52 Different Ways To Make Money In Today’s Real Estate Market

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At Strategic Real Estate Coach, we believe the only real shortcut to getting the money you deserve is Education & Action- both the kind you get from being on the streets buying property, and the kind you get from working with other investors who have achieved the success that you want to experience.

Consider this presentation a grab-bag look at the different ways to make money with Real Estate in today’s market. See if you can spot all 52!

Sheriff’s Auction (1)

This is the method banks use to take back properties in default from those homeowners who have failed to make their mortgage payments.

Once you have made your bid, put your money down, and seen the house — what’s next? What repairs need to be made? What is the neighborhood like? Is there demand for housing? Is there employment?

In answering the previous questions, you can decide to do any of the following: wholesale the house to an investor or end buyer who wants it (2) rehab the house and sell (3) keep it as a rental (4)

Free & Clear List

This is a list for purchase that provides the names of those individuals in your market that own their properties outright. In other words, they have equity because they have owned their houses for a number of years, and have kept current with their payments.

With these houses, you can make money by: wholesaling the house to an investor who will make repairs (5) rehabbing the house and selling it yourself (6) making the repairs and rent the house (7)

This can be a good portfolio builder buying the house using owner financing and then sell as a lease

option (8) You can also set up what’s called an equity split (9)

Do this by making an agreement with the seller on the front end that, for a discount on the house once it is rehabbed and sold, you’ll give him or her a percentage of the profit.

Out-of-State Owner This is very simply a list of out-of-state owners.

may be landlords who have property out-of-state might also be individuals looking to get rid of that vacation home

as a way to cut back on expenses These individuals can be extremely motivated to sell fast once

they grow tired of the care, maintenance, and general expense associated with their property.

There are two strategies to use depending on whether the property has equity or is in default If the house has equity, you may treat it as any other house.

wholesale (10) rehab and sell (11) rehab and rent (12) buy using owner financing and sell as a lease option (13)

Out Of State Owner (cont.)

If the house doesn’t have equity, then you’ll need to: Short Sale (14) Wholesale (15) Rehab & Sell (16) Keep it as a rental (17) Lastly, you could simply send the lead to another investor (18)

Fire Damaged House

As a general rule, if you decide to take on one of these, then you need to decide whether it’s cheaper to knock the house down and rebuild than to make the repairs (19)

For some investors, fire damaged houses are cash cows. They like the fact that if they can get to the seller before

the insurance money arrives, the seller can be instructed to pay down the mortgage, which creates equity and room for a discounted offer to be accepted.

For these investors, they may: Buy cheap & sell (20) Rehab & rent (21) Wholesale (22)

Probate This is the legal process of determining the validity of a will, paying

off the debts of the estate and determining who is to receive the remainder of the estate.

When targeting probate houses, look for houses that have been inherited. Families are looking to sell these fast. unfortunately, if there is a will involved, these houses can be tied up in

probate for several months. Exit strategies for Probate houses

Wholesale! (23) Retail (24) Buy, fix, & rent (25) Or act as a bird dog and send the lead to another investor (30)

Divorce List

People looking to get rid of a house due to a divorce can be motivated sellers.

Go for a short sale. since financial stress is the leading cause of divorce, chances are

slim that you’re going to find a house in a divorce case that has equity.

Use the previously mentioned strategies to turn your hard work into pocket money

NOD List Notice of Default List

includes all the names of those people in your market who are 90 days late in paying their mortgage.

One of the very best ways to find motivated sellers.

They may not want to sell when you first contact them, but just keep coming back (ask for permission first) and at some point, most wake up and see that losing the house is a certainty, and that they need to consider the next step.

Most don’t have equity, so… Wholesale (31) rehab and retails (32) rehab and rent (33)

Code Violations

The inspector will assign a violation that the homeowner has to address by making the necessary repair in a specific amount of time. A house on this list can often suggest financial distress, which

usually means motivated sellers.

