STARTING A REAL ESTATE BUSINESS WITH NO MONEY

I get asked a lot how one can start a real estate business without money. By without money I mean zero money, completely zero. You're not getting a loan, you don't need to save money, you have zero money. How can one start a real estate business without money? Is it even possible? That is what we are going to tackle today. First of all, as you're starting a real estate business you can't just jump in without experience. By experience I don't mean you must have worked in real estate for some time. Remember you're starting a real estate business and you don't have money completely. Now, one, you can befriend someone who is already in the real estate industry. Or you can get a job, get employment, maybe part-time with a real estate company that is already doing real estate. Just get a bit of experience and understand how the real estate operations work. But then you cannot start a real estate business by someone telling you how it's done. You have to jump in there. You get like a bird is thrown to fly. You have to jump in there and learn how it's done. You don't need so much of experience like maybe me who has been in real estate for some time. Do just a bit of research, just a bit of research to get you started, to get you flying. So how then can one start a real estate business without money? Now, number one, you can become a broker. By broker I mean you can sell houses to people or get people to rent houses. And each one of these comes with very good commission. For example, if you get someone to rent a house, a vacant unit, a landlord wants a tenant and you get for them the tenant, you're entitled to 10% of the total rent that client pays. For example, if let's say the tenant pays four months of rent, that is, let me say, each month he's paying one million. So he pays four million. Of course, one million of the four months will remain for security. So the other three months, that is the three million. You have to take 10% of that three million, which is a lot of money. I think it's about 300,000. Some houses you'll get higher amounts. Maybe a house is being rented out for two million per month or 2.5 or 1.5 each and every payment. A deposit is always for four months. And three of those months, you get 10% of that commission, which is good money. Imagine you get 300,000 times four in a week. That means you've gotten four clients paying the same amount. Let's say hypothetically, that is a lot of money for just one week. And you've started, that is a business you're starting without any money. You're starting it with zero money completely. Become a broker. The other brokerage you can do is to sell for people houses. There are so many condo companies these days. By condos, I mean condominium property developers. So many. And they look for people to sell their houses. And being a broker that sells houses, you don't get this small money, 300 and all that. You get a buyer who is buying a house in maybe 500 million. You get quite a huge percentage. You can get 100 million from that cut. You can get 5 million from just one sale. You can get 3 million from just one sale. So by doing that, getting buyers for developers or for people who are selling their houses, you get huge cut on commission. So basically, you're starting a real estate business without money. You're becoming a realtor. Property management, you don't need money to become a property manager. Of course, with time, when you've grown, you can register a company and make it official. And you need, of course, money to rent out an office and hire staff and all that. But as you're beginning, becoming a property manager, you don't need money at all. You just need yourself, your knowledge, and your commitment. Commitment is very important. Like every other job, property management is also quite challenging. And if you're not having the commitment, you'll give up along the way. Property management is another area that can assist you start a real estate business without money at all. And someone may ask, how do I start a property management business? I don't know anything about property management. Well, you can start by researching. There's a lot of information on the internet, on YouTube. Like on this page, I do many real estate content. You can research about it. There is information everywhere. Start by researching. Then when you have your knowledge, when you have your information, now get someone, befriend someone who is in the business. Like for example, me, I do property management. Talk to me. I'll give you some of the tips on how property management is done. And there is also a book I launched that talks so much about property management. That is the condominium real estate Uganda group. You can find it in a restock, Uganda bookshop, buy a copy, read it. It will give you a bit of information of what you need to become a property manager or information on what to expect as you do property management. Of course, some people may say starting real estate business without money involves getting loans. Loans means you're getting money anyway. It's money. But although it can help you get it, start a good real estate business. Yeah, you can start a real estate business by getting a loan. Although it's not part of the topic I'm handling today, but you can help you a lot in case you have the capacity to get a loan and start a real estate business. There's no problem with that. Another area in real estate that people have created quite successful businesses from is the Airbnb. And in this case, what happens is people list their furnished apartments to be booked on the Airbnb website and used as hotels. Most people prefer such arrangements because