You must have heard people repeatedly saying that you should be loaded with cash in order to take real estate as your business. It is now an outdated idea, as it is very possible and a viable option to make big money in real estate with no money in the beginning. All you need is a clever mind, a patient heart and some creative strategies to get you up and moving.
Got interpersonal skills?
Before you get started with clever strategies, you must remember one very important skill, which is persuading skill. It is very important in this business since you need to persuade the seller to give you the property, convince buyer that the said property is the best for them and make the bank or other financiers sure of your credibility. If you are not sure that you can not persuade people well, don’t worry as this skill is only some practice away.
Look for a Business Partner
After you are sure of your interpersonal skills, persuade a trustworthy person, who has experience in this business to be your partner. A partner is not mandatory, but if you do have a partner, he can facilitate your work. It is advisable that you look for a person who has the right kind of money and the right motivation to invest in the real estate market. And in the return of his investment, you can offer him big profit share. It is essential that your partner possesses two traits which are immensely important for any healthy relationship: integrity and honesty. You should be able to get along with him otherwise you will face problems with him in future. Also, upon finding an appropriate partner, unanimously draw, and execute a legal agreement before getting started with the business. If you see anything fishy about your partner, better work alone.
After you have gotten good communication skills and have chosen a trustworthy partner, follow these strategies to work into huge profits.
Double escrow or buy and sell simultaneously
Double escrow means buying and selling certain property at about the same time. It is sometimes also referred to as simultaneous buying and selling. In double escrow, you first persuade a motivated seller to sell his property at a discounted price. Then, you should have a buyer ready to purchase that property. The difference in the selling and buying price becomes your profit. You might be thinking that for this I need to have enough money to buy a property first. Well, a very important trick lies in the time frame of the payment. You can give a small amount to the seller first and ask time for the remaining payment. In that time you sell the property to a buyer at higher price. This way you pay the seller his remaining amount and make profit at the same time. The idea is not as simple as it seems and for this you need to be very prudent and efficient. For making this transaction run smoothly, it is important that you align your buyer before making a deal to purchase the property from the seller.
Ask for seller financing
When you are purchasing a property, look for people who are providing seller financing options. Usually, property owners do that. Such people, or property owners in many cases, are in no urgent need of cash but want to dispose off their property. You can set a mode of payment with your financier, like you can choose to pay the amount in installments. As soon as the property is sold, the mount can be used to pay back your financier. Here also, the difference in both the amounts becomes your profit.
Look for a good property
All the strategies require a good property, so it is very important that you keep a keen eye around. The best way to look for a good property with a motivated seller is to look around in your neighborhood. You can also check the classified section in the newspaper and internet, but on-ground inspection of the location works the best. Also, it is important that you surround yourself with others who are in this business as a saying says that birds of same feather fly together. It works well because those people have already their hands deep into this business and there is very strong possibility that you will get to know some lucrative venues to get started.
These are some of the ways which will get you started. Once you start working, you would be able to devise you own strategies as well. It is important to bear in mind that being a novice, you might find it disheartening in the beginning, but you will get experience with time. So, don’t lose hope with initial failures, with your hard work and perseverance, you will gain profit and will become successful.