Many people hold a notion that it's a hassle to invest in real estate. They think that it requires long time and a large amount of hard work. This false impression is commonly derived from the archaic traditional method of investing in real estate. Real estate today is by far one of the fastest ways to get rich in US. The current housing market has brought about many opportunities for regular people to capitalize from intrinsic value in homes. However, the only way to spot these opportunities is to acquire knowledge so that you are carefully aware when they're presented.
Usually, In order for you to invest in real estate you would have to have one of two things- Money or Credit. Once you purchase a piece of property you would have to invest even more money to make improvements. In turn either raising the value of the home down the line or making it of standard for renting. Essentially, the problem with this method is that if you don't have those resources to start with then the option to invest in real estate is practically off the table. Luckily, there is an advantage of not having those resources. And ironically that advantage happens to be that you’re able to capitalize from the people that use the traditional way of real estate investing. This is only possible through an investment strategy known as wholesaling. This strategy allows you to outsource potential pieces of investment properties directly to the rehabbers. Think of wholesaling as being middle manning. You see majority of people who rehab homes are advocated investors and they're always looking to buy real estate to invest in. But the problem is that, since they're spending so much time fix up homes, they don't have enough time to go out and search for good investment homes. So they leverage their time by paying someone else to do it. And that someone else could be you.
Now there are multiple wholesaling strategies to consider from if you decide to wholesale. The first on is called assignment of contract. With assignment of contract what you basically are doing is getting the purchase of contract for a home on lock via acceptance from seller. Afterwards, you connect the rehabber with the seller so that they can close the deal. And once they do you get compensated for the work. Next there is a strategy know as double escrow or double closing. Double closing is similar to assignment of contract except instead of linking the rehabber with the seller you actual purchase the house which is usually done through transactional funding. Then the same day you buy the home you sell it to your rehabber. And last but not least you can birddog the information about the potential investment properties to the rehabbers and still make a nice amount of money.
For more Tips and insights keep flowing us: