Investing in real estate has always been known as a business for those who can wait. After all, real estate can sometimes take decades to appreciate. So Romeo Abdo before you make significant income from a property, you will have to let it sit for years. Unknown to many, there are actually forms of investing in real estate that allow you to earn profit fast. These are the investments that are thriving despite the economic slowdown: Wholesaling, rehabbing, and rentals.
Wholesaling is basically putting a property under contract and then assigning that contract to another wholesaler or to an end-buyer. It’s like promising the owner that you will buy the property within a period of time. You get your paycheck when the buyer purchases the property.
Another hot form real estate investment is rehabbing. This is buying a cheap property and repairing it to raise its value. You then sell it for a much higher price. TV shows “Flip This House” and “Flip That House” featured this kind of investing as fixing and flipping houses.
Rentals are also investments that pay you quickly, although only in parts. This is buying a cheap property, making repairs if necessary, and then marketing that house for rentals. This strategy is ideal for properties that are located in college towns. You can target students as tenants and rent the property per room. You get your money when tenants pay you rent. The return here is relatively smaller compared to wholesaling and rehabbing although this is a regular and steady source of cash flow because rent is paid monthly.
Much of the success of these three forms of investing in real estate has to do with the availability of cheap properties in the market today. REOs, short sales, and fixer upper homes are some of the kinds of properties you can buy today at bargain prices. REOs, or real estate owned properties, are houses repossessed by banks and other lenders from owners who failed to settle financial obligations. These have already undergone foreclosure so all liens and claims against them are eradicated. This is why their prices are low. Short sales, meanwhile, are houses facing possible foreclosure. Owners of houses for short sales would rather sell their properties for pennies on the dollar than face foreclosure.