Did you know you can get paid multiple times from one deal? (And we're not talking about rentals.)
In real estate, there are a lot of different ways to make money on every deal. These are known as exit strategies. Every lead has many exit strategy options such as wholesaling, rehabbing, buy and hold, and more.
However, truly savvy investors, like JoAnna Anderson of Remnant Real Estate Solutions, get even more creative when the deal calls for it!
Get Creative Finding Buyers For Wholesale Deals
The first way to make money on a deal may sound awfully familiar... wholesaling.
There is nothing unique about wholesaling a property to an investor buyer, but what a lot of people don't think about, is the large network of qualified "flippers" in their contact list that they oftentimes forget about: contractors.
That's right. The very people who are working on your property are primed to start flipping houses themselves. That's because the freedom that real estate investing creates is infectious. Whether it's your contractor, private lender, or even your real estate agent, it would be silly to assume that none of them would be intrigued by the thought of more freedom in their lives.
You just have to present it to them in a way that makes sense and shows them how much opportunity there is for not much more work than they're currently doing. This is especially true since you've already done the hard part... finding the lead and negotiating the deal!
That's where the Deal Analyzer and Repair Estimator inside Realeflow come in handy. They break down deals in a simple way that anyone, regardless of whether or not they've flipped a house, can understand. Print them out and take them with you when you meet with potential buyers.
Now, wholesaling a property to your contractor isn't always an option if your contractor isn't interested, but it's always worth the ask. It will only cost you an email or a phone call to gauge their interest.
Another option is to send an email broadcast through Realeflow to people outside of your cash buyers list. A lot of users will also tag certain real estate professionals in the industry as potential buyers so that they can market to them later down the line.
The issue you might run into with a lot of contractors, or other real estate professionals, is that they don't have funding OR don't know how to market the property when it's finished.
This is where your network and unique skill set comes in!
Tap Your Network For Referrals
The next way you can make extra money on every real estate deal that comes across your table is through referrals.
Important Note: Before we talk about referrals, make sure you check with a local real estate attorney to verify your laws regarding referral fees.
In the case of JoAnna's deal, she was able to introduce her contractor to one of her private lenders and received a referral fee for it!
The other thing to consider is that you may not make a referral fee upfront when tapping into your network, but you are building relational equity with the person that could pay dividends down the line.
This could be anything from discounted work or them bringing you potential deals! So always keep that in the back of your mind.
List It For Them!
The next way to make extra money on every real estate deal is to list the property for the person you wholesaled it to.
This one requires one smell step before you can do it... getting your real estate license.
A lot of real estate investors stay away from this route, but it can open up, not only referral fees, but also listing fees! That's because now you can wholesale a property and then get the listing as well!
There are a lot of other advantages to having your real estate license, including getting access to the MLS and avoiding some of the legal issues associated with wholesaling.
If you do go this route, there are other considerations for how you do deals going forward. Consult a local real estate attorney to talk more about the disclosures you'll need as a real estate investor with a real estate license.
Create New Relationships
The last way to maximize every deal is to focus on establishing new relationships with every contact you make.
In the case of JoAnna's wholesale deal from the video above, she established a valuable relationship with the county and now receives nuisance property leads from them. (Learn more about that relationship here.)
That's not money up front, but with the systems and tools that JoAnna employs in her business, that is money down the line as she converts those leads into deals!
Want to check out some of the tools and systems that seasoned real estate investors use in their businesses? Get your copy of our Free Real Estate Investing Toolkit below.
What are some other ways you can make money in real estate outside of traditional exit strategies? Comment below...