Many people make a lot of money in the real estate industry. You may be wondering how you can get your fair share. Would-be real estate moguls want to get involved in real estate but do not have the money or the credit. There are still opportunities available for those who have the desire and motivation. You do not need to have a pile of cash to make money in real estate. What you need is knowledge, desire, and persistence. When you have those three ingredients, then you always want to strive to be an informed real estate investor. Here are five ways to make money in real estate with little or no money:
- Assignment of contract – Other investors or would be homeowners are looking for good deals. When you have a good deal, your phone will ring off the hook. The better the deal, the more of a demand there will be. Learn how to locate, and qualify a good deal. Learn what other investors are looking for. By assigning just one good deal, you can make as much as $2,000, $5,000, 10,000, or more. And if you can do this once, you can do it again and again.
- Option to buy – You can find a great deal on a property, and submit an option to buy. This is done to tie up the property. In the meantime, you can line up another investor to assign the contract to, find a partner, or get your financing in place. An option basically ties up a property and buys you time. Keep in mind, you will need option money, the amount depends on your offer to the seller.
- Bird dog – You can find the good deals, and refer them to another investor and receive a fee. The fee is between you and the investor, but can range from $200 – $1,000 depending on the property. If you can find 1-2 deals a week and make about $500 for each referral, you will soon look forward to being called bird dog.
- Lease option – How would you like to make money controlling property without owning it? You can lease a property with the option to purchase. In the meantime, you would lease this property to someone else. By the time you are ready to exercise your option, the value has gone up and you would then sell at a profit. You would need option money to offer the seller, the amount depending on what you and the seller agree to.
- Real estate agent – You can make money as a real estate agent, but there is work involved. You would have access to the multiple listing service, and as your knowledge and experience increases, you could save up for when you find that fantastic deal that you just have to buy.
And there you have it. There are other ways, but remember, the most important thing is knowledge. If you have money and no knowledge, you may lose your money. If you have knowledge and no money, you will still be able to make money in real estate as we have seen. Remember to always be an informed real estate investor.