Tips For Making Quick Money in Real Estate

Are you dreaming about making quick money in real estate? If so, it is time to become educated about the variety of opportunities which allow you to capitalize on investment properties in a declining market.
 
Many options exist for making quick money in real estate. The most common include purchasing distressed properties such as short sale, bank owned and foreclosure homes. These types of homes are perfect for rehabbing, house flipping or wholesaling.

Purchasing foreclosed properties has quickly moved to the forefront as profitable realty investments. Foreclosure houses are sold through public auctions. Most require repairs and renovations. Many have tax or creditor liens. Occasionally, homeowners continue to reside in the home until they are forced out by the auction sale.

Investors must engage in due diligence to determine the true cost of purchasing foreclosure homes. The removal of liens or eviction of previous homeowners can be a time-consuming and costly task. However, if the house has been vacant for several months and if no liens are attached, foreclosure realty can provide a good return on investment.
 
When no bids are placed on foreclosed properties sold through auction, the home is returned to the mortgage lender. At this point, the house becomes bank owned and investors must work with the bank’s loss mitigation department to purchase the property.
 
Bank owned real estate is usually priced higher than foreclosure properties. However, once banks regain control of the home they can negotiate with creditors to remove liens. If the homeowner resides in the house, the bank handles the eviction process. Overall, bank owned homes usually cost less than foreclosure homes because they are sold with a clean title. Investors can easily take possession of the property and quickly rehab to sell or use as a rental home.

Wholesaling is one of the best options to make quick money in real estate. Investors buy properties below market value. This can be accomplished by buying real estate held in probate or purchasing bank portfolios consisting of multiple properties.

Investors who engage in wholesaling sell properties in “as-is” condition. They do not make repairs to the home. Instead, they purchase houses in need of repair and sell to another buyer for profit. It is not uncommon for real estate wholesalers to earn profits of 10- to 40-percent per property.  

In previous years, house flipping was the preferred method for making quick money in real estate. With the current recession, investors must carefully weigh the pros and cons of this technique. Flipping houses requires the ability to locate properties priced significantly below market value, rehab the property, and quickly selling it for profit.
 
In order to become successful flipping houses, investors must develop a strong network of buyers. One way to accomplish this is to become a member of real estate clubs. In addition to locating qualified buyers, investment clubs are a great place to learn insider tips, tricks and techniques. Investment clubs provide multiple opportunities to locate deals and partners.

These are just a few options for building a solid real estate investing business which can generate residual income and continuous profits. Investors who desire to learn more can find an abundance of information via the Internet, as well as networking and subscribing to real estate investment publications and newsletters.