Real Estate Investing (REI) has always been a viewed as a long-term business. People know that real estate properties take years to appreciate. That is why there are only few investors venturing into real estate. You can’t blame other investors if they go after quick-profit businesses. Financial stability today, amid harsher times, is everybody’s concern. Smarter ones, however, know that they can actually earn quick money by investing in real estate.
There are methods of REI that can give you profits in just days, and others in just months. You won’t have to wait for years just to get money from real estate. Among the most popular forms of short-term real estate investing is wholesaling houses. This is basically placing a property under contract and then finding buyer for that property. You will then assign that contract to another wholesaler or a home owner for a fee. The assignment fee can vary depending on the location of the property and other factors.
Here’s a sample transaction. You found a distressed property for $55,000. You pay a few hundred dollars to the owner of the house to place his property under contract. You will then search for a buyer for that house. It will help if you have a buyer’s list, or a list of buyers who are ready to buy properties. Send details of the property to qualified buyers and wait for a response. Don’t forget to change the price of the property before sending the details. If you want to earn $10,000 for assigning the contract, then advertise the property at $65,000. Upon finding a buyer, let your title company take care of matters for you while you can worry about cashing and spending your check.
Another investment method you can use is rehabbing houses. Also know as fix and flip, you will repair properties in this business. It starts by buying a cheap property. (By the way, you can contact a wholesaler in your area of you need properties to rehab.) Rehabbers will then make repairs and improvements on the property before quickly selling it to home owners.
REI through rehabbing requires more capital but the returns are bigger. Most rehabbers seek financing from banks and other lenders because of the huge capital needed. There are a lot of sources of financing today so you won’t have to worry about funding your projects.