Trade Something Other Than Cash
A smart investor should be on the lookout for property owners who are looking to dispose of their property. Such owners could be motivated by the sheer need to let go of their property and not because they are in immediate need of money. One can approach these owners for a discussion to determine what they are interested in and make an offer. The offer could be a rare vintage car, jewelry, or antique paintings. These kinds of transactions could be rare but, they still occur from time to time. One can also offer services in exchange for ownership of the property.
The cost of purchasing rental property is quite high especially when the location of the property is considered prime. This cost may be out of reach for individuals; however, partnerships can bring down the cost. By partnering with one or more investors, the individual amount that one person has to put down is significantly lower than the amount he would have to fork out if he was alone. These partnerships can be limited by guarantee or shares, although the later is a hybrid company. Limited liability by shares is a safer option since the property of the individual partners would not be touched in case creditors claim compensation.
Although this method of acquiring property is not very common, it is still a good option for those who do not have enough capital to purchase a property. Buyers agree to rent a home for a specified period of time. At the expiry of this time, the renters have the option of buying the property. A major advantage of lease agreements is that they give buyers time to work on saving enough capital so that they can buy the property at a later date. After purchasing and subsequently owning the property, buyers can now rent it out to other people and earn an income. If you want to try this method, I’ll suggest you rent a room yourself and then rent it further to those are looking for bed space in Dubai, this way you will get an Idea about renting in Dubai.
Get a Seller to Transfer Their Mortgage Plan
A mortgage is an arrangement where property such as housing is charged to a creditor such as a bank as security for a loan borrowed by the investor. An assumable mortgage is a kind of mortgage where a buyer can assume the conditions of the mortgage agreement. The buyer becomes the new subject who services the loan in place of the original debtor. It is much cheaper to assume an existing mortgage compared to signing for a new one. A major reason is that down payments have been made and negotiations with the original mortgage owner are likely to result in a cheaper loan.
Use Private Money
Your funds may be tied up in long-term investments, therefore, cash may not be readily available to you. In this case, one can avoid the expensive bank loans and source for cash from fellow investors, friends or relatives. Persons that are close to you are likely to give you some capital for a small rental business. The cash pool becomes larger when one is able to syndicate these borrowings by expanding the list of friends who can lend money. Most of the funds borrowed this way have little or no interest rates and there is no paperwork involved, just gentleman’s agreement.