6 Major Ways To Profit In Quick Turn Real Estate Investing
Here is a clearer breakdown of each method, translating the provided definitions.
1. WHOLESALING
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The Simple Analogy: You’re a “finder” or a “matchmaker.” You find a deeply discounted property and sell your right to buy it to another investor for a fee.
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The Process: You get a property under contract at a low price. Before you close, you “assign” (sell) that contract to an end-buyer (usually a rehabber) for a higher price. The fee you earn is the “assignment fee.”
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Key Trait: This is the ultimate “quick turn.” You never actually own the property. Your profit comes from your ability to find the deal and connect it to a buyer quickly.
2. RETAILING (House Flipping)
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The Simple Analogy: You’re a “manufacturer.” You buy a raw material (a distressed house), improve it (renovate), and sell the finished product (a move-in ready home) to a retail customer.
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The Process: You buy a bargain property, fund the repairs (often with a hard money loan), manage the rehab, and then list it on the open market for a retail buyer using traditional financing.
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Key Trait: This is the most well-known “quick turn” strategy. It requires more capital, time, and risk management than wholesaling but can yield higher profits per deal.
3. GETTING OWNERSHIP (Creative Acquisition)
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The Simple Analogy: You’re a “creative financier.” You acquire the deed to a property without using traditional bank financing.
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The Process: This involves strategies like:
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Subject-To: Taking title “subject to” the existing mortgage. You make the payments, but the loan stays in the seller’s name.
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Seller Financing: The seller acts as the bank and carries a loan for you.
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Key Trait: The goal is to acquire long-term, cash-flowing assets without a bank, often with little money down. While this can be a “buy and hold,” the acquisition itself is a “quick turn” creative finance technique.
4. LEASE OPTIONS (Rent-to-Own)
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The Simple Analogy: You’re a “middleman” between a motivated seller and a tenant who can’t buy yet.
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The Process: You lease a property from a seller with an option to buy it at a fixed price in the future. You then sublease it to a tenant-buyer, giving them the right to buy it (usually at a higher price).
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Key Trait: You control the property and its future sale price without owning it. You profit from the monthly cash flow (the spread between your lease payment and their rent) and the eventual “assignment” of the purchase contract.
5. OPTIONS
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The Simple Analogy: You’re “locking in” a price. You pay for the right, but not the obligation, to buy a property later.
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The Process: You pay a seller a non-refundable fee for an “option” to buy their property at a set price within a certain period. If you find a buyer for a higher price within that time, you exercise the option and pocket the difference.
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Key Trait: This is a lower-risk control method than a lease option because you don’t have to manage a tenant. It’s pure speculation on a property’s future value.
6. Assigning Contracts
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The Simple Analogy: This is the mechanism behind Wholesaling and Lease Options.
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The Process: You have a contract with a seller (e.g., a purchase agreement, a lease option). You then “assign” your rights and obligations in that contract to another buyer for a fee.
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Key Trait: This isn’t a separate strategy but rather the legal tool used to execute strategies #1 (Wholesaling) and #4 (Lease Options) without needing to close yourself.
You Should Become a “Transaction Engineer”
This is the most important concept. A Transaction Engineer is not just a buyer or a seller; they are a deal architect.
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A traditional investor might only know one way to buy: get a mortgage.
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A Transaction Engineer looks at a distressed property or a motivated seller and designs a custom solution using the 6 tools above (and more).
They ask: “What is the best and fastest way to profit from this situation?”
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Should I wholesale it?
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Should I lease-option it and create monthly cash flow?
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Should I buy it “subject-to” and then retail it?
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Can I use an option to control it without any upfront cash?
By mastering all these techniques, a Transaction Engineer can create a win-win-win situation: the seller gets their problem solved, the end-buyer/tenant gets a property, and the engineer earns a profit for their creativity and skill. This is the essence of “Quick Turn” real estate.
