How to make money in Real Estate for Beginners ?
Real Estate is the biggest sector in the world to make money. Believe it or not,9 out of 10 world top 10 richest people make there 75% – 90% money from real estate sector.
One of the greatest examples is Mr. Donald Trump (US President). Yes, Mr. Donald Trump is a real estate business and he takes over this family real estate business in 1971. His profile was of a developer.
Also one of the small example is myself (Arun Rathi), before blogger, I am a full time real estate agent, I can say that: Real estate can assure you a wealthy and successful life. Yes, it might take some time, but when you start understanding the terms, trends and methods there is NO looking back.
How to make money in Real Estate ?
You can make money in Real estate using different methods. Few of them require investment and some of them are FREE.
Let us start and I promise I will try to keep it very simple as much as I can:
How to make money in Real Estate with NO Money ?
First, you need to contact a real estate agent in your area. Try to get a place in his/her office.
It will give you an opportunity to know the current deals available in your zone.
FREE ways to make money in Real Estate
Post the available deal’s details with property images on different real estate classified websites with your contact number.
1st: Earn Brokerage Commission
So, in future if any buyer contact you to visit the site and you were able to crack the deal, then you become eligible for brokerage commission, which is almost equal to 2% – 5% of total trade value or property value.
2nd: Earn Rental Commission
If you help out a person lease a property that being an agent you will receive a 15 days commission from both ends. Example: If you lease a property for $1000 per month than your commission will be $500 – $500 from each party.
How to make money in Real Estate Investing ?
1st: Become a Real Estate Developer
You can start your career as a real estate developer. Definitely, it will require funding. Fund size depends on your project size. For beginners, it is recommended to start with small projects like buy and developing a small area and then sell it.
If you have more money to invest and develop a new project than you can rent out the previously developed project and start your recurring income from rent.
2nd: Lease property with Buy option
This is not too famous methods among real estate agents, however, it is always a profitable way. Major by the time you apply this method to Commercial property.
It simply means that you can run a business and if you find it profitable, then you can buy it any time for decided value.
Example: You leased a hotel for $100000 per annum and decided it buy Value at $1,000,000. So while running a business, you get an offer for $1,250,000 to buy it. That means you are getting a profit of $250,000. JACKPOT… Pot it.