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“Making Money in Real Estate Business without much Investments”
You may have seen advertisements in internet and other print medias, some people promising
you to make profits from real estate business without spending or investing a single penny. They
normally promise you in lakhs in real estate profits without any investments. But the real trust is
that many of these frauds never made a penny in real estate business, but instead build their
future though selling over priced or worthless/useless information to innocent people. First of all
we must understand that, it is not easy to make money in the straight forward real estate business
and also the real estate “broking system” is not foolproof enough to protect your interests.
However, that doesn’t mean that you need have lot of money or surplus of cash to get started in
real estate business. The following are few real estate business strategies for those people who
wish to start real estate business and generate income on a regular basis.
1) Work as property Broker/Dealer
You don’t have to won a property to make money from this, the best way is you can work as real
estate broker. There are two types of real estate brokers – retailers and dealers. Retailers buy
properties outright and sell them for a quick profit. Their risk is highest, but so is their potential
reward and the same time retail brokers retailers typically need large amount of cash for a down
payment or capable of arranging loans as required. In short property Dealer brokers, by contrast,
buy and sell contracts, not the real properties. They find bargain properties and sign property sell
agreements with the owners of the properties. Dealers then sell these agreements or contracts to
retailers, making a solid profit through these transactions without investing much. This process is
known as “assignment of contract. Usually, the only cash required by the dealer broker is the
advance money to be paid to the owner of the property for secures the deal. A good Broker
Dealer can then make a contract for an investment of Rs. 50,000 to Rs. 100, 00.00 without ever
taking possession of the property.
2) Use Third Party Double Closing for more profit in real estate business
A double closing allows a dealer to earn a higher profit margin than an assignment of contract.
With an assignment of contract, there is always potential that the deal will ultimately fall
through. The dealer is protected in this case because he has already received his proceeds from
the sale of the contract, but the retailer who buys the contract from him is cautious of the deal
falling through, and thus, will factor it into the price he is willing to pay. With a double closing,
the dealer assumes more risk, because if the deal falls through, he receives nothing. However,
with this greater risk comes a greater reward. A double closing begins with the dealer signing a
property sell agreement with the property owner. Then the dealer signs an agreement with the
retailer, in which the retailer agrees to buy the property from the dealer at a higher price, and
deposits that amount in some designated bank account. The property owner signs the deed to the
dealer, who then signs it to the retailer. The retailer then signs the loan documents, and the
process is complete – the property owner is paid his asking price, and the dealer is paid the
difference. Note that the dealer came to the table with no money, and his credit was never an
issue.
3) Property Information Providers
In addition to dealers and retailers another category of commission agents are information
providers, they just pass the information to the potential property buyers and earn profit out of it.
These types of agents face even less risk than dealers, and have almost no cash or credit
concerns. They simply gather information about distressed properties and sell it to interested
dealers and retailers. In effect, they do the dirty work for real estate investors, and investors are
willing to pay them handsomely for doing it. Typically these agents will gather the property
owners name, their contact details, expected price, details about any pledge /mortgage,
outstanding liability on the property, pictures of the property, exact property location also he will
collect details of owners motivation to sell the property like money urgently required for
daughter’s marriage, paying off bank loans, just selling for making profit, job transfer etc. The
property investors typically pay these types of agents between Rs. 5,000.00 to Rs. 10,000.00 or
depending up on the value of the property for good and reliable information.
4) Take Over the Property Owners Loan Payments
Another form of property deal is taken over the property owner’s loan payment. If the property
owner is unable to pay his loan amount due to financial difficulties, some people will help them
to pay the loan amount to the financial institutions and subsequently take ownership of the
property.
Real Estate Success Always Requires an Investment
There are ways to profit from real estate without significant financial investment, however, that
is not to say that success comes free and easy. At the very least, you will need to make a
substantial investment in yourself. In order to succeed, you must be willing to work hard. Be sure
to invest in your education on a daily basis, and learn as much as possible about your local
market, real estate law, and investment strategies etc.
BluRain - Luxury Waterfront Villas in Kochi By Tulsi Developers Pvt. Ltd.
Kochi is a place where one can see several trends taking place at a fast pace, especially in the segment
concerning housing. And when it comes to a dwelling along the waterfront, the city is moving in the lap
of luxury. Both apartments and villas on serene water front locations in the close vicinity of the city are in
great demand. And owning one in Kochi, the state’s commercial hub, has turned out to be the latest fad
among the rich and famous in Kerala. Today, the waterfront villas have become so very popular that the
builders are increasingly coming up with more such projects. Today the segment of waterfront villas and
apartments are so popular in the real estate scenario that the builders are increasingly coming up with
projects that carry with it, a tempting waterfront tag. In short, it’s the latest chip on the block. Tulsi
Developers, one among the top Builders in Kerala, now offers luxury waterfront villas in Kochi under
the brand name of BluRain Waterfront Villas.
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