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Best photo: ESTATE Buying, Fixing, and SellingA lot of people start in real estate investing by buying, improving, and selling property. Often, beginning investors make the improvements themselves. They work for six months—what I call hang and bang, drywall, paint, and clean—then they sell it. You can make anywhere from $12,000 to $30,000 on a property, especially ifyou fix up three or four homes a year. It can be a great business, but understand that it takes a lot of time and work. Quick Turning, Flipping, or Wholesaling With quick turning, flipping, or wholesaling, an investor finds a good deal, such as a house worth $100,000 that an owner will sell for less than that amount. Suppose an investor puts this $100,000 home under contract for $70,000. If he or she writes the contract Real Estate: The Best Wealth Builder in the Universe properly and puts in a disclosure and contingency clause, he or she will have little or no risk of losing money over this transaction. Shortly after buying the house for $70,000, the investor sells it for $80,000. He or she makes $10,000—a basic wholesale, flip, or quick-turn deal. The advantage of this income source is that you do notuse any of your own money or credit—you get paid for finding deals. The disadvantage is an uncertain future, so you cannot rely on the residual income you would have with the buying-and-holding strategy, and you will have to keep buying and selling property. (See Chapter 7 for more about this strategy.)Updates: Mortgage BrokeringConsultingAfter you have been investing in real estate for a few years, youBuying and HoldingMost people associate real estate investing with buying and holdingFresh news: © Copyright 2009 - Real Estate |
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