How to make money in real estate with little or no capital
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How to make money in real estate with little or no capital
| Date Added: November 01, 2010 04:17:10 PM |
| Author: shakir@resellerservers.net |
| Category: Real estate & Construction |
| Most people are scared of real estate investing because they think they must put a lot of money as capital. Others think there is too much risk. This article explains how to invest in real estate with little or no money. Sometimes you will not have to buy 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 wholesaling houses is the easiest way to start real estate investing. You get familiar in real estate transactions - paperwork, estimating market value and repairs, making good offers, and closing. You will locate houses below market value then flip them to rehabbers, usually other real estate investors. These real estate investors are usually rehabbers who buy houses, fix them and sell them or keep them as rental cash flow properties. So how does it work? 1) Locate houses for sale These houses do not have a for sale sign in the front yard. Most of these houses will never be listed in the MLS. You will find them simply driving around. In a good neighborhood, you can identify 5 to 10 potential houses within an hour. The yards will be over-grown, they will look untidy or abandoned, or the mailbox over-flowing with un-collected mail. Get the owner's contact from the county records. Send them letters or postcards asking to buy these houses. Leave a post card on the door for them in case they come back. Some might have tried to sell unsuccessfully. This makes expired listings quite attractive. Make sure the recording date is at least 10 years old. This may indicate they have equity. People in legal trouble quickly become 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 after-repaired 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 When you get it under contract, send it out to rehabbers in your area. Run classified ads in local papers and online like Craigslist. You will need a good real estate investor website to list it along with pictures, repair estimates, comparable sales, video virtual tours, etc. The more details you provide to potential buyers, the faster you will sell it. Your real estate investor website must also build a buyer list for you - buyers for your future deals. Check the foot of this article for a good website. If your profit margin is less than $5000, simply assign your contract to the new buyer. You will walk away with an assignment fee. Do a simultaneous closing if you stand to make more than $5000 The buyer will not know your profit margin, and ask for a better deal if they think you are making too much. When all is said and done, you will walk away with money from this transaction having spent little to no money, maybe only $100 for earnest money. You can do 3 to 5 deals like these in a month working few hours a week. 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 |
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