With these houses, you have many options. Wholesale (35) Buy, fix, sell (36) Keep for your rental portfolio (37) Short sale (38)

Driving For Dollars (39) When you’re driving around town, keep your eyes out for distressed properties.

Indicators include: Peeling paint Shoddy roofs Tall grass Mail at the doorstep

With a little effort — either by knocking on the door to see if anyone is home, or by checking with the neighbors to see if anything is known about the house — you can get enough information to track down the owners to see if they are willing to sell.

If property has equity Wholesale (40) buy, fix, sell (41) Keep it as a rental (42)

If there’s no equity, Short Sale (43)

Tax Liens

Property owners who do not pay their property taxes often will be subject to a tax lien.

Usually, the two go hand in hand, but what you need to know is that property taxes take precedence over mortgages, which means that the city can sell the house for cheap.

Your best option is to pursue a short sale. (44)

Bird-Dogging This is simply the practice of providing secured leads to other real

estate investors for a fee.

You may Sell your lists to local investors (45) for $1000 (making sure to update

them monthly for continuity) or take the time to qualify the lead, set the appointment, etc., and deliver a done-for-you lead service for investors (46) willing to pay your price.

As you acquire these opportunities to buy houses, you should use some of them to help you build your network of buyers — other investors, rehabbers, landlords — in your area.

Buy the house outright as a traditional sale, take ownership of it and then resell it.

Assignment (47)

An assignment is a good option when you have a house under contract, but for whatever reason you decide that you’d rather not buy it.

Since every lead is money, you don’t want to just walk away. If you don’t want to make the buy, then another investor in your market probably will, if the contract price is low enough. This is called wholesaling.

The process involves the use of an assignment form, which gives the new investor the right to buy the house for a fee that goes to you in return for you giving them your contract and pre-negotiated price.

Back-to-Back Closing (48)

This will be an important strategy when you need to sell fast, and you don’t want to hold onto the property for more than a few days.

In a back-to-back transaction, the investor (B) buys the property from the bank/seller (A) and then immediately sells to the end-buyer (C).

FSBO – For Sale By Owner (49)

You own a property, and are looking for a buyer to sell directly to.

Green Light Selling System

When you use this strategy, you are using a combination of yard signs, staging, and the Internet to generate interested buyers.

There is a three-phase approach we use to getting massive amounts of traffic (potential buyers) to the house.

Wholesaling (50)

This is when you sell a property quickly to a buyer who will close quickly and accept the property in its as-is? condition — even if it needs work.

Another way to think of it is being a middle man. Wholesalers buy low and sell fast with little to no work done on the property.

REOs

These are properties that have gone through the foreclosure process and have been taken back by the bank.

They are usually listed with a specific real estate agent in your area (or several) who is then responsible for selling the property.

Short Sale

A short sale will occur when the bank agrees to take less than what is owed on the home’s mortgage.

In essence, they are shorting? the loan. This gives real estate investors a wonderful opportunity to buy property for less than they otherwise could.

Rehab (Fix & Flip)

This is when you buy, hold, rehab and sell a property (or fix and flip).

The common approach for establishing what to offer the Seller is to take the After Repaired Value (ARV) of the house, multiply times 65% then subtract repairs.

Note Buying (51)

When you buy a note, you become the bank. It’s a promise to pay. It must have a beginning date, an ending date, and a place to pay; it must state who to pay and under what terms.

In real estate, you need to remember that a note is secured by a mortgage. Without a mortgage, a note is only secured by a person’s promise to pay.

When you buy a note, the persons involved are normally the seller of the property (the homeowner), the seller of the note (the bank), and you as the investor looking to buy the note.

Long Term Rental (52)

You may choose to make money by purchasing a property and then renting it, thereby acting as a landlord.

This can be a profitable investment, particularly if you find tenants who will pay their rent towards the eventual purchase of the property (lease to own).

For more information,

Please visit www.strategicrealestatecoach.com