According to many financial experts, now is the best time to get into the real estate business. In most cases, joining the property industry requires a big startup capital. Luckily, starting a real estate business with no money is still very much possible! Find out how to make money in real estate with no money right now!
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1. Real estate agency
Investing in real estate with no money may be challenging for a beginner, so if you have no experience in this industry, you can start by opening your own property agency.
With this business, you won’t own any property, which minimizes the risks for you. Instead, your job will be to render real estate services to your customers.
As a real estate agency owner, you will be responsible for finding clients for people who rent out or sell property. Each deal you close will bring you a commission, which will comprise your income.
If you’re wondering how to make money in real estate with no money, the good news is that you can establish a home office, which means your biggest expenses will include internet access, phone, and advertisements.
2. Rental property business
If you have some additional space you don’t need – for example, if you inherited a home or you live in a duplex and the other half of it is unoccupied, here is how to start a rental property business with no money.
First, you need to create a rental property business plan on your own or using professional help. Then you will need to advertise your property and find customers who are willing to pay you money for an access to that property.
Finally, you will need to sign a contract and start receiving a previously discussed amount of money on a regular basis. Keep in mind that in most cases the property owner is responsible for repairs and renovations, and you need to quickly respond to any queries from your customers to keep them happy.
3. Top 3 ways to invest in real estate
If you don’t want to try the previous two ways of getting into the property business and instead want to know how to start a real estate investment business with no money, here are 3 most popular options for you to choose from:
- Get a loan from the bank. If you have a sensible business plan and can prove that you can manage your own property business, a bank will be more likely to loan money to you. You can also negotiate the deal with the seller and ask him to cut the cost of the down payment in exchange for you to effectively manage his property.
- Try borrowing money from family members or friends. The downside of this option is that relationships are often ruined by the irresponsible behaviour of the borrower. In order to keep your relationship to the person as strong as ever, make sure to write an official promissory note with the terms of the repayment and stick to it!
- Find a partner for your business. Investing in real estate with little money is possible when you have not only great ideas, but also a person with a sizeable capital. You can have all kinds of arrangements, but the most common one is when one person is responsible for managing the business, and the other one is responsible for providing the funds. Remember to discuss how your profits will be shared before you even make your first steps in the business!
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