Strategy 1 – Covered call writing and Naked Put Selling
Presuming you do not already own any stock, you can begin off by doing naked put selling. With this particular strategy, you essentially could possibly get compensated a commission to purchase a regular from someone. With this particular strategy I recommend you begin with a margin account. Note, you may need a the least $2,000 to spread out and keep a margin account. With this particular strategy you are able to conservatively make 10-15% monthly.
Strategy 2 – Call option buying and set option buying
Purchase a call option if you feel a regular will increase. Purchase a put option if you feel a regular will go lower.
With this particular strategy you don’t need a margin account and you may begin with less than $100 if you discover the best stock. With this particular strategy you may make up to 300% per trade!
Strategy 3 – Bird Dogging
This really is also called as being a property scout legitimate estate. Essentially you need to do the lower limb try to find and broker property deals. After you have an agreement signed, (for any cost) you assign it for an investor/buyer that has the funds to shut the offer. For instance, let us say you get a motivated seller (let us call her Anne) which has a property worth $200,000. Because Anne is anxious to market, she’s prepared to sell the home for you for $120,000. You know Anne that you’d like to purchase her property but you simply need two several weeks to generate the money. Anne states this really is fine as she will not require the cash for 2 several weeks anyway. You draft an agreement with Anne stating that she’ll sell the home for you for $120,000 and she or he won’t accept every other offers throughout a two month time period. You may make anything official by putting $100 within an escrow account. Another factor you need to do is place two clauses within the contract. The very first clause will condition that exist from the deal in case your business partner or consultant doesn’t support it. This primary clause provides you with a means out if you’re able to never develop the cash. The 2nd clause claims that anything is assignable. This means that anytime throughout the two several weeks, you are able to assign/provide your legal rights towards the contract to another person. With contract in hands you get a property investor (let us call him up Bill) or someone searching for any house.
You know Bill that you’ve a deal on the property. The home may be worth $200,000 but you’ve got a contract that will help you to obtain the property for $120,000. Bill already includes a potential $80,000 equity and may keep your property or market it immediately for any nice profit. You know Bill you don’t intend to purchase the property however, you can assign anything to him for $5,000. As you have done all of the groundwork and also the property can make around $80,000, this concept could be attractive to Bill and that he provides you with $5,000, will get anything and purchases the home. Which means you made $4,900 with an investment of $100.
Strategy 4 – Tax Lien Investing
With this particular strategy you will get compensated to pay for other’s taxes. If a person falls behind on their own property taxes, you being an investor will pay the home amount of taxes and when the individual will get swept up, you collect what they pay in penalties. In states like Texas, a delinquent person has 6 several weeks to get up to date and when they get up to date they need to pay fines of around 50%. A minimum of 25% of anything they pay goes for you. For instance, if a person had property taxes of $5,000, they would need to pay about $7,500 to get up to date. Should you have had compensated $5,000 for your tax lien, you’d be titled to $1,250 or 25%. Within the worst situation scenario if the average consumer never will get swept up, you’re permitted to confiscate the home.
That’s it, 4 strategies that can be done with little money. To become effective in investing you must have a mix of three things. The 3 situations are understanding, money, and/or time. You don’t need to possess the 3 and you may most likely manage with one should you choose your research.