It’s completely up to you to spend however much or little money and time on your advertising. Bake some cookies and have a Sunday afternoon open house! People will come with their spouses and friends and they’ll tell their friends and so on. That’s called viral advertising! Pitch it as a “Choose your neighbor day” and invite your neighbors. They might have a friend or relative who’d love to move in next door.
Many novice wholesale investors think you need lots of money or excellent credit to succeed. Or, they think there are complicated classes or licensing.
There are plenty of people right now who understand a good deal when they see one. Everybody concentrates in the news about people being foreclosed on. They never talk about the fact that those same people need a place to live and are typically eager to rent a house that is in nice shape.
A second major challenge, dealing with insurance. Insurance is not a simple “get a policy” issue on a subject-to deal. Since you are not the owner of record on the mortgage, if you drop the previous owner’s policy the lender will be notified and will check why the policy has been dropped. If they discover the change of ownership, they may request full payment of the mortgage using their “Due on Sale” power. Not part of our plan in a subject-to deal. You may need to carry two policies but explore your possibilities.
Lease purchase agreement or lease option is basically a contract done for a piece of land or property. This contract is done between the buyer and seller for a fixed period, after which buyer may gain full rights and ownership of the property. Buyers also have the option to not buy the property and forfeit down payment.
Plus, in this business, you don’t always have to use your money. There is someone else out there who will partner with you. Sometimes they are Dentists, or Professionals who have taken their money and have decided they want real good returns. They will partner with you for part of the profit. This is not a bad way to go because the money flows in. And the good news is no one is looking at your credit report. No one is looking at you. And no one is putting out a large loan on your credit to bring your scores down. That’s worth something, not having to spend time filing papers for the bank or the mortgage company. There is no waiting for the money, it’s already available.
With every real estate investment there comes a contract. The contract, details both you, and the seller rights and agreed terms and conditions. If any part of this buyer seller relationship defaults on the contract, you can usually recover the money or deposit paid by law. The laws of the land differ from country to country, so this is also another reason for tip number one above.
An internship can be taken. Being an intern at a well-respected company can have a significant positive impact on the opinions of potential future employers. You will gain practical knowledge that one cannot be taught in a school. It is also a good way to have more contacts in the real estate industry.