It wasn’t long ago that real estate was the way to make money. But, is that still true? Things are by no means back to the “old ways” but if you look around, you will see that the tide is changing. Money can be made in real estate investing. Strategic Real Estate Coach presents this list of ways you can profit from today’s real estate climate.
1. Auctions
Real Estate auctions of all sizes and types are among the richest grounds for good properties. But, newbies need come prepared. Lack of research is one of the biggest newbie mistakes.
2. Divorces
Owners in the middle of a divorce are usually very motivated sellers. Be wary of properties that are underwater; in those cases, a short sale is the best bet.
3. Tax Liens
Properties with unpaid tax liens often end up on the auction block after foreclosure. The government has no use for the houses; they just want their money. Sometimes you can find out about these opportunities before foreclosure begins and see how motivated the property owner is in getting out from under the debt.
4. Notice of Default (NOD) List
The NOD list is a treasure trove of buying opportunities. The owners of the newest listed properties may need a bit of (gentle) coaxing before they realize they can’t get out of their situation, but if you are persistent, the rewards can be huge. As with other foreclosure and pre-foreclosure properties, find out how much is owed to the lender.
5. Real Estate-Owned (REO) Properties
Also called bank owned properties, these have already been through the foreclosure process and are now owned by the lender. There are lists for these properties available – agents in your area have them.
6. Short Sales
This is when the bank is willing to take less than what it is owed. Huge profit potential or the chance to own a great property at a bargain basement price.
7. Rehabs (aka Flips)
Although “flipping” isn’t as popular as it was, it’s still a solid way to make a profit – if you do it right.
8. Wholesale purchases
Buy low and sell fast – without even touching the property – to a buyer “as is.”
9. and 10. Rental Properties
There are actually two approaches here:
• Purchase an unoccupied rental property, fix it up, then rent to new tenants or sell it.
OR
• Purchase a non-rental property, fix it up and rent it out.
11. Distressed/Damaged Properties
Drive around and check out any houses with peeling paint, old roofing, tall grass or other signs of neglect. Maybe a building damaged by fire can yield a workable deal. You may be able to find a motivated owner. Take care and get as much information as possible before buying.
12. Free and Clear Properties
You can buy a list for properties in your area that are owned outright. Making an offer to an owner could be profitable.
13. Out of State Owners
Rentals, vacation homes or maybe houses purchased for the big retirement move that never happened.
14. Probate
Heirs often need to sell a property in order to split the proceeds. A cash offer is likely to motivate.
15. Selling Leads (Bird-Dogging)
Create a list of secured leads by doing the legwork yourself and sell that information to local investors. Or, you can do all of the preparation and presentation and present it to investors and take a finders-fee.
Just because you’re not an agent or big-time investor, doesn’t mean that you can’t dip a toe in the waters of real estate investing. It’s easier than you think! The list above isn’t hard and fast – there are many more ways to take advantage of investing in real estate. Use this list as a springboard and dive right in!
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