7 Non-Capital Transaction Strategies for Property Investors

For those of you who are still unfamiliar with the property business, you seem to feel that there is no strategy for investing in property without having the least capital. However, for those of you who already have enough experience, you certainly have started to have a little picture but can not assemble it into one clear picture form.

Through the following rubrics will be presented 7 strategies you can do in transacting property business without capital.



# 1 Raise Rates, Lower Payment Terms

If you have found a hot deal property (the selling price is below market price and already gives positive cash flow), but your funding is not ready, this strategy can be run. For example, the market price for a house with the same size and type around the property is around $450.000, but the price offered to you is only $300.000. This first strategy you can do by bidding the price of the house to $320.000
Surely the home seller will be a little surprised and at the same time happy with your offer because usually buyers will bid cheaper but you bid on the opposite. After giving a slightly higher price than the offered price, you can continue your negotiations to lower the payment terms to the minimum possible.

If the seller requests a down payment of 20%, you can ask him to drop to 5% or even without down payment. Or if the seller asks for a $4000 marker, you may ask to lower it or even make it completely zero.

If the seller requests a payment of one month after the down payment, ask for repayment in three months or more (Remember, disbursement from the bank usually takes the fastest one month). Negotiate to the requirements to be as light as possible according to your ability.



# 2 Borrow From Seller

This second strategy, you can own property by combining funding from sellers with funding from banks. Sometimes funding from banks is not enough to cover all the needs of takeover property assets. For example, you only get funding from the bank of 80%, but there are still other needs that must be met, such as down payment, administrative costs and so forth. Therefore, this second strategy could be the solution.

The meaning of this "borrow" is not directly borrowing but rather negotiating payment for a shortfall of 20% can be repaid in stages alias installments. Tell honestly to the seller that in order to buy his property, some of the funds you earn from the bank and your own money is not enough to cover the shortfall. This is why you need to know the motivation of the seller early on. If the seller's motivation is clear, you'll find it easier to set up a transaction financing scheme.



# 3 Use Rental Prepaid Lease

It is strongly recommended that your investment assets should be a leased property. For example, shophouses are rented for the next 5 years by a bank, a long-rented apartment or a residential house that has been rented for many years to come. Rental property that has been paid in advance that you can make as a reduction in the purchase price or as a down payment.

One example of the implementation of this strategy was once the experience of a property businessman in Bali. He purchased a villa in Maldives for $1,5 Million in which the payment of funds he could be from the rent for 5 years ($250.000 per year) paid in advance amounted to $1, 25 Million, from bank loans of $175.000 and from the commission purchase of $75.000  that he requested from the seller as a reduction in the selling price. He sees this opportunity because the tenants themselves are willing to extend the lease for 5 years under consideration that as long as the rental price does not rise and even get a free rental bonus for 6 months.

# 4 Use Additional Collateral

This strategy is sometimes necessary if all the strategies without capital you have tried, but nothing works. Though the assets that you will buy very good. This is the last strategy you can use. A condition, you have another property certificate that has not been guaranteed.



# 5 Take advantage of Unsecured Loans 

This bank product you can use because the process is relatively faster than other credits. A number of funds that you will earn can reach $200.000 and sometimes more, depending on your condition.

In addition, the interest offered is also relatively low. However, you still have to calculate carefully and creatively so that you can combine this Unsecured Loan with other funding to help finance you.

# 6 Take advantage of Credit Cards

For you property investors, credit cards will be very helpful even if only to meet the initial needs such as down payment or other costs and not to close all transactions. You can get a loan without interest by utilizing a grace period of 45 days before maturity.

However, you still have to be careful because credit cards can indeed entrap you if you are not wise in using it, especially if for consumptive purposes. However, if you use it for a short time and immediately pay it off before it's due, credit cards are very profitable.



# 7 Earn More Funds from the Bank

You can use more funds than banks to finance property investment. There are a number of ways to run this strategy. However, in principle, you need to be observant in finding properties that are priced below market prices and even below the price of liquidation. Meanwhile, banks disburse credits always based on the market price they earn from their appraisal. The difference between the transaction price and the loan disbursed by the bank is called more funds or cash back.