Up front cash flow is one of the roadblocks that average investors experience when gathering funds to make a real estate purchase. While some people use their own cash, it is now common to use federally available funds that are offered as grants for real estate investors in the U.S. A person who does not have enough funds to purchase a rental home could benefit from knowing about these grant resources.
What are Government Grants?
For someone new to the topic, a government grant is money that has been approved by congress for distribution to qualified applicants. Grants are commonly available for non-profit entities to help secure funding for community-based projects or development of urban neighborhoods. Grant money is made available each time a budget is passed by congress to generate opportunities for individuals who need financial assistance.
Applying for Grant Money
Just like all government actions, strict requirements must be followed in order to be successful at be awarded grants. The process of applying cannot begin until the appropriate grant and subsequent foundation has been evaluated and selected. Different parts of the federal government oversee the distribution of federal funds to men and women who apply. All grants for real estate investors must be applied for through an application that is provided on the official grants website.
Which Grant Website to Use
The grants.gov website is the official search portal to find available programs that are offered each year. While this website is the main portal, it could be helpful to an investor in real estate to use the benefits.gov website first. This will help determine if someone is eligible or ineligible for select programs that are made available annually. A person who seeks a federally-backed loan can use the govloans.gov portal to explore financing options.
Using Grant Money to Buy Real Estate
All qualified properties that can be purchased using federal funds will be provided in the guidelines after a grant is dispersed. Someone who receives money can then decide whether or not to build or to rehab a home that can be used for passive income purposes. Due to the strict enforcement of grant funds, some forms of real estate will be excluded for adult investors.
Sunshine State Investment Property Guide
Investors who have money to invest in rental real estate can learn the process pioneered at the JWB Group to build double-digit returns each year. A free of charge guide is available directly on this page that highlights the procedures in place that grow investor income. The PDF guide is easy to read on any computer, smartphone or tablet PC.