It’s a fact, more millionaires have been made through real estate than any other money-making vehicle. But have you ever wondered how real estate investors make money investing in property?
Essentially, there are several ways to make money from real estate. One of the tried and tested strategies is a method affectionately known within real estate investment circles as “fix and flip.”
Fix and flip is a real estate investment strategy that allows you to make a profit by finding cheap and distressed properties, fixing them up, and selling them for a higher price.
After successfully negotiating with a motivated seller, your goal is to gain control of the property in question, either by purchasing it outright or by placing it under a contract with favorable terms that allow you to execute your most ideal exit strategy: fix and turn around. .
These days it is very easy to find distressed properties as well as financially distressed homeowners. This is largely due to the weak economy that we are experiencing right now.
However, what seems to intimidate most investors from taking advantage of today’s vast investment opportunities is their inability to figure out “how do I buy or get control of the property if I don’t have the money to get started?” part of the puzzle.
I would like to share with you a secret that most successful investors use over and over to earn money regardless of how much money they have in their bank accounts or not.
You see, ‘fix and flip’ investing works much more effectively when you have funds to back it up. It just makes it so much easier. Take advantage of real estate investment loans to get started. Real estate investment loans are essentially private loans made by other successful investors who are no longer involved in the day-to-day real estate investment aspects of the business. These veteran investors have deep enough pockets to lend some of their money to active investors who fix and flip.
One good thing about “fix and switch” loans is that they are much more flexible than traditional or conventional bank loans. Reason number one is the fact that with “fix and change” loans, the loan is secured by the property. Most programs don’t even check credit.
To increase your chances of obtaining an investment property loan, you should always make sure that you buy your offer below market value. You also need to make sure to estimate repair costs accurately. Also, you need to make sure you shop in a neighborhood that is desirable. Your investment property must not have significant structural damage. Barring any of these shortcomings, obtaining an investment property loan shouldn’t be that difficult.
You can get started right away, buying, repairing, and flipping properties using repair and exchange loans.