“If it’s too good to be true, it probably is.”
How many times have you heard that in life?
Isaac Toussie in this article reports on the amazing possibilities offered by real estate investment. In this installment, we’ll be taking on that time-honored adage and investigate whether it really applies, even in today’s depressed property markets.
But as always, understand that what follows is simply my own personal opinions and should not be construed to be professional advice. Anyone considering a business decision of consequence really needs to also consult lawyers, accountants, and the like. The content of this article, like that of all my many articles on the internet, are simply the experiences of one person, me, Isaac Toussie, and what has worked for me; your mileage may very well vary.
Now, the topic today is what I call no-finance real estate – usually filed under “things too good to be true.” But it’s definitely true, even in today’s economy, that you do not need a spotless credit rating or even loads of money to get started in your real estate adventure. I’ve been a housing developer for years, and my own first-hand experience proves that it’s possible to start out at the bottom and end up on top.
Remember that the number one asset you possess is your brain. Even if you had a million-dollar portfolio, it is your own intelligence, and the due diligence you take to exercise it vigorously, constantly, that will see you through in the overwhelming vast majority of cases. So be sure to always educate yourself on a daily basis!
But of course you knew that already, which is why you’re reading this article and had come to find it in the first place – because you were indeed doing your homework. So let’s get right down to it now!
There are two types of quick-sale real estate investors, known as retailers and dealers. Retailers buy properties and then sell them for a quick profit. It is this category of real estate investor that needs to have a substantial amount of cash for a down payment and a reasonably good credit score.
Dealers, on the other hand, buy and sell contracts, not the properties themselves. They scour for bargains and sign purchase contracts with sellers. Dealers then sell these purchase contracts to retailers at a mark-up – their profit. Now you do need some money to make money, a business truism that holds here as elsewhere, but if you’re good you can turn over the contract for a quick one to three thousand dollars without ever even taking possession of the deed!
You can even be a so-called private agent, which operates along the same lines except that what’s turned over isn’t a property or a contract but the information on properties or contracts. A private agent reconnoiters for retailers and dealers. Private agents do the hard grunt work, gathering any detail that might help, information on everything from unpaid liens on the property to any seller divorce disputes.