Making money selling property can be a very lucrative and exciting business. Done correctly, it can provide earning money from property, the monetary freedoms most dream of.
However, most newbies involved in real estate investing fail before they are even close to closing their first deal. Let me explain…
Most novice investors, when they start out, look for money first and while you would think this is the first step to getting started, it is certainly not the case. This tends to cause a lot of frustration and unwanted anxiety, which in part will cause most newbies to quit.
The first rule of thumb for making money selling property is to go out and find the deal first.
Let’s think about it for a second.
What if you were to go out, find a deal well below market value, and put it under contract? This would certainly provide the guarantee for you to go out and acquire financing through a private investor or hard money lender. Offers are available and once you have a good deal under contract the money will follow and having a good system for making money from property will allow you to be successful very quickly in this business.
Below you will find the four basic fundamentals that you can follow, which is an effective way to make money from property.
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How to find the offers?
In today’s real estate markets, you literally have the best option. Foreclosures are at an all-time high and finding good deals really isn’t that hard. Generally speaking, the most effective way to acquire businesses is through REO Realtors. 75% of my business comes from REO Realtors.
Also, another great resource for me has been the trustee sales auctions. However, I don’t recommend you start here first because it can be a bit tricky at first and a mistake here can cost you your entire life savings.
How to finance your business?
To start making money from property, you need to learn how and where to get financing. Once you’ve found a good offer and been able to put it under contract, proceed to finance your offer. Start by doing an online search for hard money lenders.
Here’s an example: Go to your favorite search engine and type: Hard-Money Lenders, Las Vegas, NV.
A list will appear on the results page. Review the list and call each lender. Introduce yourself as an investor and present your trade.
Note: These lenders will typically lend up to 70% of the fair market value.
Make sure you find an offer below 70% and making money on the property will not be a problem.