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Capital is one of the biggest requirements for real estate. So many people want to get started in real estate investing, but do not have the money to do so.
Sometimes it can seem like a Catch-22 kind of situation. You want to invest in real estate to make money, but you need money to invest in real estate. Many people wonder how they will ever be able to get started in real estate investing if they are unable to come up with the money to do so.
A grant can be the answer for you here.
You may have previously heard that there are grants available for people who want to start their own businesses. Naturally, this leads you to wonder if there are grants for real estate investing.
The simplest answer is that there are grants available for almost anything you want to do. That answer would translate to mean that there are indeed grants for real estate investing. The key to getting grants for real estate investing is first finding these grants.
If you have ever tried to search for grants for real estate investing, you might have noticed that the process is a lot like searching for college scholarships. There are plenty of grants for real estate investing out there, but many of them have very specific requirements. For example, the requirement for a grant might be phrased as something like “Must be a descendant of George Washington living the state of New Mexico.” That example might be a little overboard, but you get the idea.
After looking at the requirements for so many different grants for real estate investing, you might think that there is no hope of ever getting a grant. Of course if you give up, you will never know if you can receive grants for real estate investing. You can’t succeed in getting grants for real estate investing if you don’t first try to get the grants.
As an investor you might be interested in the following grants:
- Restore Real Estate
- Help with Purchase Investment Property
Each grant that you apply for has specific functions and purposes. By searching an online grant directory, you can quickly identify the grant programs that are currently provided funding and see how much you qualify to receive. Each program has different eligibility requirements, and all the details on how to submit an application correctly is provided with your access to the grant database.
- The first step is to review a public database to identify those programs, and then submit your application to see how much you can obtain. The funds that are awarded to approved applicants are provided tax-free, interest-free and with no repayment terms. A good database to browse for grants is Grants.gov. Use the “Search” tool to look for grants by keywords.
- HUD (US Department of Housing and Urban Development) has been promoting quite a few grants this year, in an attempt to promote housing recovery. Click here: HUD Grants for their site.
- Fill out the Grants application very carefully. Do not overlook any required information, since the approval comes down to complete and accurate details.
- Most real estate grants will require a Grant Proposal, which is basically a business plan about what you intend to do with the grant money. Also keep in mind that real estate grants are favored to individuals who plan to help the community or the neighborhood where the property is located, so make sure spell out how you will help the community or neighborhood. That makes for better chances in obtaining the grant.
- Once the application and the proposal have been completed, send them to the appropriate agency so that the package will be received by the deadline date. Some packages can be hand-delivered to the local agency offices (which is preferable) and others will have to be mailed to the appropriate main location.
To obtain grants for real estate investing, you must first know how to write a grant proposal. But don’t be discouraged. This is not a skill that is inherent. While you might be effective at other kinds of writing, grant proposals have their own format. This format must be followed if you want to receive grants for real estate investing. If you are not aware of the format for grant proposals, you can find information on the internet or through purchasing reference material from a bookstore. Alternatively, you can hire someone to write grants for you.
Check out FIVERR.com and do a search on Grant Proposals. You will find all kinds of experienced grant writers to write a grant proposal for you, but be discerning. Check their experience carefully.
To improve the odds at receiving grants for real estate investing, you should apply for every grant you come across. If you think you meet the criteria in even the slightest way, it is worth a try to write the grant proposal.
In the case that you are paying someone to write your grant proposals, chances are you don’t want to spend the money to have more than ten grant proposals written for you. You can pay someone to write a few, and then use those as a guideline for drafting your own after that.
The key to finding grants for real estate investing is persistence. Continue trying until you have exhausted your resources, you may find that it pays off in the end.
Bill Manassero is the founder/top dog at “The Old Dawg’s REI Network,” a blog, newsletter, and podcast for seniors and retirees, that teaches the art of real estate investing. His personal real estate investing goal, which will be chronicled at olddawgsreinetwork.com, is to own/control 1,000 units/doors in the next 6 years. Prior to that, Bill and his family lived in Haiti for 11 years as missionaries serving orphaned, abandoned and at-risk children.
