About this episode
Simplified Explanation: Real Estate is the buying and selling of real property, or buildings and land that have a monetary value to another party. If you can find deals and buy a piece of property, like a house, and you can fix it up or hold on to it long enough, the value almost always increases.
Real Life: Real Estate is a very large subject. So large that we have multiple books being written on the subject: Debt Free Flipper and more. Any of these will give you the experience of one of these avenues of real estate. For this game and book, we are focusing on residential because that is the most used form of real estate investing you will find by the average consumer. Be aware that there are many more avenues you may go.
To start off, allow me to introduce a little of each of these avenues, from least expensive to the very expensive real estate ventures you can go into, then teach you how they works.
Wholesale – This is to acquire land, by contract, from one party and sell it to another party, where you never need to pay your own money, so you don’t need any money in order to begin selling real estate. The process is simple, you find a buyer and what they are looking for, potentially you should be looking for a dozen or more buyers, you then find a property they listed as something they would buy and contract with the owner to sell their property to an agreed upon amount. Then, contact your buyer and, after increasing the price by $5,000 - $10,000, you secure the buyer. You then write a contract to buy the property from the original owner and you assign it to the buyer that you found. In the end, they bought a deal of a house, while you made $10,000 on the side. Everyone wins. Be careful because these contracts are binding and if your buyer doesn’t buy the house, you ended up buying it from the original owner. Again, the benefit is that you can get into real estate without any money to do so.
Land – This is the least expensive property you can buy because there are no buildings built on it and so raw land can be used for so many different purposes. The buyer will be expected to develop the land themselves. These deals normally take longer to find a buyer because people are normally not looking to build on a property but instead buy something they can move right into.
Rental Cycling (Renting out other’s homes) – Did you know that you don’t need to own a home or apartment in order to make money. You just need to rent out a property that you can sublease to others. Whether you want to stay there or not, you can sub lease a bedroom from the apartment or house and they will help you pay the rent. This takes a smaller amount of money, but includes first and last month rent, and a security deposit, and you can sometimes make money from those you allow to stay in your home. Now, make sure that it is okay with the landlord, and that it is spelled out in the contract that this is allowed, o
