How To Make Cash FAST In Real Estate In The Next 30 Days

The most common question I get is, “How do I make cash right now in real estate?  Oh, and by the way, I have no money to put down and my credit is horrible!”

Ok, not impossible, but it will take hard work, dedication, and learning a few tricks I have up my sleeve.

Here are 7 creative techniques for generating cash quickly without starting from much.

 

1. The Wholesale Fixer

Summary:  Find a fixer property that needs a lot of work, but that is priced accordingly.  Get it under contract for 70% of ARV minus repairs, then flip to another investor

 

Where to Find: MLS, Probates, Free and Clear Owners

 

What to Watch Out For: Banks won’t let you assign their purchase contract.

 

2. Wholesale Rental

Summary: Find a property that would make a good rental, and flip to another landlord. Usually, a “starter” home that’s on the cheaper side and doesn’t need much more than carpet and paint to make it a fine rental property.

Where to Find: MLS, other landlords

 

What to Watch Out For: Sewer line, roof or a structural problem will push repair costs too high to make it worthwhile for a rental.

 

3. Sandwich Lease/Option

Summary: Lease a property from the owner with an option to buy, then sublease to a tenant, giving him an option to buy for a higher price. When a tenant is ready to buy from you, exercise your option to buy from the seller, and double-close the deal to the tenant.

 

Where to Find: Properties for rent, listed as “For sale or rent”.

 

#1 Thing to Watch Out For: Don’t make payments directly to the seller and trust him to make it to his bank.  Instead, use a third-party escrow company to service payments.

 

4. Subject to, Lease/Option

Summary: Have seller who is highly motivated and little equity deed his property to you, subject to the existing mortgage.  Then, lease to a tenant with an option to buy.  More favorable than #3, because if you have title to the property for more than 12 months before tenant buys, the profit is a long-term capital gain, which means lower tax rate.

Where to Find:  Properties in default or in foreclosure.  May require you to make up some back payments, though.

What to Watch Out For:  Seller has undisclosed liens on the property. Do a title search before proceeding.

 

5. Wrap/Rewrap

Summary: Buy on a wraparound installment land contract, mirroring the seller’s loan balance and payment terms. Then, resell on a wraparound installment land contract, marking up the price and interest rate.

Where to Find: FSBO seller who has very little equity or advertising “for sale or rent”.

What to Watch Out For: Don’t make payments directly to the seller and trust him to make it to his bank.  Instead, use a third-party escrow company to service payments.

 

6. Flip a Mobile Home

Summary: Buy one cheap, fix it up, sell for cash.  Works best on older homes that are cheap, because few people have the cash to buy a $40k mobile, and few banks are lending in this arena.

Where to Find: Put fliers out in mobile home parks

#1 Thing to Watch Out For: Your buyer may not qualify for the mobile home park lease!

 

7. Buy, Wrap and Sell Note on Mobile

Summary: Same as above, except sell on terms at a much higher price, take back a note.  Then, sell the note for a discount for cash to another investor.

Where to Find: Put fliers out in mobile home parks

What to Watch Out For: Your buyer may not qualify for the mobile home park lease!

 

 

WILLIAM BRONCHICK, ESQ.

Reprinted by Permission. © 2018 Toprealestateexpert.com All Rights Reserved. William (Bill) Bronchick is a best selling author, attorney, investor and mentor. Visit www.legalwiz.com or call 1-888-587-3253. The author, CEO of Legalwiz Publications, is a nationally known attorney, author, entrepreneur, mentor and speaker. He has been practicing law since 1990, and has been involved in over 700 transactions.

 

 

 

 

 

Back to The Metro Blog >

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Doing Your First Deal by Marcus Lawson

July 23, 2019

1/10
Please reload

Recent Posts
Please reload

Search By Tags