Everyone knows that real estate has made more millionaires than any other industry, and that it has a low barrier to entry for a new investor. You don’t need a degree or any experience to begin. You just need a strong work ethic and a desire to learn. And that’s where we at SREC come in. We’ve been at this for some time, nearly 7 years, and we remember what it was like to start a new business that we knew little about. It was a tough start. With so much conflicting information, the real estate landscape is littered with courses and gurus that promise untold riches if you follow their system. What we learned is that the only real short cut is education and action — both the kind you get from being on the streets buying property, and the kind you get from working with other investors who have achieved the success that you want to experience. What we hope to do here is give you a snapshot look at the strategies we have used to make money, no matter what the situation. I hope you see the tremendous opportunity for serious wealth accumulation, and the fun you can have by using so many different exit strategies. Consider this a grab-bag look at all the different ways to make money with real estate, depending on the situation – there’s actually more than 52 ways included here. This is where it gets fun.

1. 52 Different Ways To Make Money In Today’s
Real Estate Market

2. Let’s Get Started.
 At Strategic Real Estate Coach, we believe the only real
shortcut to getting the money you deserve is Education &
Action- both the kind you get from being on the streets
buying property, and the kind you get from working with
other investors who have achieved the success that you
want to experience.
 Consider this presentation a grab-bag look at the
different ways to make money with Real Estate in today’s
market. See if you can spot all 52!

3. Sheriff’s Auction (1)
 This is the method banks use to take back properties in default from
those homeowners who have failed to make their mortgage
payments.
 Once you have made your bid, put your money down, and seen
the house — what’s next?
 What repairs need to be made?
 What is the neighborhood like?
 Is there demand for housing?
 Is there employment?
 In answering the previous questions, you can decide to do any of
the following:
 wholesale the house to an investor or end buyer who wants it (2)
 rehab the house and sell (3)
 keep it as a rental (4)

4. Free & Clear List
 This is a list for purchase that provides the names of those
individuals in your market that own their properties outright. In
other words, they have equity because they have owned their
houses for a number of years, and have kept current with their
payments.
 With these houses, you can make money by:
 wholesaling the house to an investor who will make repairs (5)
 rehabbing the house and selling it yourself (6)
 making the repairs and rent the house (7)
 This can be a good portfolio builder
 buying the house using owner financing and then sell as a lease option
(8)
 You can also set up what’s called an equity split (9)
 Do this by making an agreement with the seller on the front end
that, for a discount on the house once it is rehabbed and sold,
you’ll give him or her a percentage of the profit.

5. Out-of-State Owner
 This is very simply a list of out-of-state owners.
 may be landlords who have property out-of-state
 might also be individuals looking to get rid of that vacation home as
a way to cut back on expenses
 These individuals can be extremely motivated to sell fast once
they grow tired of the care, maintenance, and general expense
associated with their property.
 There are two strategies to use depending on whether the
property has equity or is in default
 If the house has equity, you may treat it as any other house.
 wholesale (10)
 rehab and sell (11)
 rehab and rent (12)
 buy using owner financing and sell as a lease option (13)

6. Out Of State Owner (cont.)
 If the house doesn’t have equity, then you’ll need to:
 Short Sale (14)
 Wholesale (15)
 Rehab & Sell (16)
 Keep it as a rental (17)
 Lastly, you could simply send the lead to another investor (18)

7. Fire Damaged House
 As a general rule, if you decide to take on one of these,
then you need to decide whether it’s cheaper to knock
the house down and rebuild than to make the repairs (19)
 For some investors, fire damaged houses are cash cows.
 They like the fact that if they can get to the seller before the
insurance money arrives, the seller can be instructed to pay
down the mortgage, which creates equity and room for a
discounted offer to be accepted.
 For these investors, they may:
 Buy cheap & sell (20)
 Rehab & rent (21)
 Wholesale (22)

8. Probate
 This is the legal process of determining the validity of a will, paying off
the debts of the estate and determining who is to receive the
remainder of the estate.
 When targeting probate houses, look for houses that have been
inherited.
 Families are looking to sell these fast.
 unfortunately, if there is a will involved, these houses can be tied up in
probate for several months.
 Exit strategies for Probate houses
 Wholesale! (23)
 Retail (24)
 Buy, fix, & rent (25)
 Or act as a bird dog and send the lead to another investor (30)

9. Divorce List
 People looking to get rid of a house due to a divorce can be
motivated sellers.
 Go for a short sale.
 since financial stress is the leading cause of divorce, chances are slim
that you’re going to find a house in a divorce case that has equity.
 Use the previously mentioned strategies to turn your hard work into
pocket money

