Quick money in real estate is somewhat of an oxymoron in this day and age. Just a few short years ago real estate investors, realtors and mortgage brokers were doing well in a thriving industry. Today, thousands of those professionals have been driven out of business, while thousands more struggle to make ends meet.
The ability to make quick money in real estate still exists. It is just much harder to find. In order to succeed in today's real estate market, investors must use every resource available. A lot of investors are turning to social media such as Facebook, LinkedIn, and Twitter. Most have websites or blogs. Many participate in online investing forums or community real estate clubs.
Savvy investors know there are always ways to make money in real estate by staying abreast of current market trends. Jeff Lewis, star of realty show, Flipping Out, was forced to completely alter his way of business. He made his fortune by flipping high-end luxury homes during the real estate boon. When everything went south, Lewis turned to his design background and took jobs he once felt were beneath him.
As a California real estate investor, I have altered my investing plan numerous times as we continue through a stormy and unpredictable market. For me, the key to success has been diversification.
Foreclosure homes used to be an easy way to buy discount properties. Today, it is hard to find good deals because of declining property values and over-financed homes. Houses sold at foreclosure auctions often have two or three mortgage notes, along with creditor and tax liens. Add in the cost of required repairs and profits fly out the window.
Today, many investors are turning to bank owned foreclosures. The primary difference with bank owned properties vs. foreclosure homes is homes owned by banks are sold with a clean title. Investors present their offer, close the sale, and take immediate possession.
Bank foreclosures are properties that did not sell at auction. They are sold in 'as-is' condition and are not covered under any warranty. Bank owned properties may qualify for Neighborhood Stabilization Program grants offered through HUD.
Qualified investors can obtain up to five NSP grants. Funds must be used to buy, fix, and sell foreclosure properties. Available funds vary by state. Individuals interested in the program can obtain details at HudNSPHelp.info.
One option to further capitalize on NSP grants is to invest in Fannie Mae foreclosures available through Home Path Mortgage. This program can be a good choice for investors with less than perfect credit and those who cannot afford large down payments.
Home Path down payment requirements are 3-percent. Funds can be obtained through down payment assistance such as a gift or loan. Many Home Path properties are priced well below market value and can be used for house flipping or as long-term investment property.
Investing in probate property sometimes offers the opportunity to make quick money in real estate. Probate property refers to real estate owned by a person who has died. Probate is required to settle decedent estates and distribute inheritance property. The probate process can be costly to estates holding real estate with a mortgage note.
Estate administrators can sell probate property to eliminate financial burden. Heirs will often sell probate real estate below market value to eliminate the debt. Buying probate property requires a bit of detective work by searching public records, but can result in substantial profit.
Some investors prefer to buy and sell real estate notes and land contracts. Many act as funding sources and buy partial notes when sellers require lump sum payment. It is not uncommon to earn 20- to 40-percent by providing advanced funds in exchange for property rights.
These are just a few ways to make quick money in real estate. Investors who want to develop a profitable portfolio during an economic recession must commit to staying abreast of market trends and building a solid network of real estate professionals and clients. Otherwise, they could quickly become another statistic.