So – Who Is Making Money in Real Estate Now?

17 Mar

Post written by Sean Terry. Follow me on Twitter.

We had a rough 2009 until we pulled our heads out of the clouds and asked…

“So…Who is Making Money in Real Estate Right Now?”

Is Sam Zell?  I’m sure he is, but for the rest of us it’s funny how a simple question can point us in a complete different direction.

Last November when we dug in and really looked at the transactions being successfully closed over a short period of time, we found that FHA loans and cash deals were the ticket. So here’s my short list:

Top 3 Groups Making Money in Real Estate Right Now

1. Wholesalers: The art of flipping properties to cash buyers via an assignment fee or double escrow.

You can check out our wholesale site here: www.FortressWholesale.com

2. Auction Bidding Service: a service provided for investors looking to bid on properties at the court house auctions.  This is a very intense and fast pace way to purchase properties and if an investor doesn’t know what they’re doing they could get burned in a big way.  The “Auction Bidder” as a service, would provide a title report on the property, possible comparable sales, and they would bid correctly at the auction location for you.  We have a friend that has been providing this service for years here in Maricopa County and charges roughly $2,000 per winning bid.  He is doing roughly 15 a day right now.  You do the math. Here’s a video interview below:

http://www.bidazforeclosures.com/

3. Fix and Flippers: Purchase a property at a discount, renovate them, and sell them to a first time home buyers.  Most of the loans being completed are FHA Loans. This is a very lucrative for investors as the First Time Home Buyers Tax Credit has spurred a buying frenzy.

So if you’re stuck, ask yourself the simple question “who is making money right now?”  Then search all the transactions around your area that has closed in the past 60 days. This will give you a real good indication what is being bought and sold.

As they say… ”Find out where the money is flowing and find a way to get in front of the action”

I know this is a short list and I’m sure there are many other groups making money in real estate right now, so if you know of any, your input would be greatly appreciated!

Happy Investing!

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5 Responses to “So – Who Is Making Money in Real Estate Now?”

  1. Torrey 29. May, 2010 at 5:57 pm #

    Great post!! You summed it up at the end with the “Find out where the money is flowing and find a way to get in front of the action”. This is a true statement and one that I live by. Of course markets always change so you have to change with them or die.

  2. Pete 31. Aug, 2010 at 5:08 am #

    I know that you mentioned wholesalers and flippers. But don’t forget about the people who are doing lease options, short sales and owner financing. They are making money to.

  3. Wayne 17. Feb, 2011 at 7:53 pm #

    “Find out where the money is flowing and find a way to get in front of the action”

    Best thing I have heard this year so far.

  4. acne 22. Jul, 2011 at 4:15 pm #

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  5. Simon from real estate investing 30. Jul, 2011 at 11:34 am #

    I do wholesale real estate investing mostly, and usually find my deals directly from motivated sellers.

    And yes, there’s still a lot of money in this business model.

    I do see quite a lot of REO investors, though this is a field i have not explored. Maybe there’s money here too!