Fort Worth Wholesale Property

Fort Worth Wholesale Property

First of all, I am going to start out by saying yes, investing in real estate may be the fastest way to get rich. There is no cap on the amount of money that can be earned in real estate. Most jobs have a salary or an hourly wage that you earn for performing your duties of that position. It takes a long time to increase your pay. In real estate, you are in control. Your motivation is a direct correlation to the size of your paychecks. If you are willing to work non-stop, constantly educating yourself and performing deals you are going to make a lot of money. Here are a few reasons to invest in real estate:

1. Where else can u make a full year’s income in less than three months? When I was nineteen years old, I was working 30 hours per week for ten dollars per hour while going to college. This same year I started putting my knowledge into action and began investing in real estate with many of the “no money down” techniques I had been studying. I’m sure you can guess what happened. That year I went on to make more than four times my yearly income. I am now only twenty three years old and this is still true. In one month’s time I am able to purchase and renovate a house. By the time I close and receive my paycheck it is typically a two to three month process. On average I earn a profit of thirty thousand dollars on each flip. I also do more than one at a time. Now, even doing only one at a time I would be able to make an average of thirty thousand dollars every three months. Not bad right? How many people are currently putting in forty hour work weeks to earn a salary of thirty to forty thousand dollars for the entire year?

2. Secure your future retirement through buy and hold strategies. Investing for the long term is a popular saying and the best way to do so is to buy and hold real estate. On average, statistics show that the market value of properties double every ten years. I am currently in my early twenties and I own a few multi-family rental properties. I intend to own at least ten more within the next five years. This is aside from flipping houses every day for a living. This is going to create a nice payday twenty or thirty years down the road. These properties will be owned free and clear and the value will have gone up drastically. This is a pretty simple way to make yourself a millionaire when you retire. If the properties are rented out for enough money to cover the mortgage, then your tenants have paid off your loans! Of course being a landlord can be tedious, but isn’t it worth it?

3. You are working for yourself, not reporting to a boss. For many people this may be the single most important benefit to being a full time investor. You are free to live your life as you want to. Take a lunch break for as long as you want. If you don’t want to get up for work on Monday you don’t have to. You will have the opportunity to spend time doing what is most important, enjoying your life. Personally, I enjoy being able to create my own work schedule, however, at the same time I work twice as hard knowing that it’s for my own benefit.

Dallas Wholesale Properties

Fort Worth Wholesale Property

Finding a new deal today may not be all that difficult, however, turning your new found investment into a solid deal takes a little more effort and diligence. Deals can fall apart as quickly as they come together if you are not doing your homework! I want to share a few tips with you on how to keep your deals together when you are performing any one of the investment strategies I teach.

When doing a wholesale, you have to keep a couple things in mind. First of all, you need an escape clause in case it turns out that you can’t find a buyer for the property you put under contract. This creates the need for one small contingency. I always make deals subject to the approval of my partner. This way if I can’t sell the house I can go back to the seller and tell them we need to renegotiate otherwise my partner is not going to approve the sale. If I didn’t do this, then my deal could slip through the cracks and I would be losing out on a lot of potential money. Secondly, you have to have a firm grasp on the amount of money the property needs in repairs so you can estimate how much you can sell the house for and how much you can charge for a fee.

When you are performing a subject-to deal, there is one major deal killer that you must watch out for. This is known as a clouded title. You have to be able to perform a miniature title search. If you are not comfortable with doing this, then hire a professional. Remember, you are going to be assuming the seller’s mortgage and taking over title to the property. This means you are getting whatever is coming with that house on its title. If there is a hidden second mortgage somewhere, you are now responsible to pay it off. Talk about a headache, right? Well, if you follow these simple rules and perform your due diligence this won’t happen to you.

Short sales create a similar scenario as subject-to investing. I always do some preliminary research on these properties and it starts with asking the homeowner if they have any liens on their property that they are aware of. I then go to the city hall and perform a title search. If you make an offer to the bank, you need to include any liens that need to be paid off including mortgages, hospital bills that are now attached too the property, tax liens, etc. You don’t want to receive a phone call a few days before closing informing you that you now owe ten thousand dollars in delinquent taxes because you forgot to include this in your preliminary settlement statement when you made your offer to the bank.

Diligence, research, and proper management will keep your deals going steady without a hitch. You have to always be alert and ready to problem solve. It is an essential part of being a real estate investor.

Dallas Wholesale Properties

Fort Worth Wholesale Property

I have touched base on wholesales before however I want you to understand how powerful this niche in real estate investing really is. Does the term “fast cash” catch your attention? Wholesaling may be one of the most profitable niches in real estate in terms of hours worked versus the size of your paycheck. The standard wholesale check that I earn ranges from three thousand dollars up to twenty thousand dollars. However, on average they are between five and ten thousand dollars. Here is what makes this business so lucrative. A typical wholesale deal takes less than a full day of work to complete. I take a walk through the house, meet with the homeowner, do some research at the city hall and on the internet, and call people on my buyer’s list to see if they want the house. I can do all this within a few hours. If I earn a wholesale assignment fee in the amount of ten thousand dollars and it took me four hours of actual work to complete the deal, I am being paid quite well. You don’t have to be a math whiz to realize I just got paid twenty five hundred dollars per hour. Now how many of these deals do you need to do each year to be a full time real estate investor?

Here is another reason why wholesaling is such a great business. You do not have to be a genius with a high degree of education. An amateur can do this with a little training. This business creates an opportunity for literally anybody to make a fortune in real estate.

If you are looking to get started in this business there are a couple key elements you have to understand:

1. Networking: In order to be successful, everyone has to know that you buy and sell houses. Don’t try to run your business under the radar. People must know you as the person who always has great deals for sale. You want them to come to you. You can start by attending your local real estate investment clubs. Every state has one. They typically meet once a month and the place is full of investors. Not a bad place to build a buyers list.

2. Research: You must have a firm grasp on real estate values and the average cost of repairs. This will come with experience, however you can get pretty good at it just by doing research on your local town’s property values. I am able to pinpoint exactly what an investor will pay me for a house. I do this by knowing how much money the repairs will cost them and how much they will be able to sell the house for once they complete the repairs. This is how I determine the size of my finder’s fee. If there is a large spread of equity I will be charging a larger fee.

Here is the best part. You can never be overwhelmed with deals because you are not buying houses and you are not rehabbing houses. You are flipping contracts. You have almost zero overhead costs to run your business.

Dallas Wholesale Properties