ONCE1025 - Fund, Fix and Flip: How to Invest in Real Estate
Course Description
Real estate investors have many different investment options to reach their overall goals. Choosing which niche to specialize in can be a very difficult decision. This course details strategies to generate income by investing in Real Estate.
The Office of the Philadelphia Sheriff conducts several Sheriff Sales each month at which properties with court-ordered foreclosures are sold in an auction. The process of buying a property at one of these sales can seem complicated. In this course, The Philadelphia Sheriff’s Office will discuss how to purchase properties at auction.
This course is offered in partnership with the Real Estate Institute, the Office of Non-Credit and Continuing Education, and the Philadelphia Sheriff's Office.
Course Outline
Fix and Flip Investing
The fix and flip strategy, if executed properly, consists of buying a real estate asset at below market price, improving the property through strategic rehab and selling that same property for a monetary gain. This strategy gets a lot of attention and can be the more glamourous option compared to buy and hold. While the short-term gains can be tempting, this investment strategy is not for everyone. There is much skill, strategy and risk tolerance needed in flipping homes.
- Get-Rich-Quick Upside
- Speed is of the Essence
- The “Fix” in the Flip
- Understanding Taxes
Buy and Hold Investing
The buy and hold strategy is very different than fix and flip because investors purchase homes to hold for the long term (no immediate exit strategy). This is generally done by buying an asset, rehabbing the property if needed, and then leasing it back out to renters at a monthly rate. In this strategy, investors can make money in two ways: through the monthly cash flow that comes from rent and also through the appreciation of the assets over the long run. Buy and hold is known as a great way to amass wealth and generate ongoing cash flow.
- Get Rich Slowly
- Peace of Mind
- Not a Full-Time Job
- The Headaches of Being a Landlord
Sheriff Sales
This portion of the course will inform the participant regarding:
- The amount of money and document required to secure a winning bid.
- How to pay for the property if you have the highest bid.
- What is the Right of Redemption and how that may impact a sale.
- How long the process will take for the winning bidder to actually receive the deed for the property.
- How to recognize, and research, the type of property you are seeking to purchase.