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Don’t just make a deal, construct a deal.
After more than 25 years in this business, I have learned a thing or two about how to make money in real estate. One thing I have learned is most people have a very limited understanding of the real estate process. So they think there are one or two ways to do a deal. While I certainly understand where that assertion comes from, it’s simply not true. In reality, you can be as creative as you want to be as far as how you construct real estate deals. As long as you follow the rules that exist in your state, it’s no holds barred when it comes time to create income streams from real estate.
Creative Ways to Make Money on a Real Estate Deal
So let’s get down to it. How many ways can you think of to make money on real estate deals. Not counting the traditional method of becoming a real estate agent, of course. Here are six of the easiest ways I’ve found to make money with property. Hint: Renting the property out is not on the list.
- Flip properties. Buy a property cash at a steep discount then re-sell the property for cash at a profit, but still with a discount.
- Flip contracts. Enter an agreement to buy a property at a steep discount within, say, 30 days. That gives you 30 days to find an investor to whom you can sell your stake in the contract. The investors buys the property for the asking price and you earn a few grand for facilitating the deal.
- Purchase a house the old-fashioned way. Hunt for a property that you can buy with a traditional bank loan (or a hard money loan). Rehab the house and sell it.
- Hold the paper. This is sometimes called owner financing, land contract deals, lease option, rent-to-own and purchase for deed. This is a situation where you own or have equity in a property and instead of renting the property out, you sell the property to someone and they make monthly payments directly to you for the house.
- Sell leads to realtors. Whenever you list a property for sale, you will get calls from folks who are actually looking to buy. These are leads. Once you figure out who gets your house, you can sell the rest of the leads to a real estate agent.
- Sell the leads to investors. Become a Property Hunter for GIC Deal Finders. Our Property Hunters gather information about the houses they see every day. As a Property Hunter, you find leads and submit them to us. If we make the deal, you can make up to $5,000 per deal.
How many legal, creative ways can you come up with to buy real estate? I’m always interested in the creative ways in which people construct real estate deals. Share your experiences in the comments section below or find us on Facebook.
Remember: When you buy real estate, you are not buying a home; you are buying cash flow.