Of course, with these examples, the amount of work, time and knowledge you put into it will certainly pay off more (or less)
1. Property Profiling (birddogging) – this popular way to get started in real estate investing provides a real estate investing job with a decent income – something along the lines of what a factory worker would make in the area.
2. Lease Purchase – this powerful tool can be utilized to buy and sell property with no money out of your pocket (a Real Estate Investing sandwich), while keeping a nice pocketful of money for your time (can you tell this is one of my favorites?) An active person can make about 1.5 – 3 times more than the Property Profiler, on average.
3. Subject To – with a bit of training, you can make this method of real estate investing really pay off big. Once you know how to negotiate these deals, your real estate investing income will reach that of corporate executives – with much less of a time requirement.
4. Foreclosures – while highly lucrative and one of the top income producing methods of real estate investing, the time and knowledge required to actively pursue such deals is becoming more difficult all the time.
The payoff to those that can perform these deals is huge – about 10 times that of the Property Profilers, however, finding deals is much more difficult due to the number of people looking for them.
5. Tax Lien certificates – this is a true form of Real Estate Investing – actually putting your money into something that produces a return – one of the safest investments around with returns that beat any other form of passive investing. If you have money to invest, this is a great area to get into with 15%+ return with almost no down side.
This is still a real estate investing ‘job’ as tax lien certificates are short term, quick turn profit generators, not sustained over time, plus they take skill and talent to make the maximum profits.
6. Short Sales – this form of Real Estate Investing is another job, as your knowledge level and timing are extremely important. A lot of money can be made with this type of Real Estate Investing job – as much or more than any other form – once you know how.
7. Secondary notes/Purchasing Equity positions – a ‘higher level’ of real estate investing, where more knowledge is needed to limit the risk, however, the returns on equity position purchases can be extremely high – from 6%-10% for fully passive results and ‘sky’s the limit’ for purchasing equity positions.