Short term investing is all about fast actions and quick closings.
Having automated systems and a team of professionals in place
to carry out your exit strategies will make your business a success.
Short term investing is attractive because its quick and easy
with reduced liability, responsibilities and duties. Plus you can get
instant cash flow and other pay outs.
Investors are continuously seeking out new cash flow strategies.
New investors need it for start up and old pros to cover day to day operations.
Most investors do not think about it but monitor the market to take advantage of opportunities, waves, trends and special influences that will indicate new methods for short term investing.
Foreclosures are a current short term investing opportunity. Many think that foreclosures are not a fad but something that will be here forever. That's half true, in the future, the number of foreclosures will decrease but they will never completely disappear. In the mean time, jump on them hard.
Beat the banks, grab foreclosures and bank owned REOs.
And you can get them in bulk REO packages, vacant and ready to go with clean and clear title.
Wholesale properties back to other investors with assignments and simultaneous closings.
Look for the ugly properties with extremely low prices or ones that have been on the market for over 60 days.
When house flipping, you have less liability since you'll never take possession of the property. You're only handling the property for a small period of time or not handling it at all but assigning the contract. However, have your end buyer lined up and act quickly due to market fluctuation, and the small profit margins on flips or your profits can be gone just as quickly as they appeared.
Another creative way to make money with short term investing is through the financing of the real estate. Cash flow notes are as easy as offering owner financing then flipping the cash flow note to a mortgage note buyer for a quick profit. You will get several pay outs.
1. You make money on the sale of the property,
2. You make money on the financing of the property, and
3. You make money when selling of the cash flow note.
1,2,3, and you're out.
Its all about timing, getting in and out of the deal quick.
Transactional funding is available for 24 hours to 1 week.
Also known as flip funding, double close funding, bridge funding, back-to-back funding, simultaneous funding, and gap funding. It allows you to close on properties quickly and without a single cent of your own money. It also bypasses the tedious loan process, and your credit doesn't play a roll in the qualification process.
Usually this type of loan is used to fund A-B side of a REO, wholesale transaction, or a short sale. The most common stipulation is for your buyer to be lined up to purchase the property from you immediately after you close the A-B part of the sale. Funding usually covers ALL cost including closing, and fees are taken from the sale price. So nothing out of pocket.
Hard Money is for up to 1 year and the property must qualify.
You'll be able to get hard money funds for about 65% of the ARV (after repaired value). It'll cost you a few points and may contain a prepayment penalty.
Self directed IRAs are a good option for quickly funding your properties. And the funds do not need to come from your account, they can be from any one's account.
However, our most favorite financing of all is private money.
Set it up and have it waiting in advance. Then all you need to do is make a phone call and send some paperwork. Short term investing only works if you are fast. Equate it to the race car running down the track. Only the one that starts, runs the race, and finishes first, wins. Its time to get your game on and become the winner.