Getting Rich Selling Real Estate You Don't Own (Part 1)
How can you ‘sell’ something if you don’t own it first? What could be better than ‘controlling’ a Real Estate without buying that real estate? Learn how to buy and Think Like a Tycoon with our book on this subject.
Who makes money in Real Estate?
The Seller makes money. The Real Estate agent, Bank, Appraiser, Lawyer, Insurance Agent, and even the City, County and State (tax collectors) make money. The buyer pays (even if the 'lucky' buyer buys a distressed fixer upper for no money down, at the start of any deal the buyer (unless he is very clever) pays something. His profits, which end up being the biggest of all, are deferred).
Each year, people across this country who want to 'Get Rich Quick in Real Estate' fall for the same old sucker-pitch. They buy courses, tapes, manuals and books on 'How To' buy distressed properties, buy with No Money Down, buy tax lien properties or buy fixer uppers. Then, in regular cycles of about 10 years each, the markets become too crowded. It starts with everybody and their dog making money from ever rising prices. Then all at once, the bubble bursts. Values often sink below the mortgage loan amount, and equity is wiped out. The (financially) strong or those who bought at the start of the boom hold on for an inevitable recovery. The weak hands are foreclosed upon. However, those who bought cheap and are not highly leveraged, can usually rent and hold on for a recovery. Unless they made the mistake of buying in a bad location like say, Detroit. Real estate you buy must be in a great location where there are jobs, or other reasons for strong demand.
Real Estate buyers have to make the monthly payments, pay the interest & principal; pay the taxes and assessments; pay the cost of upkeep and maintenance. When they decide to sell usually pay a (6%?) commission to a local Real Estate agent. Of course they can sell directly to a new buyer.
But here is a risk-free way to make money in real estate without investing anything...TBC