How to become financially independent? a question of mind of every young entrepreneur. If you will ask me what are 10 ideas to become financially independent? I would answer Clothing, Cosmetics, eCommerce, Education, Food, Medicine, Real Estate, Stocks and Tech. My favorite among all of these are stocks and Real Estate. In this article I am going to explain you 3 ways to become a Real Estate investor with no money. There are several ways to enter into Real Estate business, but usually it requires an handsome investment and a huge public relation network. But I think that public relation is more important than any other thing including investment. It is upto you either you are going through this article further or not but I must say public relation is a key to success in Real Estate business. So, you have to keep in mind that to become a successful Real Estate Investor, you have to be social. It will be good for you if you already have relationships particularly with people of resources either directly or indirectly.
As I told you there are several method that how to start real estate business. But I am going to tell you three basic pathways, through which you can get into Real Estate Business with no money. Smart work, consistency and timing is key requirements of Real Estate Business.
Real Estate Consultant
There are several Real Estate and Marketing groups in the market looking for potential buyers or investors. These agencies are ready to share their profit margin if you can crack a deal for them. You can get property details from them and spread it into your social platforms or directly to your relationships. If someone is interested you can simply hand over him to your partner agency.
Example: ABC Agency is looking for buyer for their property worth $100,000. Their margin is 3% which means they will get $3,000 on sale. You get into this deal and agency offer you 1% of their margin and you will get $1,000 if you can make a deal for them.
Suppose you have a tentative buyer from your family or friend circle. You negotiate with him and agree him on $110,000. Your partner agency has no concern with your deal price. They will charge $90,000 from you and you will get rest of amount. Even if you sale this property in $90,000. They will not object you but you will not get anything from this deal.
Real Estate Whole Selling
If you are well knows, reputable and trust worthy in the market. You can do Real Estate Whole Selling. Plan is very simple, you have to make a deal with a potential seller that you will pay a certain amount for his property for a fixed period and after that you will purchase that property with specific amount. During this period you will sign same contract with your potential buyer but keeping your reasonable margin in monthly rent or full amount you have to pay on property purchase.
Owner A has a building having 20 apartments and he is not happy with ROI and want to sale it. You can sign a deal that you will pay him $1600 per month and will buy his whole building in $125,000 after two years. After signing contract you have find another buyer. Suppose you have found a customer ready to pay $18,000 monthly as rent and he will purchase this property in $150,000. You will make $28,000 in term of rent and additional $25,000 on full purchase.
Leasing Property as Third Party
Sometimes in the market there are investors with no time to seek, purchase or rent out properties. On the other hand there are sellers looking for potential buyers. All what you need to do is that you have to find right property and convince an investor to buy it and you will manage as agent and will charge a minor amount from monthly rent.
Owner A want to sale his property but do not have buyer, Person B have money in the bank but has no time to wonder in the streets to find a suitable property. Suppose the monthly rent of the property is $1000. You have to convince that investor to buy the property and you will manage for him. From monthly rent you can charge $100 or $200.