Real estate business stands out as one of the wealthiest business in history. More people are continuing to venture into this business, while others remain skeptical. One of the main reasons why people fear this business, is thinking that they need a considerable amount of capital to start the business. Well, that’s not the case. With the right strategies, timing, and patience, you can earn yourself a fortune.
With so many ways of getting high returns from this business, we’ve come up with the top three strategies of making money in today’s real estate business. The strategies include wholesaling, fixing and flipping, and bird-dogging. The first two strategies are ideal for investors with a low budget as well as beginners who have less experience. The latter can be a great deal for experienced investors.
Real estate flipping is considered as the best way of earning money in the real estate sector. However, it is also the most expensive method among the two strategies mentioned above. The strategy involves purchasing of old or discounted property, doing the renovation through adding infrastructure or repairs to it, and lastly reselling the property at a much higher price compared to what it was bought for.
This strategy requires a good amount of cash that is readily available during purchasing of the property as well as when renovating the property. Since you are buying the property, then all the transactions are legal without a license, and any brokerage laws do not bind you.
Before starting the flipping business, it is essential for you to know how the real estate market operates. The basic idea of being successful in flipping is buying cheap and selling at a good profit. Therefore, it is vital to know the low rates of properties and their market rates. Additionally, you should know which properties are easy to sell and which ones are not.
It is an excellent way to start investing in this business for someone with little capital. The strategy will not offer you a short path of getting rich but gives you the expertise about real estate that you can use to find your way to the top. The wholesaling concept is similar to flipping. The only difference is that someone who is wholesaling does not make any repairs before reselling a property.
Here, the wholesaler contracts a house with the house owner. The house will then be marketed by the wholesaler to potential buyers. Once the wholesaler gets a buyer, the house is assigned to that buyer at a higher price than the initial contracted price. The wholesaler earns his or her profit from the difference between the initial cost of the house and the amount paid by the buyer.
The best part of this strategy is that the wholesaler makes his or her earnings without owning the property. If the wholesaler does not get a suitable buyer within a given time span, then the wholesaler simply steps aside from the contract. It, therefore, means the only obvious risk to the wholesaler is the time spent looking for a buyer. Getting a license and practicing is an excellent way to pursue wholesaling.
The two-word phrase, bird-dogging, may seem like a weird term to add in a post talking about real estate. It’s because it’s a hunting term which means hunting dogs chasing birds and catching them before the hunter shoots them down. In real estate business, it’s used as an analogy, whereby the birds are discounted real estate properties, and the hunting dogs are real estate investors.
The strategy is a quick way of making money from the real estate business. Moreover, it is an excellent strategy for beginners with no or very little money to invest in real estate. Here, a property scout, a person who looks for properties for other investors, will locate homes that have issues getting sold. After finding such a property, the property scout gets a decent commission.
After that, he or she will start looking out for people interested in buying that property. Through sharing details of that property such as the address, the ‘bird dog’ earns his or her fees or commission. Therefore, one can see that the ‘bird dog’ should have a lot of contacts or be a good salesperson. Additionally, you don’t need a lot of cash because you are not buying the property. Here too it is advisable to have a license to operate.
The bottom line
The key to making all of this work without pulling your hair out is using digital marketing to our advantage.
With the onslaught of tools and services, it’s easy to get sidetracked with all of the shiny objects.
The core focus should be all about generating leads for both buyers and sellers as outlined by the Unlimited Leads Challenge for using Youtube to bring in leads in 14 days or less. Real estate is no different from other business in the fact that leadflow is the name of the game.
Just like any other business, real estate business requires you to have in-depth knowledge about its market, as well as money and time involved. Additionally, you should be cautious of the laws surrounding the strategy you will use to ensure you are not doing anything illegal.