They say that those who can adapt to any environment survive. When it comes to real estate investing, only those who know how to change their strategy will survive a severe test like a recession. This is why real estate investors are changing their positions and redirecting capital. The way to go today – at a time when the economy has not yet fully recovered from the recession – is short-term real estate investing.
These are investment methods that produce returns much faster than the conventional buy-and-hold method, where investors buy properties and depreciate them before selling at a much higher price. Real estate appreciates over the years, so you are sure to reap huge profits over time. But if you don’t have time, there are “quick money” investment strategies that are effective in today’s market conditions.
The most common short-term methods of investing in real estate today are remodeling and wholesaling homes. Home remodeling, also known as “fix and flip,” is the process of buying cheap real estate, fixing it up, and selling it for a profit. This business is thriving today due to relatively low real estate prices.
Rehabbers can fix up and flip more properties because they can buy homes today at bargain prices. Their favorite projects are known as home renovations or special craftsman projects. This is a cheap property that needs renovation. Some of them were neglected by their owners for years, while others were sold due to financial difficulties.
In addition to renovating homes, rehabbers also buy REO homes. This is property that was taken by creditors from owners who owed them mortgages and other financial obligations. The REO homes have already been foreclosed on, so all liens and claims against them have been removed. This further reduces their prices. Those who invest in real estate today can buy real estate for pennies on the dollar.
A rehabilitation project usually takes several weeks to several months. The time frame depends on the repairs needed and how long it will take you to sell the property. When it comes to profits, a salary of $30,000 at the end of each project is very common.
Meanwhile, wholesale houses only last a few days. This is the placement of property under a contract to purchase it. You will then look for a buyer and enter into a contract with them. U wholesale houses, salaries of at least $5,000 are essential. Since you don’t need to buy real estate, you don’t need a lot of capital in this business.