Real Estate Investing: Jumbo Return, Diminished Risk
Time and money are two of our most precious personal commodities. And for most people, there is never enough of either. If you are like most people, you are afraid of the stock market in this uncertain economy. But take way the fear factor and traditional investment still does not hold much promise:
• Traditional stocks: Even before the economy tanked, playing the stock market was a risky move because the viability of a company relies on more than a strong economy. If a CEO steals from the company’s coffers, the company can go under. If the product the company produces is found to have a defect of just wanes in popularity, the value of the stock will go down. Do you want to invest your money when there are so many “ifs?”
• Retirement savings. You can invest all of your money in planning for your retirement but what will you do in the meantime? While it is good to save for retirement, if you need money fast, you will lose money and taxes if you withdraw early.
• CD’s. This is “old school savings.” CD’s are safe but the average return is 1-3 percent and you have to wait until they mature before you can cash them in for payment.
Besides hiding your money under a mattress where it will never pay interest, what is a safer way to invest your money? Real estate! Not only is the investment less risky, but you will see a higher return on your investment.
Real Estate Investment Options
• Say “Howdy Partner!”—but quietly. Be a silent partner in investments. These are called limited partnerships where basically, you provide the money for the developer. But you may not be the only developer. There may be several partners. The good news is you can earn as much as 20 percent on your investment. But this may be the most risky form of real estate investment.
• “Mutually” invest. Real Estate Investment Trusts offer mutual funds that can earn you high interest. But before you get your return, you have to pay management fees.
• A high yield. Investors say that high yield private mortgage notes can give you returns up to 18 percent because the loans close fast. However these are based on the property’s value and are short term.
The Best Real Estate Investors Never own Property
The above statement is true. The best investors never own a deed or title. If you want to make money fast without a lot of complications, wholesale investing in real estate is the only method that is proven to work. Why? First, because wholesaling is simple. Second, since you never actually own the property, you don’t have to go through a lot of complicated deed transfers, etc… And finally, you will have very little risk and in some cases as little as $10 invested. Wholesaling is not some ‘get rich quick’ scheme and it does take work. Here are the steps you can take to become a successful wholesale investor.
1. Learn all you can to make sure wholesaling is right for you. The Internet has thousands of articles about wholesale investing in real estate. Read these articles. If you know of a wholesale investor in your community, see if you can take him or her to lunch and get some advice.
2. Start networking as soon as you decide to begin a wholesale career. To make the deals, you need buyers and sellers. You never know who may own some property they will want to get rid of quick one day. If they know that you are a wholesaler they can call you to close the deal. Also, networking is a great way to sharpen your people skills, which you are going to need when dealing with buyers and sellers.
3. Place some inexpensive ads in some local publications. You don’t have to spend thousands of dollars in your local newspaper’s classifieds. Look for small publications that have great readership. Their ad rates are usually cheaper. Don’t forget free online classified sites like Craigslist.
Wholesaling doesn’t require a real estate license but you can make as much money if not more than a realtor. Simply find great properties, get a contract to sell the property and make the sale to a qualified buyer. Wholesaling is the easiest way to invest in real estate and make great profits.
Dan Koch is a full time real estate investor, educator, and mentor to hundreds of real estate students across the country. If you want to find out more about real estate investing stop by for a ton good information!

