the investment angle and later obtain a refinance on it. The value of a vacation home appreciates quickly and being higher in value, refinancing can easily be obtained for a larger amount that can help purchase new property, which if let out on rent can take care of the mortgage repayment with little or no help from any other source.