Many new real estate property investors are asking the identical questions:
- Which is the best way to succeed as an investor in real estate?
- How do I establish my real estate investment business using as very little of my own funds as is possible?
Do hard Money will be here to answer your questions and more. It's true when it comes to real estate investments, you can have cake, and have it too. It's just a matter of learning the best way to make money. However, let's begin from the beginning.
WHAT IS THE BEST WAY TO ACHIEVE SUCCESS AS A REAL ESTATE INVESTOR?
In the first place, your strategy for investing in real estate should be a business, not a quick-fix scheme. Many investors who are new to investing think of fixing and flipping as a chance to earn money quickly but many investors fall short due to this. They work using an approach known as the "bottle rocket" method.
The “Bottle Rocket” Method
The first time fix-and-flippers view real estate investment as an exploding bottle that you ignite one time and watch it explode. They believe that real property investments are an "one-and-done" wealth accumulation technique that all you have to do is to find the right, correct and flip profitable deal. And then, relax and watch the money start flowing into. This isn't the situation with fix-and-flips. Investors who are more successful understand that the best investments start in "the "diesel engine" method.
The “Diesel Engine” Method
In order to build a successful REI business You must realize that you're creating an oil-lubricated machine that will eventually operate independently. Like the diesel engine it could take a long time to get warm in to the temperature of an REI business. It requires time patience, money, and a lot of effort. But once you have managed to "warm-up" your investment business it will last for a long, long duration. When you have sold one of your flips (the warm-up) then you collect some of the profits and use it for an earnest money to fund your next flip. After that, you can use those profits to fund the next flip and the cycle continues. Then, before you know it you've got an efficient engine that is generating perpetual income and creating a never-ending pool of returns from investments.
HOW DO I BEGIN?
In order to build a successful REI business You must realize that you're creating an oil-lubricated machine that will eventually operate independently. Like the diesel engine it could take a long time to get warm in to the temperature of an REI business. It requires time patience, money, and a lot of effort. But once you have managed to "warm-up" your investment business it will last for a long, long duration. When you have sold one of your flips (the warm-up) then you collect some of the profits and use it for an earnest money to fund your next flip. After that, you can use those profits to fund the next flip and the cycle continues. Then, before you know it you've got an efficient engine that is generating perpetual income and creating a never-ending pool of returns from investments.
How to Wholesale a Deal:
- Find the property you want to buy and put it under contract. Suppose you come across a house which is priced at $50k. You offer to purchase it and sign a contract.
- The property is sold for someone who can repair and flip it to make an income -You can sell it for $60,000 to a fix-and-flip retailer who is interested in fixing and selling the property.
- Make a small income without doing the work. You made 10k in profit without needing to repair any thing!
We recommend that you do several wholesale deals prior to beginning to fix-and-flips. You could earn a small profit and , in the meantime discover more about discovering, rehabbing, and selling the best deals. You could also utilize these profits to cash-to-close or earnest money in the event that you are ready to make your first fix-and flip deal.
A Successful Real Estate Investment Business Uses a Pouring Technique
The first step is to start modestly with the wholesale deal, and you earn about 10k. In the second, you invest that money into a fix and flip deal as earnest cash and increase the total profits. You then sell that flip for $30k. After that, you pour 20k of the profit into another flip that generates $50k. After that, you pour 30k from that profits into a second flip, generating $90k, it goes on. Then, you're able to start exploring other options for real estate investing such as buy-and-holds. In no time you've created a strong income portfolio, your money will be working hard for you, and the real estate investing company is flourishing.
HOW CAN I SET UP AN REI BUSINESS USING AS LITTLE OF MY OWN MONEY AS POSSIBLE?
There are two excellent ways to start your investment business without using much of your own money:
- Wholesaling a deal
- Finding a golden property
Wholesaling a Deal
As we said earlier the only thing you need to do is locate an asset that is worth your time and place it in agreement. After that, you can sell it to a fix-and flipper to make an income. You'll get the sum of $10k you can put into your next fix-and flip deal as cash-to-close without having to pay one cent of your own savings.
Finding a Golden Property
Another option to begin the REI firm without using your own funds is to locate an investment property that is so valuable it can be sold for no cash. Although this can be a difficult thing to accomplish, it's feasible. This is the procedure in simple terms:
- Search for the best areas and locate an apartment that is selling at an affordable cost.
- Assess the property and identify an ARV (after-repair value).
- If the costs of the loan (purchase cost, rehab costs, closing costs etc.) meet the 70% threshold of ARV then you are eligible for a cash-free closing of $0.
- You can fix it up and resell your property at an income without having to pay for it with your own cash!
Here's a fantastic illustration: a borrower of ours known as James F. located a wonderful property in a desirable Chicago, IL neighborhood. The property was listed for just $25,000, which is why James took the purchase into Do Hard Money. We calculated that the ARV was $133,000. We were able to qualify James to receive a mortgage amount of $95,000. This covered the purchase price of $25k as well as $42k cost of rehabilitation and $24k for closing expenses. He also had funds to spare! He was able to qualify for cash-to-close at $0 and made an all-in estimated gain of $28,557.
jackaron tyler 
