Return from real estate or return paper?

Reversing real estate is not for everyone, but it&39;s the fastest way to make money in real estate. Almost everyone has heard of someone who buys a "dilapidated" house at a bargain price, well below the market value, repairing it and selling it at a fair price. Switching a "fixer-top" is definitely a way to generate a reasonably quick profit. I know people who do it this way, but they are more interested in entrepreneurs and renovation than in the mindset of investors.

Some of these "superior" properties require major repairs and will involve electrical work, carpentry, etc. If the investor intervenes and does all or part of this work, you can make enough profits there. the labor required, the profits could be quickly exhausted. For these types of real estate investments, the purchase price must be significantly reduced and should normally be somewhere at the foreclosure stage.

For the person who is in the spirit of investing rather than being in the home improvement business, then returning a property will only reverse the property&39;s paper contract without even taking possession of it. You can return by entering into an agreement to purchase a property and then selling the contract to another investor before the end of the escrow.

The use of this technique will not even require you to put your name on the title. Profits will generally be lower than those of the big investor, but will involve much less work and the whole process will be much faster. An informed investor would not be happy to make a profit of a few thousand dollars for a few months of renovations, but an investor who could simply reverse a contract for a few hours or a few days of work would be.

Avoid disclosing your profits to the new buyer by using a double fence.

After you&39;ve made a good deal and reversed a lucrative profit contract, you may not want all these details to be revealed to your buyer. The solution is a double fence, transferring the property to you at first and then resold immediately to the same lawyer only one hour later to your buyer.

There is a disadvantage here: it is a double set of closing costs. You will have to stick to the question of whether it is worth it or not. In addition, you can use a title insurance company for actual closings. For the issuance of the title insurance policy, the title insurance company will prepare the closing documents and close the transaction, generally at no additional cost.