it's so homely compared to the hotels. And also it's a bit cheaper than the hotels. So in Uganda, mainly people charge per day from $50 to $70 or $100. And what happens is you go to the Airbnb website and you list your property to be booked and used as a hotel for short or long stay. For example, in this photo here, you can see I was trying to list a property and I told them I'm in Nakasongola and they were trying to tell me if I'm listing a property in Nakasongola, I might be one of the few people to have Airbnb in the area. So basically you list your property on the website and people can look at it and book it for short and long stay. Basically, your house or apartment becomes a hotel. And I have a friend who is in this business and he's renting, it's not his house, it's not his apartment, but he's renting from a landlord. And he pays every month, 1 million to the landlord and he furnished the apartment like how you see in these photos, how this house is furnished. He furnished the apartment and listed it on Airbnb and it charges about $70 to $85 per day. So what he has to do is make sure that house, that apartment is occupied, is booked every day of the year. Or even if he misses some days, he can count it as a loss, but it is not such a big loss because he earns quite a lot, $70 to $85 per day. And maybe he has over 80% of the days in the year booked. So he is earning quite a lot from this business. His aim is just to make sure he tries as much as possible to make sure that the house is booked year in year out. And he's doing quite well for himself. He's earning a lot of money from this business. It's quite a good business. So imagine he has a client paying $70 per night. And throughout the year, he gets a booking. Let's say that is $70 per night is 70, let's say 70 times 3,700, which is 259. Now, if it is 259, and let's say throughout the year, he has occupancy in that house, that is 259,000 times 365. Let's see what that is 365. That is $94,535,000. So let's maybe consider that he spends about $20,000,000 to manage this property for a year. Okay, let's increase it to $40,000,000. Let's minus $40,000,000 from this $94,000,000. That is $94,000,000 minus $40,000,000. Let's say he uses $40,000,000 in expenses in that year. That means it's $54,000,000. Let's say he uses throughout the year, let's say he uses $12,000,000 on rent. Let's say the unit is $11,000,000. So minus $12,000,000. And here I'm assuming on a high amount, yeah? Of course, this can be lower. Let's say for a year, he spends $12,000,000 on rent. That means he's remaining minus all expenses, he's net amount to just spend on whatever he wants is $42,535,000. That is a lot of money. All he has to ensure, of course, I'm basing on he has the unit occupied throughout the year. That is a lot of money. Yeah? $42,000,000 to nothing. That is quite a lot of money. Of course, he's putting in some money to earn money. But it's a real estate business that is starting. So that is one of the ways that you can also start a real estate business much as you need a bit of money. Content creation. Now this is one area where people have created huge real estate businesses just by doing content creation and they are earning big from it in dollars moreover. So what normally happens is one just needs to gain a huge following. If your content is good, of course you will gain a following very fast. Basically what you need is a phone or a camera. I use a phone of course and a ring light and a microphone. Yeah. So you create your content. You need to just research, um, um, what people want to hear, what people want to listen to something that people can gain, um, from your content and then record it and put it there or, or some kind of writing and put it on, on social media. Social media has helped so many people become rich and create, um, huge businesses. You just need to have enough knowledge on what you're talking about in that real estate niche that you're using to create, um, content on and people are earning quite a lot from content creation. So I would advise if you're interested in, um, starting a real estate business and you're good at the social media thing, of course, me, I'm just starting and I'm trying to create, um, a following, but I know with time, with persistence and, uh, consistency, I'll be able to gain the following that I need. And on that note, if you haven't yet subscribed to my channel, please do so so that we can grow this page and, um, allow real estate content to go out there so that people can acquire knowledge on real estate and what to do, um, and earn from real estate as a new or a raw sector in Uganda that has so much potential that can, um, earn Ugandans a lot of money. So content creation is one of those areas where you can start, um, in the real estate section and earn quite a lot from it. And you're starting it without money at all. Yeah. Maybe, maybe you'll need maybe just, um, a few shillings to buy a few dollars to buy maybe the phone or a camera or the ring light, but mainly you basically can start content creation with just only a phone. You just need the determination, the knowledge, the confidence, nothing comes easy. Content creation is quite, um, not that easy because it needs a lot of, um, patience. Uh, you take time doing content and no one really likes, uh, or gives you a like or watches it. You may have a few people watching it, but don't lose hope. Don't lose, um, hope in what you're doing as long as you love it, as long as, um, you have the determination to, to help it, to help your pages grow, whether it's on Instagram or, or on YouTube or on, any of those social media pages, continue doing it. It's one day, bro, and earn you a lot of money.