Day 1: You don't have to own a property to profit from it
However, that doesn't mean that you need excellent credit and a surplus of cash to get started in real estate. Here are some strategies for financially-constrained aspiring investors to begin generating real estate cash flow.
There are two types of quick-sale real estate investors: Retailers and dealers. Retailers buy properties outright and sell them for a quick profit. Their risk is highest, but so is their potential reward. Retailers typically need substantial cash for a down payment and at least decent credit.
Dealers, by contrast, buy and sell contracts, not properties. They find bargain properties and sign purchase contracts with their sellers. Dealers then sell these purchase contracts to retailers, making a solid profit in the process. This is known as "assignment of contract."
Usually, the only cash required is the earnest money to secure the deal. A good dealer can then flip the contract for a quick $1,000 to $3,000 without ever taking possession of the deed.
That is the end of our 1st day lesson. So do you learn something today? I hope you do. Please stay tune for our lesson tomorrow.