3 ways to start owning a home without a lot of money
Even if you are strapped for funds, you can still enter the property. Here’s how.
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July 14, 2021
5 minutes to read
Opinions expressed by Contractor the contributors are theirs.
I bought my first property when I was 17. I didn’t have a lot of money; what I had were the skills to make money! The real estate industry, and business in general, is not about how much money you have. Rather, it’s about how much knowledge you have. This is why virtually anyone can get into real estate and start earning a reasonable income from a real estate business with the proper training. It’s really about knowing exactly what to do and how to do it.
With the right knowledge and skills, you can employ strategies to get started in real estate, no matter how much capital you have.
Of course, there will always be money needed: you will need money to buy gasoline to get to where the real estate transactions are, phone credit to call real estate agents, and inevitably you will have need a small amount of money for the daily expenses of the business. But you really don’t need the hundreds of thousands of dollars that a lot of people think you have to get started.
Related: 3 Ways To Earn Passive Income With Other People’s Property
Here are three ways to get started in the real estate business with little or no money.
1. Co-deal sourcing
Deal sourcing is where you find properties for investors for a fee. Co-deal sourcing is where you work with a fully compliant deal sourcer to find deals they can pass on to investors. Although it takes money to be fully compliant as a chord source, as a chord source you don’t have to worry about it because you are just finding chords and passing them on. to a chord provider who is already properly regulated. .
The key here is to find the right kind of deals that investors are looking for. In many cases, these will be “Buy, Refurbish, Refinance, Rent” (BRRR) or “Rent to Rent” offers. You should start attending investor meetings and networking events to talk to investors and get a feel for what they are looking for. Once you’ve done that, you should start visiting real estate agents and reviewing properties to assess if they would do a good deal for investors. If you are sure that you have found trades that will be of interest to investors, you should start contacting fully regulated trading sources and offer to forward your trades in exchange for a share of the fees.
Related: 5 Habits That Made Me A Millionaire At 25
2. Joint ventures
Another way to get started in real estate with little money is to start doing joint ventures. A joint venture is where you find a partner who is either willing to put in the time to find and manage properties or who has the money to invest in them. In your case, you will be looking for people who are willing to invest the money to invest in real estate while you have the time and knowledge to find and maintain those properties.
This will require that you acquire the knowledge to know exactly what offers investors are looking for and how to find them. When you are starting out, you probably want to claim a very small percentage of the profits, just to get your first business off the ground. Remember that when you are starting out, a testimonial and some experience is much more valuable to you than getting the best deal in terms of percentages.
3. Rent to rent
This strategy requires a little more capital. At a minimum, you will normally need a deposit to post and a few months’ rent (but you can negotiate agreements without a deposit and a period of free rent in some cases). You will also need to set up a limited company. Renting to rent involves entering into an agreement with the current owner that you take care of the property and its maintenance, then rent it out, either by the room or as a short-term rental (via platforms such as Airbnb).
You will also need to make sure that you have the right kind of contracts and that you fully understand the local market. You will need to put a “termination clause” in the contract so that if the property does not work, you can let it go without losing too much money.
While these strategies can be used with very little money, they require a fair amount of education and knowledge. Before embarking on any of these strategies, you should educate yourself – whether through books, courses or mentoring. So learn, but then be sure to take action!
Related: 3 lies they tell you in school that hurt you in business