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How to Make Cash FAST in Real Estate in the Next 30 Days

The most common question I get is, “How do I make cash right now in real estate?  Oh, and by the way, I have no money to put down and my credit is horrible!”

Ok, not impossible, but it will take hard work, dedication, and learning a few tricks I have up my sleeve.

Here are 7 creative techniques for generating cash quickly without starting from much.

1. The Wholesale Fixer

Summary:  Find a fixer property that needs a lot of work, but that is priced accordingly.  Get it under contract for 70% of ARV minus repairs, then flip to another investor

Where to Find: MLS, Probates, Free and Clear Owners

What to Watch Out For: Banks won’t let you assign their purchase contract.

2. Wholesale Rental

Summary: Find a property that would make a good rental, and flip to another landlord. Usually, a “starter” home that’s on the cheaper side and doesn’t need much more than carpet and paint to make it a fine rental property.

Where to Find: MLS, other landlords

What to Watch Out For: Sewer line, roof or a structural problem will push repair costs too high to make it worthwhile for a rental.

3. Sandwich Lease/Option

Summary: Lease a property from the owner with an option to buy, then sublease to a tenant, giving him an option to buy for a higher price. When a tenant is ready to buy from you, exercise your option to buy from the seller, and double-close the deal to the tenant.

Where to Find: Properties for rent, listed as “For sale or rent”.

#1 Thing to Watch Out For: Don’t make payments directly to the seller and trust him to make it to his bank.  Instead, use a third-party escrow company to service payments.

4. Subject to, Lease/Option

Summary: Have seller who is highly motivated and little equity deed his property to you, subject to the existing mortgage.  Then, lease to a tenant with an option to buy.  More favorable than #3, because if you have title to the property for more than 12 months before tenant buys, the profit is a long-term capital gain, which means lower tax rate.

Where to Find:  Properties in default or in foreclosure.  May require you to make up some back payments, though.

What to Watch Out For:  Seller has undisclosed liens on the property. Do a title search before proceeding.

5. Wrap/Rewrap

Summary: Buy on a wraparound installment land contract, mirroring the seller’s loan balance and payment terms. Then, resell on a wraparound installment land contract, marking up the price and interest rate.

Where to Find: FSBO seller who has very little equity or advertising “for sale or rent”.

What to Watch Out For: Don’t make payments directly to the seller and trust him to make it to his bank.  Instead, use a third-party escrow company to service payments.

6. Flip a Mobile Home

Summary: Buy one cheap, fix it up, sell for cash.  Works best on older homes that are cheap, because few people have the cash to buy a $40k mobile, and few banks are lending in this arena.

Where to Find: Put fliers out in mobile home parks

#1 Thing to Watch Out For: Your buyer may not qualify for the mobile home park lease!

7. Buy, Wrap and Sell Note on Mobile

Summary: Same as above, except sell on terms at a much higher price, take back a note.  Then, sell the note for a discount for cash to another investor.

Where to Find: Put fliers out in mobile home parks

What to Watch Out For: Your buyer may not qualify for the mobile home park lease!

Here is a short video to help you out:

https://youtu.be/XXsGYUeEHBg

 

About the Author Attorney William Bronchick

Attorney William ("Bill") Bronchick, host of Legalwiz.com, has authored six best-selling books and is sought nationwide for his 25+ years of real estate and legal knowledge. He has been interviewed by numerous media outlets, such as CNBC, TIME Magazine, USA Today, Investor Business Daily, Forbes, and the LA Times, to name a few. William Bronchick is the co-founder and past President of the Colorado Association of Real Estate Investors and the Executive Director and founder of the College of American Real Estate Investors. Click on the "About" link above for more information on William Bronchick.

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