When you're starting out, you have very little time and less money.
One option, therefore, is to flip your deal for a quick profit.
When I say flip, I mean you put a property under contract, close on it, and immediately sell it to another party to realize your profits.
To flip a property, you must be buying the property under market value and you then resell it at market value to another investor.
Why would people sell a property to you below the market value?
There are many reasons:
- Inherited a property they do not want
- Foreclosure
- Bankruptcy
- Burnt Out Landlord
- Profits falling
- Estate sale
- Trading up to bigger property
- Retirement
- Need cash flow
- IRS tax debt
People sell below market value for these reasons and more. As you can understand by now, I want systems in place to attract these motivated sellers continuously. I discuss those systems in more detail in these videos.
Let's say you find a motivated seller of a three-family property. It's worth $375,000 but the seller needs to get out quickly and just wants what's owed on the mortgage.
(It happens.)
The mortgage amount is $311,000. You agree to purchase the property for $311,000.
You could make your profit on this property in two ways:
- You could assign the property to another investor and get an assignment fee, or
- You could close on the property and immediately put it back on the market to resell.
The RE Mentor Team has been successfully investing in Multi-Family Real Estate for over 22 years. Some of our experienced investors have bought, sold and/or holds over 8,000 units. RE Mentor has been teaching this system for anyone who wants to discover it's secrets to create lasting cash flow and wealth, for the last fourteen years.
Head over here and start your training immediately!