/biz/ - Business & Finance

>>55546464
>>55546481
>they thought they could just "get into real estate" easy as fuck because they watch TV about it.
Many such cases. If you're trying to do the actual renovation side of things first and you have zero connections to contractors or a firm understanding of ARV calculation/Repair cost before signing a contract for the house, you're just begging to be fucked and lose your money. The smart way to get into real estate is wholesaling - contract flipping. The goal is to find off market, distressed homes to put under contract with an assignment clause along with an inspection period clause that allows you to cancel the contract if the house is a total piece of shit beyond what you expected, and then you assign that contract to a cash buyer for an assignment fee. THEY do the renovation and then flip the house while you get a piece of the equity. You can expect a $10k-$30k assignment fee depending on the price you negotiated for the property. It's all handled through a title agency/escrow, you just receive your assignment fee upon closing as part of the entire deal. The only money you've put into this is an earnest money deposit ($1000 or less typically) and maybe some inspection costs. You're getting paid because you're the guy making the deal possible and the contractor/home flipper doesn't have to put in the groundwork to find workable homes. And they're still getting it at a discount compared to if they tried to buy it through a realtor. You don't need a real estate license to do this aside from Oklahoma/Illinois -even in those states, there's a process do do this without a license but you'd need more capital up front for a double close scenario.

Once you have a network of cash buyers, title agencies, inspectors, and contractors you've been dealing with for the purpose of wholesaling, you start deciding to keep certain homes that you've put under contract and then tap into your network that you've already built instead of just hoping for the best with