Usually, if you are a novice entrepreneur, you have to start your own business from scratch. If these are your first steps in starting a business, you can try your hand at real estate business, because this market is considered quite simple and very promising.
We have selected some interesting ideas of how to start a real estate business with no money!
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1. What is real estate business
Real estate business involves buying and/or selling properties.
There are various ways to get profit in this business; you can become an investor, work as a real estate agent, as a broker, as a wholesaler, you can manage real estate properties, or lend money to buyers and sellers.
2. How to start a real estate business: choosing a business direction
The main ways to start a real estate business with little money are:
• get a profit as a lessor;
• become a professional real estate agent;
• make money on sublease.
2.1. How to start a realtor business
You work as an agent that regulates the commercial relations and deals between the owner of the house/apartment and the person who wants to buy it, or to rent it.
In fact, you will be engaged in the sale and rental of private and commercial real estate in your city. This is the best way of how to start a real estate business with little money.
To do this, you will need to conclude an agreement with both parties. You will get the percentage specified in the agreement.
Almost all the newcomers start it this way, and very often they start with getting a job in a real estate company, where they gain all the necessary experience and skills to sell or rent objects, communicate with clients and probe the business as a whole.
As soon as you earn enough money, you can grow your business and then, you will ask yourself: what to do to start my own estate agency?
Here are some tips for you to follow:
2.2. How to start a successful real estate business with sublease
To start working in this business direction, you have to rent a spacious room, make some renovations, divide it into offices and re-rent it. The amount of money you will need depends on the size of the object, its owners, current prices in the region, funds invested in the renovations, etc.
There are several ways to start your own business:
Make a partnership with building owners.
- Pros: the owner of the building will not be able to break the contract in court. You can save on security and other services, shifting this responsibility to the partner.
- There is one con: your partner gets a part of the profits and has the right to influence on the choice of customers.
Make an agreement on a possible future sublease:
- Pros: the owner of the building has the minimal influence on the company’s affairs, and there’s no need to share your profits with him.
- Cons: you have to provide and control security and other services (electricity, plumbing, etc.). Depending on the form of the contract and the management of the property, the owner has the opportunity to cancel the transaction in court.
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2.3. How to make money in real estate by renting a property
Starting a real estate business with no money is hard. But if you own an apartment, you can lease it: This type of business doesn’t require a huge investment as well.
In order to lease a house/apartment, you have to do the following:
• Find the suitable tenants.
• Sign a lease. If an apartment is rented for a period of up to three years, then such an agreement can be made in simple written form. If the rent is planned for a longer period, the agreement has to be certified by the notary. In both cases, it is legal.
• Get a security deposit. A special point is the conditions for the return of the security deposit. These conditions can be prescribed in a separate receipt, you can add an additional item in the lease agreement.
• Get the money and give the keys to the apartment.
Daily rent requires that all the necessary things would be present in the apartment. As for the long-term lease it is not necessary to provide the bed linen, bathroom towels, shampoos and so on.
Of course, the apartment should have all the necessary furniture and appliances for a comfortable stay. Before moving in, the tenants have to check the operation of the refrigerator, air conditioner, washing machine, boiler.
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