Real estate investment is now getting popular for increasing turnover. Entrepreneurs usually buy it, waits for increasing market worth before selling it.
Before jumping into it, you should be having down payment in cash. That’s what real estate consultant think of it right?
But now people find easy ways to start it with little or no money. Let’s take an initiative by following up the given strategies and make you a professional investor with little to no money in hand.
- Investment without Down Payment Rule
- Co-Investment Techniques
- Borrowing Money
Investment without Down-payment Rule
In case the investor is short of money and motivated. Then try to catch up without down-payment rule. It comprises of:
- Looking into Seller finance
- Leasing the Property
- Working out a trade
Looking into seller Finance
Analyze the seller behavior, if you sense a motivation, there are huge chances that he will make it easy for you by offering you a loan. Then it’s your responsibility to increase the monthly payment to cut off the down payment.
For such scenarios, make it clear that you should have an attorney write-up agreement. This is the safe way to protect both the parties from fraudulent acts.
Leasing the Property
There is another way out to avoid down-payments. You can money on a lease-agreement unless you have enough budget to buy it. These payments will be given on purchase-price. To go with it make sure the write-up agreement states final property price.
Working out a trade
There is another option left this is to barter you piece of land with the other ones. In these scenarios, better negotiation and communication skills always help.
Another way out is, offer Real-estate labor in an exchange with a down-payment. For bartering deal, you can swap using motor cars, other appliances to negotiate on down-payment.
If any of the above rules are not applicable or suitable for you then try the co-investment strategy. In this scenario find the partner or try to invest with (Building) contractor.
Bringing in a Partner If you are a pro at finding real estate investment strategies but are lacking in money. The best way is trying to manifest your skills in that area, start your strategy and build your partner’s trust. Proven skills show the trustworthiness in any business partnership.
A young entrepreneur Shahid Maqbool invested in same real estate business domain apart from his own business stream. That ended up with huge success and now, he is waiting for his new adventure in real estate business.
His specified user-centric strategy of following up the trend and providing premium services to trustworthy users was spectacular. His aim was to target villas available for rent in Dubai to individuals and families who can afford the luxuries of life while traveling.
At the beginning try to narrow down and emphasize on the specific community to target. This helps you in finding the window of opportunity for new market research and avoiding high competition risks. Gaining experience with such strategic-buildup is the right motive.
According to him if you are working up with your partner, try to sign-up a contract agreement from your partner that clarifies the roles. Try to mention profit sharing policies in that contract to avoid any misunderstandings. Crosscheck everything by yourself to manage your business financials.
Investment with building Contractor
In case you can’t afford the plumbing and carpentry to resell the property. Then it’s the right time to take him into confidence and try to negotiate. Try to engage him with your trust that will help you overcoming high investments.
Borrow Some Money If you don’t want to proceed with down payment option, you can always borrow money from your family. Take a home equity loan or choose a microlender.
Borrow Money from Relatives
While borrowing money your family members or friends should be your first priority. These relations are the safest among all and you don’t need any sort of agreements to sign. In these kinds of scenario, you have to build up the trust once.
So, next time the lenders will give it to you straight-forward without any delays. Be cautious not to harm the relationship with your lender.
There are several banks that offer loan services for down-payments. For that purpose, you have to show up your recent bank details along with signing up the legal agreement. In case you are unable to return it back to the bank.
These may include your own house or any other property that you may own. In such scenarios, there may be chances of losing that property if you are unable to pay the loan. Try to avoid taking such risk.
Microlending Loan Strategies
There are many microlending services given on the internet. These services are also known as peer-peer lending. Such services allow borrowers to take advantage of these loans without getting into much trouble. Peer-Peer loan consists of approximately $35,000. If you couldn’t avail the above three option then try to find these sites that offer you such services.
Some of the popular microlending websites are kiva, club, and prosper.com. research these sites. Be aware of all the rules and regulation you need to follow. After analyzing it then go for it.