It had always been a fascinating thing to walk into a home that was under construction, or a house that was being renovated. Growing up, my dad had our home built. Every time we went to visit the house, there was always something being drilled, or cut, or hammered. It was an amazing thing to witness.
But a year later, I got to witness something even more amazing -- the finished product, and it was glorious.
I had never really taken real estate seriously, until I graduated college. I made several career-path changes since I graduated, and when I came towards the end of my first year in seminary, I began thinking about real estate. I started looking into getting my realtor's license but discovered that the laws had changed in recent years, and that I had to do more courses now then what was required before. The courses would take time and money. Besides, I knew being a real estate agent did not guarantee a steady annual income -- it was a career people did on the side, I thought.
So I happened to see an advertisement on Facebook for a seminar about real estate in my area, and I attended. At the seminar, my eyes were opened. I learned about real estate investing, particularly wholesaling and rehabbing, and learned that I could do all of that -- without a real estate license. You would need a license to access the MLS (Multiple Listing Service), which is a regulated service that lists homes and their details when they're selling. Getting a license will make your life easier, since you won't have to depend on realtors to track deals on the MLS for you. Eventually, I can see myself getting the license.
The basic premise of short-term real estate investing begins with finding a motivated seller and/or a distressed property. You meet with the motivated seller, someone who not just wants to sell their house, but someone who absolutely has to sell their home, thereby being willing to sell it at a significant discount to you. With wholesaling, you don't buy the property itself -- you put it under contract, meaning that you simply get the right to purchase it at an agreed upon price. So you meet with the seller, work your magic, and settle on a number.
If you're wanting to flip the property quickly, you wholesale. So you find another investor who is either a landlord, or a rehabber, and selling the contract to them, at a higher price. The difference between the number you agreed upon with the seller and the number you agreed upon with your buyer is what you get to keep, and can label as your wholesaling fee. This could range anywhere between $500 to $30,000. It's not a bad deal, right?
So having incorporated Green Clover Properties LLC, I am getting ready to make my first deals. When January 1st, 2016 came around, I made a new year's resolution to flip my first home in 2016. Let me tell you, now that I have my business set up, and as I'm getting the right relationships in place, I am confident that I will do more than just 1 deal this year.
If you're interested in getting into real estate, start looking for real estate seminars, attend REIA (Real Estate Investors Association) meetings, or contact me to get some references to some programs you can do to learn the art of real estate investing. It's easier than you think, but you should be willing to put in the work as well, and at the end, it'll be worth it.