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. thanks for watching please like and subscribe