Many people believe that to enter the world of real estate, you need a lot of money. Well, the availability of money would certainly make entry in the real estate market easier. But it doesn’t mean that a person with less or no money cannot start a real estate business.
You need to work out creative and innovative ways to get financing for your real estate deal, especially when you have no funds to invest.
The real estate sector in Nigeria provides one of the best investment opportunities in the country, especially as it appears the industry is one of the few sectors that was not affected by the COVID-19 pandemic.
The best thing about the property industry is that anyone can start this business with the goal to sell property and earn good returns.
So, how do you start a real estate business with zero capital? How do you arrange finances to back up your real-estate deal?
If these questions are running through your mind, then we’ve got useful answers for you.
Here’re some effective ways to start a property dealing business with zero money in your pocket:
Create a Lead Generation Strategy
If you don’t have any initial capital, but still you want to enter the world of the property market, then becoming a facilitator of leads can be a very good option. You can become a link between the buyer and enthusiastic real estate agents and realtors.
To be successful in this line, you can always start generating leads at a local level. You may also use your contacts to find if anyone in your network, locality is looking forward to either buy, rent or sell a property.
Steps to follow in a lead generation business may be:
- First find clients or agents who are looking for a property and create your database of the interested parties.
- Then search for sellers. This can be done on the internet.
- Once clients are identified, sell your leads. Price per lead will depend on the locality and the quality of the lead.
Be honest with your leads always. And try to generate high-quality leads too.
Partner with a Real Estate Investor
Having a real estate investor as your partner can open gates of new opportunities for your real estate business.
So, if you find an excellent property for investment but you don’t have resources to close that deal. You can find someone ready to invest money and help you in closing that deal.
Many investors want to invest money in real estate, but either don’t have time or they don’t want to handle all the administrative or managerial works related to property. You can become a partner with such an investor and fulfil your dream of running a successful real estate business, while the investors gets a hassle-free opportunity to invest in real estate.
Work on partnership terms with the investor. Such kinds of partnerships are ideal in case of rental or fix and flip property dealings. If you have good managerial and administrative skills, you can start your own real estate business without worrying about finances. Just need to find the right partner, who can take care of the financial requirements of your business.
Sell a Developer’s Property
If you have no money and still looking for opportunities to start your own property estate business, then you may opt for selling property on behalf of developers. New housing and residential projects keep coming up in the market. You have to contact the developers and sign a contract to sell their properties. You can easily search for these developers online.
Using this strategy, you advertise and sell the developer’s properties and earn a commission on each closed deal. The commission or cut varies from project to project and also depends on the type of property sold.
Obviously, commissions earned for selling luxury properties is much higher compared to the budget segment properties, so you might want to target the high-end properties, too.
Close the Deal and Get the Cut
Many realtors don’t want to get into the complication of registration of the property. They act as a middleman between the buyer and the seller. Once the deal is closed, they take their cut and move forward. Registration is the concern of the developer.
Property dealing is a very lucrative business. Use the above-mentioned ways to enter this line of business even if you don’t have money. But, remember that entry is only the first step on the ladder of success. How your business grows and succeeds depends in large part on your ability to identify opportunities and taking action accordingly.