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Real Estate Investment Strategies By: Ryan G. Wright – CEO DoHardMoney.com Here's a question that has come in a few times over the last couple weeks that I am sure is on the mind of many people reading this blog. "With all the different real estate investment strategies (wholesale, short sale, rehab and flip, buy and hold, etc) what strategy generates the biggest payday in the shortest amount of time?" Let me start off by saying that I completely understand why you are asking this question. You need to get the most bang for your buck so you can accomplish your financial goals and you don't want to waste your time spinning your wheels doing things that won't pay off quickly. So let's examine your list and help you focus in on the strategy that is best for you. First off, how about we just eliminate buy and hold. There's no way that you'll get a huge payoff in the short term on buy and hold. You can generate a nice monthly income stream - IF you buy a property free and clear and can get tenants in it right away. Assuming that you are in a financial pinch, I'd recommend adding buy and hold properties to your portfolio after getting your finances in order using one or more of the other real estate investment strategies we'll discuss here. As a side note, you should also use a property management firm when you get into buy and holds - it will save you tons of time and headaches! With the rest of your list, they all can have huge payoffs in short periods of time if the right conditions are met. For the rest of this article, I'm going to lay out those conditions and give you the pros and cons of each strategy. Wholesales - how you make your money on a wholesale is through the spread. You have to be able to buy a property way below market value and quickly turn it over to another investor (typically a rehabber) for more than what you bought the property for. The pros are the following: 1) If you do it right, you can make five figure and sometimes six figure checks 2) You don't have to mess with rehabbing 3) Can be very quick Here's the cons: 1) You won't be able to make a huge spread if you are selling to an experienced investor who knows how to value properties 2) You have to have an end buyer lined up before you even purchase the property ©2012 – DoHardMoney.com – All Rights Reserved http://www.dohardmoney.com


3) It's extremely hard to get financing for wholesale deals 4) You should have at least $20,000 of your own money saved up to cover potential holding costs if you can't get the property sold fast Short Sales - with short sales you can make money in a few different ways. First you can buy the short sale to rehab and flip it. You can also buy one to turn around and re-sell it, maybe with doing some slight cosmetic work, maybe not. Here's the pros: 1) You can get some smoking deals buying short sales 2) If you are working in the luxury home market, there are some major profits to be had The cons are the following: 1) Short sales traditionally take a long time to complete. Although with some of the law changes this year, it looks like that process will be shortened and more effective than ever before. 2) Negotiating with the banks can be a real pain 3) There's a lot of competition 4) If you are playing in the higher end homes market, you are exposing yourself to big losses Rehab and Flip - This is my personal favorite as it's where I've made all my millions... What you are looking to do here is buy a home below market value, do renovations to it to bring it to a desirable condition and then re-sell it for a nice profit. The pros to this strategy are: 1) Quick turn around times. Once you know what to do and how to do it, you can easily flip a property in 3 months. 2) Large paydays. $10,000 or 10% of your sale price should be the minimum profit you have on a deal. 3) Financing is easy to get. The cons are: 1) You have to know how to find good properties. 2) You have to make sure that the rehab gets done well and on time. 3) You have to re-sell the property quickly. Please don't take this to be an exhaustive list of the pros and cons to these strategies, but I feel they are the most important ones and can help you make a decision regarding which of these real estate investment strategies fits in with what you want to accomplish. That's the great thing about investing in real estate. There's a ton of different ways that you can profit and be successful. The key is deciding on what you want to do and then taking action. Š2012 – DoHardMoney.com – All Rights Reserved http://www.dohardmoney.com


It's just like anything else in life, if you don't take action, nothing is ever going to happen for you. If you are ready to take action, I have something special for you. Getting financing is probably the most frustrating part of this business. I hear all the time from people who just can't seem to get over this hurdle. That's why I put together this weird video that will give you the #1 secret to getting 100% financing for real estate investments -regardless of your credit, job history or income. ==>Click here to see this weird video now

©2012 – DoHardMoney.com – All Rights Reserved http://www.dohardmoney.com

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