Deal Trader & Tippgeber – You want to earn money with real estate, but you lack the necessary small change to finance it yourself? No problem – deal trading is the solution for you to earn some extra money with real estate knowledge and connections. Deal-Trading simply means a brokerage of real estate. The earning margin is large, because you don’t have to raise much equity yourself. Does that sound convincing to you? Then read on here: Everything you need to know about deal trading with real estate!
Deal trading with real estate: what is it?
Earning money with real estate without investing yourself sounds like a dream. With the job as a deal trader this becomes reality! As a deal trader, you are one of the most sought-after authorities in the real estate industry, as you always have top deals and offers at your disposal. As a nice side effect, you’ll also gain some expertise and gain a foothold in the real estate industry.
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A deal trader brokers real estate to investors without using equity.
What exactly does a deal trader do? Simply put (source: Deal-Trader / immobilien-erfahrung.de): You broker real estate or land to investors who buy the property. You yourself do not need to invest any equity capital, which means that the whole thing is associated with little risk. However, since you are involved in the purchase as an intermediary, you still make a considerable profit.
You are probably wondering now if deal trading is not circulating as another term for brokers. However, there is an essential difference. Here briefly the explanation!
Work on the go.
Deal trader and broker: is there a difference?
Even though you now know what the job of a deal trader entails, many still wonder what exactly the difference is between a deal trader and a real estate agent.
The answer here is simple. The deal trader for real estate, specializes in a niche and additionally brokers properties in which he will participate, for example, if they are resold (often at Fix & Flip).
The real estate agent, on the other hand, is broadly positioned and usually acquires all types of property types in order to pass them on for a pure brokerage fee.
The difference at a glance:
- Deal trader: brokers objects in a niche, in which he gets a share if they are resold
- Real estate agent: mediates all types of real estate for brokerage commission
Advantages and disadvantages of deal trading
You always win as a deal trader as long as you know how the business model works. However, it takes some time to gain enough expertise in this field to work as an indispensable partner of investors. The many advantages and good prospects of this profession, you have probably already read from the previous section. However, every profession has certain disadvantages or challenges that you have to face. Take a look at the advantages and disadvantages of deal trading below.
Advantages of deal trading: High earnings with low stake
Deal trading offers you a great opportunity to enter the world of real estate without much expertise or a specific degree. Since you can do this without any equity, this opportunity is open to any age and earning bracket. Earning without risk – Sounds tempting? We think so too!
Here is a brief overview of the benefits that deal trading brings you!
- You do not need any expertise or degree
- You enter directly into the real estate industry
- You are in high demand in the real estate industry
- You do not need equity capital
- You have no risk despite high profit
All good things come with bad things as well. Let’s look at the disadvantages and challenges that can come your way.
Disadvantages: Problems and challenges
Even though the job of a deal trader seems rosy, every profession has its drawbacks. So, there can also be challenges that you have to face as a deal trader. What are the most common problems or challenges in deal trading?
These are the challenges you have to face:
- You need to acquire enough knowledge
- You must learn to analyze the market and real estate prices
- You need to find business partners
- You need to learn negotiation tactics
- You need to build a network
- You need to know where to find the best deals
It doesn’t matter if it’s a small town or a big city.
With the right contacts to sellers, you can earn good and fast money.
Clients of a deal trader: partner and commission
You are interested in the deal trader job, but you do not know who to address? Who exactly is the target group or the customer of a deal trader for real estate?
You, as a deal trader, need decisive investors who want to buy real estate and have an appropriate credit rating and equity to finance real estate quickly. Let’s take a quick look at who you can broker your real estate to!
The main clients of a deal trader are:
- Real estate investors who prefer to invest rather than research
- Buyers who buy properties, renovate them and then sell them again quickly (Fix ‘n’ Flip)
- Developers (new construction) who are interested in land to build new buildings
- Developers (existing) who want to convert multifamily buildings into condominiums
- Real estate agents who broker exclusive off market properties with commission participation
- Deal trader, you yourself are your client if you can raise the necessary equity capital
After these good prospects, surely many would like to become deal traders. But for whom exactly is the job suitable? Is one target group particularly well suited? First of all, the job is suitable for almost everyone, so read for yourself whether the job Deal Trader is for you or not!
Become a Deal Trader: Part-time or Full-time?
Deal trading is a great way to get started in the real estate industry. You are interested in real estate and would like to sell real estate as your main profession later on? Then the deal trader employment is to get acquainted with the real estate world. But also for the less interested, who wants to earn some extra money on the side, this job is perfect.
The job is for anyone who…
- … has an affinity for real estate
- … would like to expand his real estate knowledge
- … would like to earn money with real estate
- … would like to secure his assets with real estate
- … would like to buy his first property
- … would like to build up real estate holdings
- … would like to get started in the real estate industry
- … would like to learn the real estate trade
- … would like to switch to self-employment
- … would like to build up a 2nd mainstay
- … would like to earn more money on the side
With this risk-free business model, it doesn’t matter if you are a student, retiree, employee, self-employed or entrepreneur. It is suitable for all.
Even if you don’t have much time and stress, deal trading know-how is valuable. With the knowledge, you can quickly train people who perform deal trading for you. In parallel, valuable contacts are generated automatically – through the emerging network!
Source: Deal-Trader / immobilien-erfahrung.de