There are many ways to invest in real estate, even if you do not have money. The options of rent and the rent with option to buy are two very popular strategies. You can create a large amount of cash by packing and hiring other investors for a fee. However, this does not mean that if you do not have money, you can not invest in multi-million-pound projects, such as developments, business conversions or ordinary BTL properties that are worth a lot of money.
There are people who are waiting with their money to invest in their businesses instead of having their money in their bank, where they are unlikely to recover much. Money loses value every day and, after paying taxes, it can compensate or generate losses. That’s why they are looking for new possibilities. Some of these people are rich in cash and have little time, which means they do not have time to find offers. These investors are looking for people like you to find and negotiate agreements so they can finance them and share profits with you. You have to start walking with these people.
Tell them what you are doing and establish relationships with them at networking events, exchange business cards and, after the event, sign up by email to everyone the next day. You can say things like, “Hi, Mr Smith, I was delighted to meet you at yesterday’s real estate networking event and it would be great to meet with you to discuss new business opportunities, please let me know when you are free to meet.”. Or you can say things like “There’s no free lunch, but here’s when I’m in town.” It depends on who you are dealing with. This is just a simple example. If you can write good emails, you can develop it, but try to make it short and to the point. Remember: dress to impress; You can never have a second chance at a first impression. Who you are, who you are and your network is your net worth. If you tell us how much five of your friends make each year, we can predict your salary.
We name some places and products where you can raise money for your real estate investments. Even if you have a lot of money and start investing, someday you will run out of money. That is why it is very important to increase your finances and use other people’s money. All successful people do the same, do not use their own money.
A joint venture (JV)
This is an excellent way to build your real estate portfolio quickly, with minimal risk and no capital requirements. JV members can be people who meet with you at networking events. Some have a lot of time and they will bring you a good business, while others are very busy, but they need to invest a lot of money. If you work with private investors, they have business experience that can help you. This will be very useful to analyze agreements, legal issues, losses and profits, etc. It is much easier and faster to build a real estate business with partners than with yourself. Before concluding a JV agreement, be sure to conduct your due diligence with the person you are dealing with and consult your lawyer. Staying with other people has both positive and negative aspects, so you should analyze them before entering into an agreement of this type.
For a joint venture to work, you must choose the right partners. Each partner must contribute something more to the association. It is important to have clear documents that show how the association works, to know who is responsible for what. You have to be honest and open with others.