Many people dream of making money in real estate. For most people, this will remain a dream forever, but some people can make their dreams come true. The fact is that even the least experienced person can make money in real estate if he follows a few basic rules. One way to make good money in real estate is to “trade houses.” What is moving house? Can you really learn to flip houses?

We’ve all read stories about someone who made millions in real estate. But how have they done it? Here is a quick guide on how to make good money in real estate. It’s easy to follow and you can check each step if you spend extra time researching it and checking its accuracy. Let’s say you live in an apartment or your own house, and his income allows you to make an extra mortgage payment for a few months. Keep in mind that you don’t plan to keep the objects you deal with forever. 5-year mortgage terms or ARMs with terms of 1-3 years will work to our advantage.

A good way to start is to buy what are called HUD houses. These houses are sold or auctioned off by a mortgage lender. HUD homes generally require some work up, but the asking price is well below normal market values ​​for comparable homes that are in excellent condition. HUD homes can often be purchased with little or no down payment, of course, depending on your personal credit history. Once the HUD item has been purchased, start troubleshooting the house and getting it into a condition where it looks well maintained.

If you’re good at doing things yourself, great. If not, you should look for low cost repair people in your area. Choose sole proprietors that are often advertised with low cost flyers or classifieds. Make a deal with them and promise them more business if they work with you. The next step is important. Depending on market conditions, you’ll sell the house yourself, saving money you’d normally have to spend at the real estate agent. If you act carefully enough, you should be able to make a profit of 20% to 40% of the overall transaction of buying and selling the HUD object.

Important: Be sure to put some of that profit into a savings account to cover your tax liability.

With the remaining profit, you turn around and do the same thing again. Find the right HUD home and buy it. Fix it using the same procedure as shown above and sell it. Again, set aside money to cover your tax obligations.

Depending on your skills and market conditions, you should be able to go through this process at least twice in your first year. With any luck, you’ll be able to buy the third item with cash only, or you’ll just need a small mortgage. By now, you’ve probably streamlined certain steps and eventually built a network of vendors to help reduce your turnaround time from the time you buy the house to the time you sell it again.

Important: When selecting HUD homes to fix up, focus on those that primarily need cosmetic work. New interior and exterior paint, new carpet and the like. Stay away from houses that need structural work. Even without experience you can do jobs like painting the interior walls. This is really easy to do as no furniture is in your way and if you are going to replace the rug anyway.

Be aware that friends and family may try to talk you out of moving house. They are afraid of risk and of course they have never done this before. Most people avoid risks in life at all costs. Don’t listen if you feel confident enough that you can. Sometimes you have to ignore advice to find your own luck. Keep in mind that you are buying real estate. It is not a risky stock that loses 50% in value in a day. Yes, it may come to market at a slow point, but time is on your side. As long as you can afford the extra mortgage payment for 6-12 months (worst case), you should be fine.

Moving houses is an easy way to make a fortune in real estate. Plan each step properly. Work with a mortgage broker and explain that you only plan to keep the house for a short time. Ask about loan programs that allow you to buy with little or no down payment.

Important: when you fix the house, let yourself be guided by psychology. It’s not you who has to like the house. The potential buyer has to like it. Find out what the current trends are for new homes and their interiors. Choose the right colors for paint and carpet. Model homes can give you a good lead and lots of ideas.

There is almost no other business that allows you to earn money with almost no down payment in such a short time. In fact, more millionaires made their fortune in real estate than in any other business according to Internet statistics. So why shouldn’t you be the next millionaire to do it with real estate?