HOW TO MAKE MONEY WITHOUT HAVING TO HAVE YOUR OWN MONEY?

Dec.15, 2009 in Investment Knowledge

The title above maybe is an often question you heard or read on some blog publishing or newspaper. What I want to present right now of course related to property investment and real estate investing.

One of the newsletters I got from Tim Taylor I learn something about How to make money without having to have your own money in real estate investment field. I will give you a situation sketch to understand this easier.

Assuming you found a property, let’s say it is a house in a condition need of much repairs here and there, and the owner ask for around $40,000. You have to count in your mind that the amount of repair cost will cost you around $ 40,000 then the property or the house would be worthy to sell at $ 120,000. It means that you need $80,000 before you could sell the house for $ 120,000 and will give you profit $ 40,000. It is a big money to start the business. All right now you should understand every aspect of the building or the property so you could make a bargain for the final price. You need to learn specifically about negotiation before succeeding this area.

Ok now let’s say you get control the situation and final price become $ 25,000. You have to get $ 65,000 ahead for the property hold in your hand. Make agreement with owner for terms of payment.

After you need to find good investor to lend you money in a short period of time (because you have to sell the house quickly) with some interest in win-win solution. Once again this is a negotiation technique. Like you could take guarantee to make it 115% after 3 months of lending maybe it is a good point.

If you succeed, while you are working on the house repairs now list your buyers candidate. It is good to present the property or the house when it is finished. When the time is ready to show the property it is easier to drive the buyer candidate to take decision and making deal. Assume you succeed to sell the house $ 115,000 after solid negotiation. You made profit $ 40,250 after paying for the investor and interest.

So there is always ways to make good earning although you don’t have enough money. First Make a better negotiation between property seller, investor and property buyer, then Find and make quickly your buyer list by advertising or social life in a certain community. So good and attractive communication become base of this work.

Good luck. If you have any idea or do not agree with me, please go ahead to fill the comments area. Also thank you to Tim Taylor for your newsletter brighten my mind about property investment.