While there are so many avenues where investors can keep their money multiplying, the real estate sector is arguably one of the best.

The sector has a steady cash flow, and anyone looking to invest in either commercial real estate or residential will find the business lucrative.

The amount of money an investor gets in returns, however, depends on the location of the property. This means people owning properties in cities receive higher incomes compared to those in rural areas.

Unlike other investments whose returns are affected by market performance, real estate returns are less prone to market fluctuations.  The sector provides a stable and consistent return as the value increase over time.

Reuben Kimani: How to own a house with a monthly salary of Sh30,000

Another beauty about the real estate sector is that Market value increases over time, and so does the value of a property. If an investor plans to sell their property, they could do so at a higher price than the buying price.

Many Kenyans, however, associate the real estate sector with the rich, but experts say anyone can own a property as long as they have information.

Reuben Kimani, the Chief Executive Officer (CEO) of Username Investment, shared some simple ways in which a little income earner can start investing in the real estate sector.

Partnerships

Kimani says that equity partnerships are one of the methods that have worked well for people who intend to invest in a property but find the price tag out of range.

An equity partner is an individual whom you bring into a transaction to help finance a property.

“Basically, property investments are capital intensive. If the property is worth Sh200,000, but you don’t have that money, what you need to do is to partner with people who are of like mind. When you share the cost, that burden becomes easier,’’ said Kimani.

Microloans

Microloans normally target start-ups or newer businesses, which require resources to generate further growth. They are much smaller than what traditional financial institutions offer.

According to Kimani, These loans are a good funding option to invest in the real estate sector with little or no money.

Where to get big money in real estate 

“There are so many loans you can explore depending on how you make money. For those employed, a mortgage is one of the best options, but ensure you get it at a single digit. With a mortgage, you can be able to buy that house, then the rent is able to pay the installments per month and still make money,’’

“For those in small businesses, you can accumulate assets, so use them to acquire unsecured loans. If you are in Saccos, you can get a loan at a cheap interest rate. Take advantage of those interest rates because the properties appreciate way faster than the interest you’ve paid for that loan,” he added.

House Flipping

House flipping is whereby an investor purchases a shabby house, refurbishes it, and sells it at a profit.

While purchasing and fixing property can be challenging for anyone with no money, they can do so by acquiring loans and using the property they are flipping as collateral.