How to Make Cash Fast in Real Estate

The most common question I get is, “How do I make

cash right now in real estate? Oh, and by the way, I

have no money to put down and my credit is

horrible!”Ok, not impossible, but it will take hard work,

dedication, and learning a few tricks I have up my sleeve.

Here’s creative techniques for generating cash quickly

without starting from much.

• Summary: Find a fixer property that needs a lot of work, but that is priced accordingly. Get it under contract for 70% of ARV less repairs, then flip to another investor

• Where to Find: MLS, Probates, Free and Clear Owners

• What to Watch Out For: Banks won’t let you assign their purchase contract.

• Summary: Find a property that would make a good rental, and flip to another landlord. Usually a “starter” home that’s on the cheaper side and doesn’t need much more than carpet and paint to make it a fine rental property.

• Where to Find: MLS, other landlords

• What to Watch Out For: Sewer line, roof or structural problem will push repair costs too high to make it worthwhile for a rental.

Lease a property from the owner with an option to buy, then

sublease to a tenant, giving him an option to buy for a higher

price. When tenant is ready to buy from you, exercise your

option to buy from the seller, and double-close the deal to the

tenant.Don’t make payments directly to seller and trust him to

make it to his bank. Instead use a third-party escrow company

to service payments.

• Summary: Have seller who is highly motivated and little equity deed his

property to you, subject to the existing mortgage. Then, lease to tenant

with option to buy. More favorable than #3, because if you have title to

the property for more than 12 months before tenant buys, the profit is a

long-term capital gain, which means lower tax rate.

• Where to Find: Properties in default or in foreclosure. May require you

to make up some back payments, though.

• What to Watch Out For: Seller has undisclosed liens on the property. Do

a title search before proceeding.

• Summary: Buy on a wraparound installment land contract,mirroring the seller’s loan balance and payment terms. Then, resellon a wraparound installment land contract, marking up the priceand interest rate.

• Where to Find: FSBO seller who has very little equity oradvertising “for sale or rent”.

• What to Watch Out For: Don’t make payments directly to sellerand trust him to make it to his bank. Instead use a third-partyescrow company to service payments.

• Summary: Buy one cheap, fix it up, sell for cash. Works best

on older homes that are cheap, because few people have the

cash to buy a $40k mobile, and few banks are lending in this

arena.

• Where to Find: Put fliers out in mobile home parks

• #1 Thing to Watch Out For: Your buyer may not qualify for

the mobile home park lease!

William Bronchick, Host of Legalwiz.com is a

nationally-known attorney, author,

entrepreneur, and public speaker.

Mr. Bronchick has been practicing law and

investing in real estate since the early 90’s,

having been involved thousands of real

estate transactions. He has trained countless

people all over the Country to become

financially successful, speaking to audiences

of as many as 16,000 at mega-events.

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Thank you!