HOW TO INVEST IN REAL ESTATE WITH ZERO MONEY

It has always been fear-provoking when you hear people quote the amount they used in constructing a simple 2 bedroom house. Sometimes it sound like these figures have been exaggerated and blown out of proportion until you visit tonaton or lamudi before you will appreciate the truth. Seeing all these create the impression that real estate is a no go area for the poor and make it feel impossible to invest in real estate without money. Although real estate by all standards is a capital intensive venture, it shouldn’t be a stumbling block to your real estate dreams.  After networking with some investors in the industry I came to discover that you can start an investment in real estate with a little or no money at all. Sharing this simple tips with you is what I am about to do in the paragraphs below.

You many have come across several real estate articles and blogs on how you can invest in real estate with no money. Most of them talk about using money which directly does not belong to them; monies which will be paid later. They talk about strategies such as house flipping, private money lenders, borrowing from the Association of local real estate investors, relying on family and friends, hard money lenders, lease-to-purchase option among many others. One way or the other all these strategies involves using monies which you must account for in the near future. With these strategies you need to be a guru in real estate; that is having a strong educational background in real estate investment and finance as well as years of experience in the property market. You may not succeed if you tread this path. The strategy I am about to share with you in this post is absolutely investing in real estate with zero money.

1.       Be a field worker

This is a caution to everyone who wants to invest in real estate. Real estate is a highly risky business and I wouldn’t advice anyone to invest into any business which you are totally ignorant about. This may sound contrary to my introductory paragraph. No! Because I want you to start investing with zero and never lose any penny in future, you need to be cautioned. Get involved in any real estate activity around you to get started. Real estate is broad and involves so many players such as valuers, agents, brokers, mortgage underwriters, architects and many more. Connect with this people and learn. This will help you acquire knowledge even if you don’t make money at the initial stages. Don’t forget it’s an investment and most investments do not yield returns during the initial stages. However, smart ones might make small money at this stage. You have never invested or borrowed money from anywhere or anybody yet; rather you acquire knowledge which can make you a billionaire in no time.

 

2.       Attract a partner with high returns

This strategy involves using money which doesn’t come from your pocket which does not require a pay back even if things do not go as planned. With this strategy you have to be the orchestrator of an investment plan which will serve as your part of the contribution in the team. You must therefore find somebody who can back the plan financially to bring it to life. Joint Venture is common in real estate. Get a good investment plan and you will discover the numerous investors sitting and waiting patiently to invest in higher returns businesses. Again you have not borrowed which may become a debt to you later. You are rather going to make money from your ideas and plan.

 

3.       Try the referral business  

Every real estate brokerage firm wants to sell and make more money; hence they all have a referral policy.  This policy is to reward individuals who recommend the firm to prospective buyers and end up closing a deal with the company. Developers selling at $1.5 million pay a commission of not less than 2.5% to an agent who brings clients to buy a property. The commission may go up as the sales value drops (this will be made clearer in the contract agreement). The agent also pays 15% as referral fees to individuals who introduced the client to his / her agency. Since developers only work with registered agency you have to find a registered brokerage firm and try to help them market some of their listings on your own to people in your locality. Make sure you sign a referral agreement form with the agency before you introduce your customer to them. You may be 15% richer on the sales amount when the deal closes. Once again no money spent. You only introduced a client to a brokerage firm.