Sometimes you asked yourself is it possible to start a real estate business with zero investment? Maybe your answer was NO, however, you were wrong because you can start this business with zero investment. If you have a great mind of business then, it is possible and easy to start. If you want to start a business in real estate then you need to have disciplined and hard-working knowledge about the planning and strategies of this business.
In the United States of America, there are both new and established real estate, business people. And if you’re thinking of starting a Real Estate Business in such a crowded place with zero investment, it will be a little difficult but not be impossible.
About 700k newly constructed houses were sold in America in 2019. And 20 million active real estate business people live here. Real estate construction contributed $1.15 trillion in 2018, which is 6.2% of the total country GDP. Bryan Provenzano is a real estate realtor who is working with Kellar Williams in Fort Mill South Carolina.
Now, ready to know about the tips of real estate business with zero investment:
- Purchase A Primary Home
You can buy a home with the help of the Veterans Administration (VA) and the United States Department Of Agriculture (USDA) loans. It is a good idea to invest in a house, live there over a year and after, move on from there and make the house rental property.
The credit score of the primary home is low as compared to investing in a house with your money. At first, living in a house made by loan credit is good.
- Build A Home Equity Line Of Credit (HELOC)
After purchasing a primary home, if you have home equity of your primary residence then you will get the benefit from this, you can get 70-80% of cash from HELOC, Imagine you have a house, cost $500 thousand it means this is the home equity of yours means you will get around $400 thousand in which you can invest in real estate property further said Bryan Provenzano, home equity is the market value of any real estate business person. The interest rate of money that is given by HELOC is at least 1-2% and 5% most.
- Take Your Closing Fees
It is a fee that is given by the lenders or those who want to buy the real estate property, it is compulsory to take the closing amount because it includes many things like the fee of an agent, home taxes, and appraisal.
The percentage of the closing fee is 3-6% of the total amount of property, suppose a home seller purchases a mansion of $1 million, then the closing cost will be $60 thousand.
- Buy Another Residence
When you purchase another residence after primary home, then it will be good for you to get money and buy an own house. This plan is very important to survive in the real estate market because you can get cash from the rental property that you buy the first time, and you can live in the second property.
According to Bryan Provenzano, you can easily purchase the second home of yours with a 5% down payment. This will help you to create a successful real estate business.