The real estate business is often quite lucrative. If you’re running it out of fast-growing locations, you could earn a lot of returns on your investments. But it’s also typically capital intensive. It’ll take you a lot of money to start up a company that does significant deals on the regular.
Read more about How-To
The good news is, there are ways around the costs required to start up in this industry. You don’t have to spend huge sums to build an enterprise around selling property. All that may be required is your foresight, as well as some smart thinking and quick action.
This article takes you through some ways to begin a real estate business with little or no money.
Help Developers Sell A Property
You act on behalf of a developer, helping them to sell their property to a client you’ve found for them. Depending on what the deal is worth, the commissions you receive could be significant.
The crux of this strategy is finding the right kind of buyers. This can be difficult, especially if you don’t know where to look. A solution could come by way of marketing the land or property to be sold across multiple platforms (online and offline) and interacting with veteran agents who know what the real estate market is like.
Partner With Investors
You can work with an investor who has the funds needed to purchase the property. You may deal with the day-to-day management of the business, while the investor finances the deals you find. When a sale is made, you’ll share the profits with them.
As is the case with other kinds of silent partnerships, you’ll have to negotiate the profit split with the other party before starting. This limits the chances of a disagreement over your remuneration when sales have been made.
Sign up to the Connect Nigeria daily newsletter
Here, you’ll find a property seller who is willing to grant you some rights to the property over a determined time stretch. This means they’re providing you with a loan that you’ll have to pay back over time, with interest.
The good thing about this is that you only need a fraction of the money to lay some claim to the property. Instead of making an outright payment, you’ll pay a fraction of the cost, and spread the remainder over long periods. This may make your entry into the real estate business a bit easier.
Finding land or property sellers who are willing to do this may be tricky. But if you look in the right places (e.g. with people you know or who can trust you), you may secure seller financing.
Seek Funding From Friends And Family
If you don’t have the funds to start a real estate business yet, you may talk to your relatives and friends about your idea. Some of them may be interested in funding your business at is beginning, if they consider you trustworthy.
Do all you can to repay their loan after you’ve earned enough from the enterprise to do so. This will make them even more eager to lend you money if you need their help in the future.
There’s so much money to be made in real estate. It’s easier to reap those returns if you do have funds to startup in the industry. If you don’t, you may follow the tips we’ve presented here. Admittedly, finding lenders, partners, or investors willing to work with you may be tasking; but the gains you’ll make through them will make the effort worth it.
Featured Image Source: The Sun NG
Got a suggestion? Contact us: email@example.com