Do you need money to make money in real estate?
The short answer is no. Traditionally, real estate business requires a large amount of money to buy a piece of property, but it’s not the case anymore if you know the techniques.
If you knock doors of a traditional bank to get a loan in order to buy property, you will find the process is time consuming and complicated. Banks require deposits, good credit history and documents. To avoid all the red tape, there are several techniques you can use to find a property that doesn’t need a large deposit. You just need to get a temporary registration, and then sell it for a profit.
“Buy and trade properties without paying any deposits, the safest and most rewarding way to invest in property” – Iain Stewart | You Don’t Need Money to Make Money in Property | Rightmove Overseas
Techniques for making money in real estate
To make money from the real estate business without investing a great amount of money, the first thing you need to do is look for buyers that fit your criteria. Next thing you would want to do is, find cheap property, hand it over to your buyer and keep the profit. The steps are given below.
- Find a buyer
- Find a property for cheap
- Get the property registered in your name
- Close the deal and get paid
Now, let’s look into each step in a little more detail:
1. Find a buyer
The home buyer must be able to pay cash or be able to transfer the property in their name very quickly. There are many types of buyers and sellers in the market who are looking for cheap houses to buy. Property owners are also looking for cash buyers to sell their house quickly. The different types of home buyers could be:
- Buyers who are looking for cheap house to live in
- Retailers who will buy cheap homes and sell for a profit
- Real-estate agents who are in the real-estate business
To find home buyers, first you will have to come up with cheap, attractive and quick advertisement ideas. Your advertisements could be displayed anywhere, from corner of the street as bandit signs to free ad boards on websites. Using Craigslist could be an easy way to advertise without spending money. Even using some of the social media platforms you already use could attract some buyers.
If you are looking for home buyers, your ad could say “Looking for home buyers, cash only. Contact for details ” and then your phone number, and your company name if you are operating as an entity.
When someone calls, tell them you have several options, and ask for details. Carefully note their preferences. Ask specific questions about budget, choices, and location preferences. After that, ask for an appointment. In the meantime, look for homes that meets their requirements. You can use a Realtor’s list or bank list for that, so contact a Realtor in your area to find information.
2. Find property for cheap
You may be able to buy homes without credit. You just need enough to put down an escrow deposit to put the title under your name. When looking for homes to buy, put up signs like “We buy homes, in any condition, will pay top cash” – and then your phone number. You will soon start receiving phone calls from people trying to sell their property.
It’s possible to pick up repossessed or distressed properties at up to 30% off market price. However, make sure that you do plenty of research and learn about the property before you proceed. Homes can sell for cheap when sellers are in distress, such as a divorce, death of a family member or bank repossession. Make sure you take advantage of these distressed homes. Again, before you buy a property, do your research well. Ask around, investigate and check MLS reports to find out how long a property has been listed.
3. Get the property registered in your name
Once you get a cheap property, get it registered in your name temporarily with a title company. Try to do it without making a large deposit. Your cost could be less than a couple of thousand dollars. Try to find a Realtor or hire a real-estate lawyer who does double closings with no money down. Your buyer pays closing costs. In this system, you will register the property in your name for a month, while you close your deal with a cash buyer.
3. Close the deal and get paid
By now, you should already have at least ten buyers in your list form your ad campaigns. Call them up and ask them if they are ready to look at the property which you have already registered in your name.
You will have to get temporary titles to all the homes you are trying to sell. With a temporary title to the property, you will have 30 days to review and finalize the deal. If you cannot close the deal in 30 days, go back to the original homeowner and cancel the title, and get a refund. So, try to get temporary titles to several houses. It would increase your chances of making a sale.
Learn about real estate investment
Just like any business, you need to minimize your costs and maximize your profits when buying and selling property. It’s important that you learn about real estate business in as much detail as possible before you enter it.
To learn about real estate, you could:
- Work at a real-estate office and learn from a Realtor
- Enroll in real estate courses
- Learn from online resources
These are some simple ways to make money in the real estate business if you are absolutely new to the industry. The rest will come from experience. To learn more about real estate courses, contact us at Institute of Ecolonomics or give us a call at 303-495-3705 Hope you will enjoy your new ventures. It would also be great if you visit and like our Facebook page. Good Luck!
Source: Institute of Ecolonomics
Related articles and resources:
- Buying Homes with Bad Credit Or No Down Payment | Nourish The Planet
- Yes, You Can Compete With All-Cash Buyers—Here’s How – Real Estate News and Advice – realtor.com
- How to Buy a Cheap Foreclosed Home
- Cheap Houses for Sale: 8 Creative Ways to Find Them
- House auctions: buying repossessed properties – MSE
- What Is A Double Closing? A Real Estate Wholesaling How To
- How to Find MLS Home Listings and Do MLS Searches
