How to Make a Million in Less Than an Hour
Is it possible to make one million dollars in less than one hour?
Yes, in a clever real estate deal this is possible.
To construct a deal such as this requires two main components.
The first component is to take contractual control over a property while using little to no money down. The control is a legal control based on the contractual paperwork. It sets out the sale of the property for a specific price and under exact conditions, which includes the time necessary to close the deal.
The second component is to find a buyer for the property that will pay more that the contracted purchase price.
How Can this Work?
Well, one thing that makes this possible is when the real estate investor has specific knowledge of an area that is not easily discovered by others.
Another way this happens is when a real estate investor has a personal relation with the property seller. The property seller knows the real estate investor and the investor gets the information when a seller is really motivated to sell a property.
In fact, real estate investors that develop many personal networking contacts often are offered these opportunities without even having to look for them.
The real estate investor also needs to have direct relationships with “deep pocket” investors that are ready and willing to buy the property.
What One Needs to Bring to the Table
There are a few things necessary. The most important thing is having a reputation that creates confidence. Motivated sellers are desperate for many reasons. This also makes them a bit scared. For high value properties, secured by paperwork (not money) only, the sellers need to feel that they have made a real deal.
Bogus Fakers Should Not Apply
If you cannot really make a deal, then there is no reason to fake this process. That is a no-win situation, which does not help anybody.
However, the win-win situation is where the seller gets their problem resolved, sells the property quickly, and there are no hiccups that stall out the closing of the deal. They do not even care if you make money on the deal. All they care about is that the sale of the property closes on time.
Timing is Everything
These buy-sell deals without having any cash at risk are all about timing. The time available to work with is short. It is the time that the sale/purchase contract allows for the deal to close. Typically, it is between 45 to 90 days. Motivated sellers that offer properties at well below market prices are naturally impatient.
They need to sell the property right now for a variety of highly motivated reasons. They might allow contractual (no money down) control with the right of assignment to easily pass the title to another owner, but they normally would not allow such a deal that lasts for a long time before they get their money.
Conclusion
Yes it is possible to make a buy-sell deal and close at the same place and moment in time. In one room of the title company, the paperwork is processed for the real estate sale. In another room at the same title company, the sale paperwork is processed to grant the title of the property to the new buyer. The difference between the purchase price and the sale price goes into the investor’s pocket that structures the deal.
These deals are not easy, but they are doable when the math works out and the purchase and sale can be done at the same time.