Wholesaling
Can I really make money with real estate without money?
Well the truth is technically yes, but really, seed money helps.
So how can you make money if you don’t have any, or you have bad credit?
1. You can bird dog. What this means is look out for deals and then get the lead to another investor with resources to “take the deal down.” You do need to make sure that you do not put the “seller” together with your investor, because that could be seen as you acting as a real estate agent, which you are not. So be careful the you do not actually have contact with both…you have the investor make the contact, and you have an arrangement with the investor for a fee if he buys the subject property.
2. The second way to make money with no (or little money) and bad credit is to wholesale. Basically, when you wholesale, you are finding the seller, negotiating with them, GETTING THE PROPERTY UNDER CONTRACT, and then SELLING the CONTRACT or right to buy the property to another investor.
Does this really happen? Yes it does…Everyday of the year. There are many investors out there that don’t have the time or enjoy marketing to find the leads. They would rather pay some to bring them the deal.
So how much can you make Wholesaling? You can make $10,000 or more with this strategy. Think about it this way. You find a deal that you got for $50,000 under market value. Would someone pay you $10,000 if they can keep the $40,000? You bet.
Wholesaling is the way many start out in Real Estate Investing, and this really is the way that we recommend you start.
Why?
Because you need to be able to find great, not good, great deals that have real profit in them if an experienced, savvy investor who knows what they are doing is going to buy the rights from you. If you can wholesale, then you can find profitable deals. Then you can build up your seed money, and move into other strategies.
Also-YOU DON’T HAVE YOUR MONEY AT STAKE! If you can’t find someone to wholesale to, you don’t have your money in the deal.
Wholesaling is a perfect way to get your momentum in the business, and a great way to learn the ropes. A great wholesaler knows how to find deals, network, negotiate, and estimate project costs. Again, we highly recommend Wholesaling as your start in Real Estate Investing.
NOTE: I want to be clear that I am not saying to go out and get properties under contract, tie them up for 30 days, try to wholesale them and then leave the seller hanging without a sale. You need to make sure your intent is truly to take care of your seller. Often time, if I get a property under contract, and I am not able to assign the deal to another investor, I will give the seller one months payment, or some kind of compensation for tying up the property. Remember you need to be an ethical investor. Be responsible, and moral. There are enough real estate investors out there giving us a bad reputation.
Copyright RimfireWholesaleDeals.com
For more information, tips, offers, and deals as they come up,