Real estate investment is one of the forms of business that many people apply because of its high profitability. However, for those with little capital, how can they succeed when entering this field? Let's find out with AHS some real estate investment strategies for people with little capital through this article.
Real estate investment strategy for people with little capital
Buy and sell quickly
With this strategy, you sell the property as soon as you buy it, or you renovate it and then sell it. Similar to renovating an old house, this strategy requires you to buy a property that is worth less than the average market price. Although it helps investors recover their capital quickly, this strategy requires a large amount of equity and sales skills to promote liquidity. If you cannot sell the property quickly, the equity will be "stuck" in the property and cause great damage.
Buy properties for quick sale at cheap prices
This is one of the ways to “hunt” to help you find “good prey” when you have a small amount of capital. People who need to sell real estate urgently to pay off bank loans, transfer jobs, take care of family matters, etc. are willing to sell at a lower price than the market price. But before deciding to buy, you also need to calculate whether it is easy to resell the property. Besides, you need to find out whether the location of the land is in the planning area or has any legal problems. This will help you minimize the problem of losing or burying capital.
Use borrowed capital to invest in real estate
In addition to the above strategies, many young people have now ventured into real estate investment with bank loans. Many people consider this a necessary financial leverage because if invested at the right time with the right capital, it will bring high profits.
Use and rent or rent the whole thing
This is a popular investment strategy where you use part of the property and rent out the rest or rent out the entire property. This strategy is very popular, especially for properties that have a clear division of space, function and utility rental costs. Applicable types include residential, office, retail and logistics. This strategy is widely used for many reasons. Firstly, it provides a passive income source for the homeowner to pay off the mortgage or save up to invest in another property. Secondly, the homeowner can easily raise capital by using the rental property as collateral for the mortgage.
Real estate broker
This is a familiar strategy in which the investor finds a good property, connects and assists in negotiating the transaction between the buyer and seller, and collects a commission or the difference between the seller's desired price and the price the buyer pays. This strategy requires no capital, but requires you to have extremely good marketing and sales skills.
Through the above information, you will know the real estate strategy when investing in a project. Hopefully, AHS's article will share useful knowledge for you.