How You Can Make Money Multiple Ways In One House House | Beginner Real Estate Investing
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In this YouTube video, the speaker discusses three exit strategies for a distressed property that can be purchased for $150,000 without using any of your own money. The first strategy is wholesaling, which involves buying and selling paper without the need for money, credit, or risk. The second strategy is fixing and flipping the property, which involves buying it, fixing it up, and selling it for a profit. The third and favorite strategy is keeping the property as a rental without using any of your own money.
The speaker emphasizes the importance of maximizing the potential of a property and not settling for just one strategy. Wholesaling is a good option for new investors or those without money or credit. The contract for the property includes a contingency that allows the buyer to get out of the contract within 14 days. During this time, the buyer can sell the contract to a real estate investor who has money, credit, and is willing to take a risk. The buyer can then assign the contract to the investor and make a standard wholesale fee of around $25,000.
The second exit strategy is fixing and flipping the property without using any of your own money. The speaker suggests using a hard money lender or private money lender to finance the purchase and repairs. Once the property is fixed up, it can be sold for a profit. The third and favorite exit strategy is keeping it as a rental without using any of your own money. The BRRRR method is used, which involves buying the property, fixing it up, and renting it out. A small local bank can be approached for a cash-out refinance of 80% of the appraised value, resulting in an infinite ROI. The importance of maximizing each deal and scaling is also highlighted.
In this YouTube video, the speaker discusses three exit strategies for a distressed property that ca