invest-in-real-estate

How To Invest In Real Estate With Little Or No Money?

Real Estate

Invest in real estate

We have been in the market of real estate development, construction, and marketing for a long time. In our career, we have come across many individuals who show up with the same question in their minds that how can they start investing in real estate while there is nothing or very little in their hands. See, as every other person thinks that investing is a term that is directly involved with putting your capital into something and getting profit deals over it, but in our opinion, this thing is a little different for the real estate industry. So if you have such questions as to how can I invest in real estate having little or no money in hand, this post is for you.

Keeping in view the growing demand of this query we have finally decided to pen down 5 proper ways that you can follow too to invest in real estate while having zero or very little money. You can also make a very good and profitable career by following these methods, and here is how.

House hacking

The first method that you can start at any time for investing in real estate while you don’t have enough money is through house hacking. This is one of the methods that are being widely used these days keeping in view the recent population explosion and urbanization. In urban areas where the land is already scarce and the residents are growing every other day in search of vertical or upward mobility, this method works the best.

You just have to part your home in portions, one should be where you will stay and the other one is to rent. In this way, you can easily create an additional passive income stream and get yourself into the real estate market.

Crowdfunding

Next is the ancient and most popular method of investing in the real estate market and that is crowdfunding. Although you cannot enter into the field with zero capital in hand, you can enter with a little cash that you have. This process works like in the metro cities where there is a greater population and lesser no. of vacant spaces for them to reside in, larger business entities announce such projects where they motivate the investor community to bring in their capital in form of little investment, and they draw good chunk at the end of the business cycle.

This method is a proven one that is there for a long time now. That’s why most of the individuals who want to begin their endeavors in the market start from here. Another benefit that this method gives over the other ones is that when you are sharing the profits. The losses will also be shared, and in times of negative cash flow. The loss is also shared or distributed between all the members. In this way, the shared chunk for each member will be quite lower. And one person won’t have to suffer all the loss on their back alone.

Airbnb

Airbnb is a growing marketplace that connects lenders with tenants, and lately. It has also become the most popular one in the market. People who use to travel frequently and want their kitchen and storerooms to book their stays with Airbnb. You can find several different properties listed on their website from various categories, and you can choose from them. They have shared accommodation options, apartments, service apartments, and duplex or triplex.

On Airbnb, you can list your properties or a part of it from where you can generate a passive income stream. This method can be used as a part-time business. You can also use it as a full-time business on permanent terms.

Become an estate agent

The next on our list is becoming an estate agent. In this business, you won’t have to pay a single penny from your side. All you put in is effort, get experienced, and keep growing. The effort is the key to this business. In such kind of business, you endeavor to find real estate properties that are up for sale; on the other hand, you have to look for potential investors or individuals who want to purchase a property in that particular area.

You can enter the business always with zero capital in hand. While you can get a lot while working on it. You just have to establish a platform where buyers meet sellers. And get a chunk of profit from every closed sale. The rate of profit varies from area to area or depending upon the property type. Say for example in the rich cultural city of Lahore, Zaitoon City, Lahore earns you a great portion as they have quite nice commission rates. You just don’t have to worry much about any losses as the sales missed won’t lead you to negative cash flow rather you stay on the breakeven always.

Become a bird dog

Last but not least is becoming a bird dog. As the name suggests this business works as the bird dog does. It sniffs for any bird hidden in the bush. You just have to keep a look for any property that is on sale and bring your clients into it.

This business is different from formal agents because you always keep a list of active investors with you. You have to look for the property and once you find it, you will show it to the investors. The rest is on the investor and the buyer.

End-note

If you are looking to start your business and looking to invest in the real estate industry with zero or lesser capital in hand. We have compiled a list of 5 effective and proven methods that can answer your questions. The real estate industry is one of the most growing ones and the business is also considerably lucrative. That’s a reason why everyone tends towards it and puts their capital into one of the safest markets.

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