Real-estate is a strange business. You can get a license for $200, you can sign on with a firm for $500, and a pack of business cards is all you need to build a huge business. There is tremendous upside to real-estate, but I’m going to break down how much it costs to stay in real-estate.
- Start-up costs
$200 (Education/Course Costs)
$500 (Sign up fee to sign on with a firm)
$700 (Buy a nice suit, business cards, etc.)
~$1,400 Start-up costs
2. Variable Expenses
$300 MLS Fee
$300 Brokerage Fee
$500 Business Expenses
$1,100 Business Expenses
3. Personal Expenses
This will vary greatly, but keep your personal expenses AS LOW AS POSSIBLE. KEYPOINT: You can’t control your business expenses, but you can control crazy spending.
Phone Bill: $100
Car Payment: $250
$1000 Personal Expenses
You need enough money to live off of for 6 months, so $2,200 = $13,000
Many people don’t just have $13,000 laying around so what do you do if you’re broke?
You will have to go out and drum up money like an entrepreneur/investor!
- Hit up your family members
The best source of funding for any deal is private money. Many times family members can be excellent sources of low interest loans.
2. Take out a HELOC
If you own a house you can use what’s called a HELOC
3. Credit cards
This is a viable option, but the interest rates are huge.
4. Business Loans
These loans very greatly, but the loan rate will be astronomical if you haven’t been in the business for more then 5 years.