Creating a Real Estate Empire without an Initial Deposit

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Everyone knows that the way to get rich is to own Real Estate - but that costs money. People do not just hand you their Good Quality homes for no money. The problem is when you have No Money, Beggars Cannot Be Choosers.

With the development of what is known as Real Estate Wholesaling it is popular to tout No Money Down Strategies to Buying Properties. In most instances this does not occur. The RE Wholesalers do not end up owning any of the properties they contract to buy.

Instead what they do is actually assign the contracts they have with Home Sellers to Cash Buyers, Investors who have the money necessary to close on deals. In which case the Wholesaler makes peanuts. At times a Wholesaler does manage to get a property they can hold on to from a distressed home seller - using seller finance and Hard Money Lenders. However the homes acquired in such a manner are rarely properties you would want to live in.

As a Corporate Finance Lawyer with many years of experience in the Securities Industry and Real Estate I have been able to develop unique strategies that enable RE Wholesalers to become End Buyers of the Houses they contract to purchase. Thus enabling them to make the lion's share of profit on each deal instead of ending up with a handful of peanuts after assigning contracts to investors.

There are also substantial tax advantages with the specific techniques so there is little lost there too. Instead of making around $10,000 as the averages show, netting after tax just $6,000 it is possible for a RE Wholesaler to make well over $30,000 on most deals after tax - sometimes $100,000 on a home worth $500,000.

Most Wholesalers dream of being a Property Magnate. Which leads them to acquiring cheap houses for little or no money down. There are risks in this strategy - relating to the market, borrowing cost, and the economy.

Instead of beguiling yourself with the prospect of holding a vast array of poor quality houses does it make more sense to build a Real Estate Empire owning High Class good quality homes in nice areas? Certainly it does. And that is the only type of houses you should invest in - to buy and hold long term!