Interested in Real Estate but have a low risk tolerance?
Or no money?
We'll look at some unique options today.
We have low investment even no investment niches in the Real Estate industry with reduced
risk.
Stay tuned until the very end Ill show you a very unique way to get started in real Estate
with zero money and potentially create a 6 figure income.
First off lets look at REIT's.
REIT's have been very strong this year some producing over 20% returns.
REIT stands for Real Estate Investment Trust and the neat thing about REIT's is they allow
you to buy shares in commercial real estate portfolios that generate income.
So you can literally be, technically, part owner of a pool of apartment buildings, shopping
malls, hotels, self storage facilities, even farmland and others.
So while most investors don't have the money to buy a shopping mall, and maybe dont want
the hassle of managing the property, you can buy shares within a portfolio of commercial
properties in a REIT.
The easiest way to buy them is through a broker, just like a stock, pool your money with other
investors and share in the revenue generated by these buildings.
Another advantage of a REIT is they typically hold a diverse number of properties which
can spread the risk rather then being tied up in a single property.
You can invest in Equity REITS, the most popular, and these entities buy, own and manage income
producing properties and revenue is generated mostly through rents.
There are also Mortgage REITS and Hybrids, we wont cover those here.
If you are new to REITS the safest bet is to buy Equity type that are publicly traded
and registered with the SEC.
These type are quite liquid easy to buy and sell, unlike commercial property itself that
can be slow to liquidate.
A decent REIT can provide slow but steady dividends and can eliminate some, but not
all, risk associated with Real Estate Investing.
REITS so far this year produced a return higher than the S&P, and some sectors have performed
better then others such as certain land REITS at over 31%
Homevestors.
We did a video on ths franchise last week.
I'm sure you all have seen the "We Buy Ugly Houses" advertising everywhere as Homevestors
spends around 50 million dollars a year.
But what many people don't know is that Homevestors is a franchise.
They have over 1000 franchise owners in 144 markets across the USA.
So investors can buy a franchise under the Homevestors umbrella, receive complete training
on the processes, benefit from industry connections, access to capital and 100% financing of deals,
and most importantly, benefit from the massive influx of leads their advertising generates.
Owning a franchise allows you to flip properties, or fix them up and rent them out, depending
on the owners preference.
Now many people suggest they can get into real estate on their own, and you can, but
Homevestors will ensure you know how to valuate, how to rehab, where to find houses, mistakes
to avoid, selling the house and more.
Most owners will tell you they typically lost more money making mistakes than the Homevestors
franchise fee.
So Homevestors is a way to get into Real Estate, but with the support of a major national brand
and their training system.
Franchise fee for Homevestors is $30,000 plus you'll need some working capital that amount
will range depending on what city you are in.
A smaller city your all-in investment will be as low as $60K, for big cities like LA
or New York probably closer to $250k.
I'll put a link to learn about Homevestors at the end of the video but hang tight we
have more good stuff coming up.
Starting a Property management business - So with a property management business you can
benefit from the boom in real estate, but with none of the risk.
So you are actually managing properties, and potentially selling these properties, but
not actually owning properties.
Owning a portfolio of managed doors is actually a salable asset just like owning real estate.
You also make recurring revenue from managing the properties and overseeing repairs and
maintenance.
We have property management franchises starting at about $40,000 that can help build your
business.
There are some that specialize in managing vacation properties like AirBnB, others that
focus on commercial and residential.
The drawback here while you are taking no risk in the markets, you also don't directly
benefit from capital appreciation, so if house prices go down you are safe, but if they go
up you also dont benefit.
Now one way to reduce risk and still benefit from capital appreciation is Fractional real
estate.
This is more of a fun potentially lucrative way to invest in some really cool Real Estate.
We have been involved with a number of fractional real estate projects over the years.So this
concept actually started with business jets where several buyers would all go in on a
jet and each would have certain days or months to use the jet on a rotational basis.
With fractional real estate you are typically buying an equity position into a property
that you would not be able to afford on your own, or just dont need 12 months a year access.
So you could create this scenario with 12 friends where you all put down $120k and buy
this mansion in Costa Rica, that is actually for sale now through Sotheby's.
Each buyer would get 1 month access to the house which you could either rent out and
keep the revenue, use it for an amazing vacation each year, or a combination of both, rent
for 2 weeks and stay for 2 weeks.
Now because managing these properties can be a pain investors often rely on the expertise
of a company that specializes in identifying and managing these types of properties.
You can invest in fractionals all over the world from condo hotels, to mansions and resorts.
Fractionals are different than timeshares in that you actually own the property and
therefore benefit from any capital appreciation that happens.
Not that there are not bad fractional deals, there are, you have to look for the good ones.
A project we are currently involved in is the Wyndham Halcyon in a gorgeous region of
France, guaranteed returns for 20 years.
Fractional ownership starts as low as $16k euros, or just under $18k US dollars.
Full ownership is available from around $180k euros.
I'll place a link in the description for anyone interested in owning property at the Wyndham
Halcyon.
And we will wrap up with a business for anyone who is just starting out, has little to no
money but has the burning desire to enter the real estate market.
This is actually how we got started over 20 years ago.
You have heard of affiliate marketing but what most people don't think of is you can
market anything online.
Why think small promoting trinkets or ebooks on Amazon or Ebay, when you could promote
high ticket items like jets, yachts and yes, Real Estate.
So you can actually promote luxury properties and developments around the world as an agent
or affiliate.
Back in the day while everyone else was promoting ebooks and diet pills, we started building
relationships with developers around the world to promote their properties.
This is the same process as promoting anything else online, you create a web page, you market
the web-page through social media and online, and drive traffic.
You then send the inquiries to the company.
At any given point in time there are hundreds of people all over the world interested in
learning about potentially profitable developments and seeking nice places to vacation.
So just like promoting anything else online you post ads, generate interest and send the
prospective buyer to the company.
This is the same as promoting ebay and Amazon products except you are potentially generating
thousands of dollars instead of few dollars.
Now there are certain laws that require a Realtor to submit referrals, but certain developments
can work with independent agents without a license.
Referral agents typically receive 4-10% of the selling price, just like a real estate
agent and you can promote projects all over the world right from your phone.
When you first start you have to prove yourself and are likely begin at 4%, which is still
$8,000 on a $200,000 deal.
But remember this, it is the same amount of work to promote a $20 item on Amazon, as it
is to promote a 5 million dollar property.
Why think small.
If you are interested in learning more about property management franchises click here
- details on Homevestors here, and I will place a link in the description box to learn
more about the Wyndham halcyon project.
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