by Simon Volkov
Most investors dream of making quick money in real estate. In order to turn this dream into reality, real estate investors need to invest time in becoming educated about the various opportunities to capitalize on a recessed real estate market.
Several options exist to make quick money in real estate. These can range from buying distressed properties such as foreclosure, bank owned or short sale properties to rehabbing, house flipping and wholesaling real estate.
Investing in distressed properties is one of the more popular real estate investments. Foreclosure homes are sold through public auctions. Many of these homes require repairs or have tax or creditor liens attached. In some cases, foreclosed homeowners continue residing in the home until they are forced to leave.
Investors must engage in due diligence to determine the actual cost of buying foreclosure homes. It can be time-consuming and costly to have liens removed or engage in the eviction process. However, if the property has been sitting vacant and no liens are attached, foreclosure homes can be renovated and sold for profit or used as rental property.
If no one bids on foreclosure houses through auction, the property is returned to the mortgage lender. At this point the property becomes bank owned and must be purchased directly from the lender or their assigned real estate agent.
Bank owned homes are typically priced higher than foreclosure homes. However, banks negotiate with creditors to have liens removed. If homeowners reside in the property, the bank commences with eviction. In the long run, bank owned properties usually cost less because they are sold with a clean title and investors can rehab the property to sell or use as a rental home.
Wholesaling is one of the best ways to make quick money in real estate. Investors purchase real estate well below market value. This can be accomplished by purchasing bank portfolios consisting of multiple properties or locating real estate held in probate.
When real estate investors wholesale homes they sell them in "as-is" condition. In essence, investors act as a property broker. They do not make repairs to the home or invest additional monies. Instead, they buy the property and sell it to another buyer for profit. It is not uncommon for investors to earn 10- to 40-percent profit per sale.
House flipping used to be a popular way to make quick money in real estate. With the economic recession, investors must carefully weigh the pros and cons of this technique. Flipping houses involves purchasing real estate below market value, rehabbing the house, and selling it quickly for profit.
One option for developing a solid network of buyers is to become a member of real estate clubs. Not only will investors meet potential clients, they can also learn real estate investing tips, tricks and techniques. Real estate clubs provide many opportunities for locating exceptional deals and partners for making quick money in real estate.
These are just a few ways to build a solid real estate investing business which generates residual income and continuous profits. The Internet provides a wealth of information on becoming a real estate investor or expanding your investment business.
Simon Volkov is a seasoned real estate investor who offers multiple investment opportunities via his website at www.SimonVolkov.com. Simon provides a comprehensive real estate investment article library which offers tips and resources to earn quick money in real estate.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment