How to make $1000 to $10,000 with no investment...

[Matt H]

I know that a lot of you are new to real estate investing. And I know that sometimes doing "no money down deals" can seem intimidating at first. And then if you're credit doesn't check out, or you can't get a mortgage you could run into difficulty.

So here is another easy way to make up to 10k per transaction with no investment required other than your time:

1) You find a bunch of real estate clubs in your town or city. Find out when they meet. Then attend a meeting so see what it's like. See if they allow for members to talk about properties they have for sale, or if there's a chance for you to do that in the club.

2) Find some online forums for real estate investing in your state. Locate the key sections of your newspaper to advertise real estate investment opportunities in. And get yourself prepared by finding as many key avenues as possible.

3) Then here's what you do. Go out either with a realtor, or on your own and find properties that make for excellent rental properties. Or ones that could easily be turned into more than just one unit. Such as a house that has a separate entry into the basement. A side by side duplex that could be turned into four units. Or even a small apartment building.

4) Next, get an offer in and get it pending. You're not actually going to buy it. So you want to get as long as a condition removal date as possible. Just make it subject to financing. That's all you need. Ask for at minimum 1 month to remove that condition.

5) Then on the contract write: "Hulk Hogan or Nominee". Be sure to write "or Nominee". If the seller asks why, just say make up something like "well in case I need to involve a partner as a back up". That way you can sell that contract to a third party. (check your local state laws to make sure there's no conflict with this). In most places this is legal.

6) You need to find rental properties that will actually cash flow. If they won't cash flow then those contracts wont' be worth anything to a seasoned REI. So get a few of those. Anything ranging from a single family house, up to an apartment building. And infact apartment buildings might be the ideal thing for this.

7) So lets say you get an a small walk up apartment building in "pending" status. The seller has accepted your offer. Now you have say 1 or 2 months to remove conditions. So then you take that sales contract and all the information and proforma on the building and you begin to advertise it. Advertise in your paper, on the online forums, but especially do some major networking at the REI clubs in your area.

8) You're goal is to sell the contract. You can do this because you put the buyers name as "Hulk Hogan and or Nominee". That means you can assign that contract to a third party. Typically you can sell these kinds of contracts for about 1% to 3% of the asking price. So on a million dollar building that's at least $10,000 dollars profit. And all you had to do was a little searching and bargaining.

9) Best case scenario is that you tie up an apartment building worth 1m and then sell the contract for $10,000. Worst case scenario is that for some reason you can't find an assignee so you do not remove conditions. That means that after the condition date lapses then the property simply goes up for sale again and the contract you have becomes null and void.

10) Also if it's coming close to condition removal date, ask the seller for an "extension". Write up an amendment to the contract giving you more time to remove conditions. That way you can keep trying to sell that contract for a little while longer. This is quite typical when selling a property to ask for an extension.

So anyway this is one very easy way to raise some capital and get your foot in the door when your just starting out. The risk in doing this is practically none existent so you can forget about worrying. And eventually once you've raised some money doing this you can start to make some serious offers of your own.