163. Become a millionaire with flipping real estate contracts within 1 year time
You can flip foreclosed properties and become millionaire in 5 years time or you can flip real estate contracts and become a millionaire in 1 year time!
Making money with real estate might seem like a long-term prospect, but it's not. There are ways you can take as little as $500 to $1,000 and invest it in flipping real estate contracts to make money fast.
While most people think that real estate is won by flipping traditional homes and doing the renovations yourself, the fastest money you can make in real estate involves flipping the actual contract itself. It's arbitrage. Identify the motivated sellers and cash buyers, bring them together and effectively broker the deal. It might seem odd on the first go, but once you get the hang of it, you can become a mini-mogul in the real estate industry by simply scaling out this one single strategy. It works, and it's touted by some of the world's most successful real estate investors.
There are 2 ways to flip houses or real estate contracts:
1. Buy foreclosed properties at 20-30% discount and resell them at fair value. This is a way to become millionaire in 5 years time and requires that you purchase each home (with a mortgage or not). Like a $300,000 valued house is purchased as foreclosure for $200,000 and is immediately sold for $300,000. So you make $100,000 profit. Then, you could flip 2 foreclosed properties per year (6 months to buy and sell) and you make $200,000 profit per year. Then it still takes you 5 years to become a millionaire. If you choose this option, learn as much as possible about buying foreclosed properties on the internet before you start investing. You will easily find a buyer: read my previous idea "162. Become millionaire with a real estate website in 1 year time", you post to 100+ free real estate websites the real estate properties you bought on foreclosure. You can also buy properties from distressed home sellers at huge discount, see idea "89. Make $10,000s per year – Make money by flipping properties"
2. Flip contracts of real estate agents or of direct home sellers. This is the fastest way to become millionaire in 1 year time and doesn't require capital to buy and sell each house.
You have 2 options:
a) You sign a contract with a real estate agent to promote their properties for sale on your website at 1% commission (that's fair, their commission is 3-6% per property sold). So on a $200,000 house, you have $2,000 commission.
b) You sign a contract with direct home sellers to promote their properties for sale on your website at 3-5% commission. So on a $200,000 house, you have $6,000 - $10,000 commission.
Write a contract with an attorney to be signed between a) you and the real estate agent or b) between you and the direct home seller.
Make sure there is a disclaimer that states you are not a licensed real estate broker, but are only doing promotion/marketing/advertising of their real estate propertie(s) on your website, you flip real estate contracts.
Maybe 1 in 10 real estate agents are interested and 1 in 10 direct home sellers (on 10s of millions of houses for sale, so the market is huge!).
Suppose you can promote 10 houses per month in 3 months time, then you make 10x $2,000 profit on the real estate agent deals. That's $20,000 profit per month. And you make $6,000 x 10 = $60,000 per month profit on direct home seller deals!
In 1 year time, you can promote 100 houses per month, 10x times more and you make $200,000-$600,000 per month profit!
How do you promote those properties on your website and take your commission?
Very easy! Read my previous idea "162. Become millionaire with a real estate website in 1 year time", you post to 100+ free real estate websites the real estate properties. It may cost you 1 week work time to do this job per property promoted on your website! With 50x-100x as much exposure than from one paid real estate website, you will be able to find a buyer for the house within 1-3 months time, so you can take your 1-5% commission between you and the real estate agent or between you and the direct home seller!
You can also sign a deal to promote rentals, to get a renter for real estate agent properties or for direct home sellers properties. Then a $1,000 commission can be signed.