Trading real estate is not for everyone, but it is the fastest way to make money in the real estate business. Most everyone has heard of someone who buys a “run down” house for a good price well below market value, fixes it up, and sells it for fair market value. Casting a “top fixer” is definitely a way to make a reasonably quick profit. I know a few people who do it this way, but they are more into the contractor business and renovations than the investor mindset.

Some of these “top repair” properties are in need of extensive repair and will require electrical work, carpentry work, etc. If the investor gets involved and does some or all of this work, then there might be enough profit there, but if the investor hires the required labor, the profits could be eaten up quickly. For this type of real estate investment, the purchase price must be deeply discounted and would normally be somewhere in the foreclosure stage.

For the person who is in the investing mindset rather than in the renovation business, selling real estate will just mean changing the paper lease on the property without ever taking possession of it. You can change by entering an agreement to buy a property and then sell the contract to another investor before escrow closes.

Using this technique won’t even require you to put your name in the title. The profits will generally be less than the top investor in need of repairs, but it involves a lot less work and the whole process is a lot faster. An investor in need of repairs wouldn’t be happy to earn a few thousand dollars for a few months of work on renovations, but an investor who can trade a contract for a few hours or days of work would be.

Avoid disclosing your earnings to the new buyer by using a double closing.

After making a good deal and trading a contract that involves a hefty profit, you may not want all these details revealed to your buyer. The solution is a double closing, transferring the property to you initially, and then immediately reselling it at the same attorney’s office just an hour later to your buyer.

There’s a downside here and it’s a double set of closing costs, so you’d have to weigh it up to see if it’s worth it for your particular situation or not. Also, you can use a title insurance company for the actual closings. For the issuance of the title insurance policy, the title insurance company will prepare the closing documents and close the transaction generally at no additional charge.