If you are looking for a great side job with the potential to earn additional income without special training or skills, consider getting involved in real estate investing. You can soon learn how to buy and rehab properties in need of repair and then sell them for profit, usually within a relatively short period of time. Here are the basics you need to know.
You will need access to cash from sources like a home equity line of credit, private funds, lender funds, or personal cash. Become pre-certified by a lender for a home mortgage to be able to close the deal when the time comes.
When working with a real estate wholesaler, you receive leads about new properties on the market that fit your preferred criteria and price range. You can find real estate investor groups with wholesalers and realtors who are members on social media like Facebook and job sites such as Craigslist. This is a great way to learn about available properties for potential rehabbing.
Find a reliable and knowledgeable contractor who can perform a property inspection. For a reasonable fee, you will get a detailed report about the property’s weaknesses that need to be addressed, especially in areas like plumbing, electrical wiring, HVAC, the foundation and structure, as well as the roof, windows, etc. The report will help you decide if you can afford to make needed repairs and still earn a profit when the property is resold.
By checking neighborhood comps with a realtor or a website like Zillow or Trulia, you can decide whether the property you’re considering can be affordably updated or repaired and still turn a profit when sold. If there is a profit margin, that will help you to decide the new asking price for the property once repairs are done.
Consult a title bureau or ask a realtor to help you find one. The title agency will inform you of any property liens that must be paid to claim title. You can then make the decision whether to pay any liens and rehab the place to still earn a profit.
Renovating a home to make it attractive and functional is a great endeavor. The payoff that comes with a successful deal also feels terrific.