There are a lot of people who made it big in real estate investing. Many of them in fact started out with nothing and just decided to earn money with one bold move. While there may be a few raised eyebrows with this statement, it is really true that anyone can earn profits without actually buying a property. You can make money with nothing down through effective leasing strategies and the right techniques.

Venturing into the real estate business for first timers can be absolutely scary as one always has the notion that a lot of risks are involved. With good leasing strategies however, you can still enter real estate investing without the need to make a big investment. Here’s one example:

You enter a lease agreement for 5 years with an option to renew for 2 additional 5 year periods. Suppose you lease the property for $80,000 per year and then find another tenant to rent it out for $100,000. You’ll earn a spread of $20,000 every year which is awesome. You’re actually able to earn money that’s enough to give you decent income each year with zero payment made.

You may think that it all sounds so simple and untrue. The truth is that, many real estate investors actually do this. A good lease is a very effective way to make money with nothing down and then gain equity and capital for the next real estate venture. Leasing and sub leasing are very common in the United States and have been done by many successful real estate investors.

Most investors try to negotiate a fixed lease agreement for a certain period of time. These investors then craft a sub lease contract that allows them to increase rental fees after; say, a two-year period. The excess money earned from the increased rental income can then be used for repair and maintenance expenses and many other unavoidable fees that may come up.

The leasing investment formula is basically to lease a property at a low price and then sublease this same property at a much higher cost. Calculate the costs that you need to make. These costs include taxes and probable repairs so you can come up with a reasonable rental fee for your tenant. Gross profits should be enough to cover your basic fees and then the rest is yours to keep.

What’s great about leasing a property is that you don’t actually own it. This brings forth reduced taxes as the rental income you get falls under the passive activity rental rules. Taxes can be sheltered by real estate losses and many other expenses while sub leasing the property. You get a fair share of profits with very little money down the drain.

If this can be done, then everyone would probably want to be the primary lessee and pay less rather than be the sub lessee and pay more. While this may be true, there are people who just need to rent out a house for a short period of time; thus, making them ineligible for fixed term leases. You offering convenience and a decent living space are also other ways to entice people to sub lease from you. Finding a nice house to live in isn’t easy and you are there to answer this need.

Some say it’s like shooting the moon but it really is possible to make money with nothing down. All it takes is a single step and the will to succeed. So set the sails and conquer your fears. Make a fortune in real estate investing without actually buying a house.

Most people spend their time wondering when the real estate market is good to enter and purchase real estate based on some friend’s recommendations. Others are more emotional and buy real estate on their whim and fancy. Such ideas may work sometimes but are not very reliable indicators on when to enter and exit the real estate market. Thus this article highlights a 2 step process to analyze your real estate investments.

Firstly, in real estate investing, just like in the stock market, there is readily available public data, which you can chart to determine if the real estate boom or bust is bottoming out. Like in any investment, try to purchase the instrument at the bottom of a cycle so that you gain on the rebound. Similarly take the rental yield cycle into consideration when you do your maths to determine whether the property is worth acquiring since you want to ensure that you have enough monthly rental to cover your mortgage installments even in the leanest of rental periods.

The best way to analyze this real estate investment analysis is to look at charts and data with regards to the relevant data. You want to look and examine in which part of the real estate cycle, your prospective real estate property lies in and how the rentals are doing in your potential real estate investment. Thus after this analysis, you will know where the pricing of your real estate investment is heading and plan accordingly.

Secondly, after analyzing statistical data, go down to a real estate agents office and talk to them and ask them about their outlook for the real estate investment sector that you are interested in investing in and ask them for indicators of good rental yield in terms of location and whether any events or developments would help to increase rental yields in an area. If for instance they know that a new business district is slated for development next to your prospective purchase, you want to know that too as it would mean a huge jump in price of acquisition and rental yields and a huge gain in your real estate investment.

Always spend some time planning what information you want to get out of the real estate agent before you go down and always know what type of real estate investment property so that you can save his and your time when you view properties. After a while you will get a rough sense of the property prices in an area and when you see a bargain property investment you will know it’s the right one for you.

In conclusion, we have highlighted two ways to identify a bargain from your real estate investment in this article. Spend some time this week looking at your next real estate investment deal and perhaps it might turn out to be a bargain.