What I want to help new investors with is how to gather cash to evolve in their real estate investment to more long term cash flow strategies. Long term rental property or multi-family investment are cash flow strategies that are supporting many nice retirement lifestyles. However, they do normally require cash for down payments to get the mortgages necessary to buy the properties.
So, let's talk about a way to start generating cash quickly so that you can grow your cash nugget into a gold bar. Another caution needs to be here. I'm not talking about jumping into this strategy without the knowledge you need to make it successful. You need to take the time necessary to learn what you need to know and to research your market so that you make good decisions. Whether the education takes you a couple of months or a week is up to you, but take the time.
http://www.youtube.com/watch?v=B85jyM3QL14
Most of your customers will be other investors, generally either a fix & flip investor or a long term rental property dean graziosi biography investor. The decision as to which is normally related only to the condition of the property. If it doesn't need work to get a tenant installed, then direct to the rental investor is the way to go.
The challenge is to buy the property at enough of a discount to sell it to your buyer at a discount as well. Even a rental property buyer is an investor and will want to buy below current value to consider it a good deal.
So, your major challenge is in locating homes you can move from seller to buyer at a discount after your profit in the middle. It's done all of the time, but the trick is locating these homes. That's a subject for another article, but most will be found by:
Running classified ads; you know, the "I Buy Houses" type of ads
Placing "bandit signs" at street corners
Running ads in and searching Craigslist is a great resource
Once you locate a home that can be purchased at a significant discount to current market value, you gain control of dean graziosi findbuyerslisturlhere it and present it to one of your buyers. You generally will know what they want and will be pretty certain the deal will happen.
You don't need any more cash than the earnest money needed to get the seller to do the deal. You can get funding for back-to-back closings from a transaction lender. They fund the purchase and generally the sale to your buyer happens within hours or a day or so later. They take their fees and get back their investment at that closing table, and you get your profit.
Another way is to do an "assignment" contract. It is a wording change for the buyer (YOU), which now says "YourName and/or assignees." This means that you will be assigning the contract to your buyer. They take over the deal and you're paid your commission, usually at the closing. In either case, your total risk is just the earnest money, so it's a pretty good strategy.
In either case, you're normally into and out of a wholesale deal in around 30 days or less in some cases. That's fast cash, but put some of it into a growth account to fund your transition into rental properties in the future. Long term cash flow and value appreciation are the best investment objectives.
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http://www.huffingtonpost. Dean Graziosi is a NY Times Best Selling Author together with one of the leading inspiration and also property instructors in the world.If you have ever seen Dean on TV, on stage, or in an once a week knowledge on his web site or Facebook, it is obvious the interest he needs to get EVERYONE encouraged to transform their lives right. Unlike most supposed "Gurus[/img]
