Finding Your Style
I see the huge potential value in investing in real estate. I was curious how to decide which style of investing to pursue. If I were to start I would need the majority of profits to come within 8-10 months. I have decent-good credit, but little to no cash to invest. Can somebody point me to a good option, with minimized risk?
Bird-dogging, wholesaleing, and fix and flip are probibly your best bets if you need to see your returns right away. The obvious problem is finding the buyers.
Keep in mind that these types of deals are taxed as self employment income, not capital gains. Potentially over 50% of your profits could be consumed by the government.
Chris
Well, that assumes a 35% tax bracket on top of the 18% self employment taxes. Add on State and local taxes and it gets even worse. But 15% maximum long term capital gains compared to even just the SE taxes looks good...
Chris
A contract assignment for 20k does seem a bit excessive on a 160k home, but that is just my personal opinion. Anyway, it will depend on the mortgage company most of the time. They will allow or not allow assignments. Some assignments will have to be for 0 dolllars. I just found a rental for my sister and her mortgage co. (Chase) said that I could not make any money on the deal. She of course paid me out of pocket after closing.
Double closings will also depend on the mortgage co and also the title co. Some title cos dont like to do them. The mort co does not want the price of the property changing from 140 to 160k with one transaction. Kinda crazy, but that is how they are.