| Most people do not venture into real estate investing because they think they must invest a lot of their own money into it.
Others think it is too risky.
This article walks you through how to make money in real estate investing with little or no money, and sometimes not buying any houses at all.
The good thing is that in most cases, you will have your money within 30 days or less, typically $3000 to as much as $20,000 or more per deal.
Flipping houses, or wholesale real estate, is the best way to get started investing in real estate.
You learn how to estimate house value, repairs, make offers that get accepted and still leave you with a profit and get you familiar with the paperwork and the house buying and selling process.
The process of flipping houses involves locating cheap houses then selling them to other real estate investors. The investors rehab the houses and sell them or hold them as rentals.
So how does it work?
1) Locate houses for sale
There will be no For Sale Sign outside the house. Most are never listed in the MLS.
You will see them when driving around. Typically you will get 5 to 10 potential properties in an hour in a good neighborhood.
They have over-grown grass or weeds, look untidy, and overflowing mailbox.
Check the county records to find the owner. Send direct mail asking to buy the houses.
Leave a post card on the door for them in case they come back.
Sometimes though the owners may have tried to sell in vain. Expired listings can therefore be attractive. Make sure the recording date is at least 10 years old. This may indicate they have equity.
Home owners in legal trouble are motivated sellers. These could be people going through divorce, bankruptcy, facing liens, etc.
Probates, or people with inherited property are probably the best motivated sellers.
Once you talk to the owners, find out how much they want for the house, repair estimate, mortgage balance and its fair market value.
By rough, you do not need to get a contractor to estimate the repairs - an over-estimated guess is good enough.
Chances are you will get at least sixty cents on the dollar minus repairs or less.
2) Sell quickly
Once you have put it under contract, send it out to real estate investors in your local market.
Advertise online and classified ads in local papers.
You must have a good real estate investor website to list it on - including pictures, repairs, comparable sales, video virtual tours, etc. You must provide as much details as possible to sell fast.
Your real estate investor website must also build a buyer list for you - buyers for your future deals.
A good real estate investor website is suggested at the foot of this email.
Assign the contract to the buyer if you stand to make $5000 or less. You will walk away with an assignment fee. Do a simultaneous closing if you stand to make more than $5000
This way, the buyer never knows how much you make in the deal and feel cheated.
So you make money with no risk and capital input of as little as $100.
By working a few hours a week, you can do 3 to 5 deals like these in a month.
Simon Macharia is a real estate investor in Dallas Texas mainly wholesaling houses. He flips his houses quickly through his buyers list built through his real estate investor website from http://www.RealEstateInvestorsWebsites.net |
