Investment Strategy #1: Wholesales

One of the true "no money down" deals in real estate, wholesaling is where many people get started. When you wholesale a house, it means you find a property that you can buy for less than it's worth and then sell that property to another investor. If you find a $100K house that you can buy for $80K (usually due to death, disability, divorce, layoffs, or they've moved out of state suddenly to a new home because of a job transfer), you can sell that house to another investor for $85K and make a quick $5,000. Houses are not hard to sell if they're worth $100K and you sell it for $85K.

If the house is ugly you can sell it to a rehabber. If it's in good shape you can sell it to someone who wants to keep it and rent it out. As long as you can find another investor who would like to buy that house, you don't have to fix it up or find tenants or find money to buy the house yourself. You simply offer to buy the house from the owner, write up a contract that allows you to pass the house along to someone else, and sell that contract to another investor. Since it's not too complicated, many of our wholesalers can do several deals a month and make $5K~$20K per deal.

Strategy #1.5: Bird-Dogging
Another thing that can be mentioned here is being a "bird dog", someone who finds houses for investors. Even less complicated than wholesaling, bird dogs don't put a property under contract but just give investors leads to possible deals. Postal workers, handymen, and other people that spend time around residential properties can take note of houses that are vacant or for sale and alert investors for a finders fee.

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