subject: How To Make Money In Real Estate: A Guide For Cash-Strapped Investors [print this page] How To Make Money In Real Estate: A Guide For Cash-Strapped Investors
With the economy suffering from one of the worst downturns in decades, securing funds that will help you bring food to the table and send your kids to school has become quite difficult. Everyday, we read and hear stories of people losing their jobs because their employers are reducing manpower to cut operating costs. Despite such unfortunate occurrences, however, you should not lose hope. It is because there are simple ways to generate profits, particularly in the real estate business.
Contrary to popular belief, there are several ways to make money in real estate even if you are broke or have no credit. One of them is to wholesale houses. Wholesaling is a method of investing in real estate wherein a real estate investor serves as a middleman between a home buyer and a seller. The main tasks of a wholesaler are to find a property, place it under contract, and then assign or pass on the contract to an end buyer.
The reason why wholesaling, or flipping contracts, is mostly suited for cash-strapped investors is that you don't need a huge investment capital to get started. Unlike when buying and selling houses, you don't have to put your own funds in a property for you to make money in real estate. And what's good about wholesaling is that you can earn profits in just a shorter period of time.
Aside from wholesaling, a beginner investor can also start making money by rehabbing old and undervalued homes. Rehabbing simply involves the process of renovating a dilapidated property and then reselling it to a retail buyer.
While it is true that fixing and flipping properties can cost a considerable amount of money, you can still take a rehab project even if you don't have enough funds in your own pockets. How, you ask? By securing financing from hard money lenders.
Unlike traditional financiers, most hard money lenders don't care if you have poor credit score or have no verifiable sources of income. As long as you're going to borrow money for a rehab project that has a high after repair value, you can obtain the funds you need to fix and flip an undervalued property.
You see, there is still hope amid the economic recession. Even if you have been laid off from your job, you can still bring food to the table and send your kids to school by trying to make money in real estate. For more information on real estate investing, meanwhile, go to www.REIWired.com.
