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Making Short-Term Investments in Property

You hope to ensure a healthy and financially secure retirement so you want to make short-term investments in property. First of all, you’re not even sure if there are short-term methods of real estate investing or REI.

By: Trevor C. Howell
Category: Real Estate
Posted: Mar 08, 2010
Updated: Mar 08, 2010
Views: 61


You hope to ensure a healthy and financially secure retirement so you want to make short-term investments in property. First of all, you’re not even sure if there are short-term methods of real estate investing or REI. Second, the money you have is just around $50,000 and you fell like that won’t be enough to buy a rental property. To answer your questions quickly, yes, there are short-term REI methods and they are sizzling in today’s market. And yes, that amount of money is sufficient to start your own real estate business.

Although real estate is perceived as a long-term commitment, there are some businesses in this industry that only last up to a few months. Some of them, unbelievably, only last a few days. Those few days are not a failed business. It’s just that their nature is really buying and selling property fast. Wholesaling houses, for example, can be done in a week. On transaction sometimes yields $10,000 so that’s an additional $10,000 every week if you do it successfully.

To wholesale houses, you won’t even need to withdraw your $50,000 savings from the bank. You won’t need that much capital to start in this business. Making investments in property through wholesaling houses will require you to make a small deposit to the home owner but a $10 deposit will often do. Some investors use $250, others $100. It all depends on how much you and the home owner agreed on. The deposit is necessary to place the property under contract. Once under contract, you will be able to market the property to prospective buyers. Add your profit amount of choice when advertising it. For example, if you want $10,000 for a property you placed under contract as a $45,000 house, indicate to buyers that you are selling it for $55,000. When you find a buyer, you can leave closing work to a title company, which will then give you a check for your efforts.

Another way of making short term investments in property is rehabbing houses. In this business, you will need the $50,000 you have in the bank. That will be enough to buy a cheap property. Don’t worry if the house has roof or HVAC issues. You will repair these problems and resell the property for a much higher price afterward. If you don’t want to do the job yourself, you can hire a contractor. You will need additional money for repairs and other expenses though. You can go to a bank or a hard money lender for additional capital.

For more information on anything REI, simply got to REIWired.com. The website offers education for would-be investors.

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