Starting a real estate business with little or no capital – Andrew Cravenho
Real estate is one of the safest investments in the world. It has always been and still hasn’t changed from that perspective. If you have been interested to know how to be a real estate manager, you should most definitely have many answers by now. However, the reverse is the case when you are curious about knowing how to start a real estate business with little or no initial capital at hand. Many are stocked at this point because they lack the needed knowledge of how to go about it. Without further ado, here are some ways to start a real estate business with little or no starting capital from Andrew Cravenho. The founder and CEO of Fresna Capital LLC, a real estate investment company that currently invests in commercial real estate and is always interested in finding more properties to purchase.
Wholesaling is a secure way of starting a real estate business and yet not the easiest, even though it requires a low amount of money to start. This method is the act of linking the seller and buyer together, of which you will sell for a higher amount to make a good profit. As simple as it may sound, it requires a lot of networking and marketing strategy to see to the succession of the deal as a result of which it is difficult for newbies investors. Hence, the need for experienced and professional investors to it. Challenges might be inevitable when this is carried out in an unfamiliar environment.
Private Loans are another means of operating a real estate business with little or no starting capital. On the upside, you don’t have to be qualified for mortgages from banks to invest in real estate. Instead, you can get a loan from friends, corporate bodies, and private investors. That is all that private loans are all about. Of course, you have to give them a reason to invest in your rented properties. This information is highly needed, especially in the case of private investors. High interest and short duration are one of the most effective ways to entice these parties to make the loan obtainable from them.
Another effective method of starting a real estate business with little or no capital is Partnership. Why start something alone when you can do it better with a partner? Working with partners is key to an opening stream of opportunities in real estate. Its algorithm is simple. Mr. A wants to partner with Mr. B. Mr. B is an entertainer and therefore knows quite many celebrities in that line. Mr. A, who is a real estate businessman, decided to partner with Mr. B, thereby using his social influences to reach out to the celebrities in that aspect. The good news is, the stream doesn’t stop there. The network will continue connecting, and in turn, the business keeps growing. Working with partners can inform of crowdfunding, a type of passive investment in which investors agree to invest in a property collectively.
With all these been said, note that each method has its pros and cons. Try to maximize the advantages, and you simultaneously minimize the disadvantages. While you can invest with little money, always consider saving money and establishing credit before going into real estate investing.