Many real estate investors think that money will make or break a real estate deal. A lack of funds can stop a potential purchaser from bidding on a property. However, it is possible to purchase real estate with no money from the buyer's pockets. This economy has produced one of the hardest hit foreclosure markets ever. However, to a real estate investor, this means opportunity. In this article, I will explain different strategies used by real estate investors to profit in this market without risking your money or your credit.
Bird Dog
Being a “bird dog” is an excellent approach to use with no experience and no money out of pocket. It is the best way for you to get started in investing, with the least amount of risk. While being a “bird dog” you will be able to learn the aspects in the Real Estate business, while also making money. There are plenty of potential deals out there but most seasoned investors and buyers just do not have the time to put in the work on locating them. A new investor can make easy money by locating deals to refer to other investors for a small referral fee, which would usually be around $500 to $1,000. This part of the Real Estate Investing career field only takes time and consistency. Bird dogs will usually drive around neighborhoods looking for distressed homes. They will then contact the owners about selling the property and then refer them to their investor partners to do the deal. The bird dog will usually receive a referral fee when the transaction closes.
Buy and Flip Wholesale
One strategy that provides immediate cash is to buy and flip at wholesale prices. Real Estate Investors using this strategy will make offers on bank-owned and distressed property. Once the property is under contract, the investor will quickly line up another cash buyer and immediately flip it for a small profit. For example, Investor A will get a house under contract for $50,000 and then immediate sells it to investor B for $55,000 either as a double closing or assignment. Investor A makes $5,000 fast and Investor B gets a good deal on a house worth $90,000.
The most successful investors can flip the homes without using any of their own money! When starting this strategy for the first time, the real estate investor should limit their risk by partnering with someone who has the experience and has flipped homes before. There are several investors who have money to fund a deal or have a list of buyers to flip it to.
So, just know that it doesn't take credit or cash to start your Real Estate Property Investing career. All it takes is a bit of simple knowledge, dedication and some action.
If you are interested in getting a start in Real Estate Investing with no money down, continue the knowledge and please visit Zero Down Real Estate Investing 101
For more Real Estate Investment and legal articles also visit The Legal Press
No comments:
Post a Comment