10. NOD List
 Notice of Default List
 includes all the names of those people in your market who are 90
days late in paying their mortgage.
 One of the very best ways to find motivated sellers.
 They may not want to sell when you first contact them, but just
keep coming back (ask for permission first) and at some point,
most wake up and see that losing the house is a certainty, and
that they need to consider the next step.
 Most don’t have equity, so…
 Wholesale (31)
 rehab and retails (32)
 rehab and rent (33)

11. Code Violations
 The inspector will assign a violation that the homeowner has to
address by making the necessary repair in a specific amount of
time.
 A house on this list can often suggest financial distress, which usually
means motivated sellers.
 With these houses, you have many options.
 Wholesale (35)
 Buy, fix, sell (36)
 Keep for your rental portfolio (37)
 Short sale (38)

12. Driving For Dollars (39)
 When you’re driving around town, keep your eyes out for distressed properties.
 Indicators include:
 Peeling paint
 Shoddy roofs
 Tall grass
 Mail at the doorstep
 With a little effort — either by knocking on the door to see if anyone is home, or by
checking with the neighbors to see if anything is known about the house — you can get
enough information to track down the owners to see if they are willing to sell.
 If property has equity
 Wholesale (40)
 buy, fix, sell (41)
 Keep it as a rental (42)
 If there’s no equity,
 Short Sale (43)

13. Tax Liens
 Property owners who do not pay their property taxes often will be
subject to a tax lien.
 Usually, the two go hand in hand, but what you need to know is
that property taxes take precedence over mortgages, which
means that the city can sell the house for cheap.
 Your best option is to pursue a short sale. (44)

14. Bird-Dogging
 This is simply the practice of providing secured leads to other real
estate investors for a fee.
 You may
 Sell your lists to local investors (45) for $1000 (making sure to update them
monthly for continuity) or take the time to qualify the lead, set the
appointment, etc., and deliver a done-for-you lead service for investors
(46) willing to pay your price.
 As you acquire these opportunities to buy houses, you should use
some of them to help you build your network of buyers — other
investors, rehabbers, landlords — in your area.
 Buy the house outright as a traditional sale, take ownership of it and
then resell it.

15. Assignment (47)
 An assignment is a good option when you have a house under
contract, but for whatever reason you decide that you’d rather
not buy it.
 Since every lead is money, you don’t want to just walk away. If
you don’t want to make the buy, then another investor in your
market probably will, if the contract price is low enough. This is
called wholesaling.
 The process involves the use of an assignment form, which gives
the new investor the right to buy the house for a fee that goes to
you in return for you giving them your contract and pre-
negotiated price.

16. Back-to-Back Closing (48)
 This will be an important strategy when you need to sell fast,
and you don’t want to hold onto the property for more than
a few days.
 In a back-to-back transaction, the investor (B) buys the
property from the bank/seller (A) and then immediately sells
to the end-buyer (C).

17. FSBO – For Sale By Owner (49)
 You own a property, and are looking for a buyer to sell
directly to.

18. Green Light Selling System
 When you use this strategy, you are using a combination
of yard signs, staging, and the Internet to generate
interested buyers.
 There is a three-phase approach we use to getting
massive amounts of traffic (potential buyers) to the
house.

19. Wholesaling (50)
 This is when you sell a property quickly to a buyer who will
close quickly and accept the property in its as-is?
condition — even if it needs work.
 Another way to think of it is being a middle man.
Wholesalers buy low and sell fast with little to no work
done on the property.

20. REOs
 These are properties that have gone through the
foreclosure process and have been taken back by the
bank.
 They are usually listed with a specific real estate agent in
your area (or several) who is then responsible for selling
the property.

21. Short Sale
 A short sale will occur when the bank agrees to take less
than what is owed on the home’s mortgage.
 In essence, they are shorting? the loan. This gives real
estate investors a wonderful opportunity to buy property
for less than they otherwise could.

22. Rehab (Fix & Flip)
 This is when you buy, hold, rehab and sell a property (or
fix and flip).
 The common approach for establishing what to offer the
Seller is to take the After Repaired Value (ARV) of the
house, multiply times 65% then subtract repairs.

23. Note Buying (51)
 When you buy a note, you become the bank. It’s a promise to
pay. It must have a beginning date, an ending date, and a
place to pay; it must state who to pay and under what terms.
 In real estate, you need to remember that a note is secured
by a mortgage. Without a mortgage, a note is only secured by
a person’s promise to pay.
 When you buy a note, the persons involved are normally the
seller of the property (the homeowner), the seller of the note
(the bank), and you as the investor looking to buy the note.

24. Long Term Rental (52)
 You may choose to make money by purchasing a
property and then renting it, thereby acting as a
landlord.
 This can be a profitable investment, particularly if you find
tenants who will pay their rent towards the eventual
purchase of the property (lease to own).

25. For more information,
Please visit
www.strategicrealestatecoach.com