Written by David Gass
Creative real estate investing is when investors use non-traditional methods to buy or sell a property. It refers to unusual methods for selling or acquiring real estate.
Investors frequently practice many different kinds of creative real estate investing.
Popular Techniques
Seller Financing: This is an unusual real estate investing technique where the property owner offers to finance the buyer. The owner typically lends a portion of the equity to the buyer and receives regular monthly payments. The mode of repayment may differ. It may be a principle only payment and interest may be fixed or variable, all depending on the contract agreed upon by both of them. Sometimes the buyer assumes the seller’s loan, which they write as an all inclusive trust deed. Loans for commercial property are known as assumable loans and residential loans are known as non-assumable. These two techniques are used widely.
Lease Options: This refers to a person signing a lease as well as an option to purchase the leased property within a fixed amount of time. The options usually last for short durations of time like 12 months and the buyer agrees to pay an additional amount as an option fee, which will be forfeited should the option not be carried through. There are lease purchase options that make it mandatory for a buyer to buy the property with the term of the option. The price of the property is fixed at the time of the agreement and no matter what the land value, the buyer must pay the amount stated in the agreement. Sandwich lease options are methods of buying a lease option and immediately selling it to another buyer for a profit, which is shared by the owners.
Other Techniques
When mortgages are defaulted, the owners may try selling the property to the lenders asking them to accept a lesser amount than what is owed in the mortgage.
Another technique is to buy bulk properties from banks and sell them individually for a small profit.
Using tax liens to acquire property is also a creative real estate investing technique. Investors buy tax liens from the government and should the homeowner default, the investor may foreclose on the house.
Some people buy a property that is ugly, old, or unfit, make a few changes to give it a facelift, and sell it for a huge profit.
The chance for being successful by investing in real estate is astounding. With careful planning and creative real estate investing techniques, a person can make a huge profit as well as build a successful career dealing in real estate.
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
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Written by Steve Gillman
Investing in real estate should be a pleasurable and profitable activity. Listen carefully to investors, though, and you hear not just success stories, but sad tales of stress and losing money. Here are some tips for keeping your real estate stories happy ones.
- Have a top price. Properties have a market value, and then they have their value to you. Many investors pay too much just because everyone else is doing so, and then they have negative cash flow month after month. Just because others are paying too much for duplexes, doesn’t mean you have to. Once you decide on a top price that works for your plan (which hopefully involves cash flow), start below that and don’t go a penny higher. The time to set your limit is before the negotiations start, not during them.
- Choose partners carefully. Investing in real estate can be an uncertain process. Too many decision-makers just make it more so. If you must have a partner, clearly define your roles before you start a project. Group decisions tend not to work well, and will cause you much stress. It is often best if one partner puts up the bulk of the money, and the other runs the show. Agree to a plan, then step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.
- Listen to what the market is saying. When the cabinet guy asked me for a decision I realized that I knew nothing at all about which cabinets people like. I asked him which ones home owners were most often choosing, and he pointed to one that three quarters of his last forty customers had chosen. Then that’s the one I want, I told him. Why would I argue with the market I am trying to sell to? I have seen sellers paint a home a certain color because they like it. That’s a quick way to reduce the market value of a home. What colors do the potential buyers like? That’s what is important.
- Understand the numbers. Investing in real estate is all about the numbers. If it is an income property investment, it’s about one number in particular: cash flow. Be aware of whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever. Ultimately, though just be sure that after every last expense you’ll have cash flow from the very first month. If it is a residential fixer-upper, know what it will sell for and what it will cost to fix it up - before you even make an offer.
- Don’t confuse investing with gambling. Investing in real estate isn’t gambling, or at least it shouldn’t be. There is risk, but unlike true gambling, the odds are in your favor. At least they should be, and you should be able to clearly see the outcome. This why you shouldn’t invest based on the assumption of continued fast appreciation. Over time, real estate values do trend upwards, but there is no guarantee that prices will continue up at any particular rate during a given time. Do deals in such a way that they’ll be profitable even if prices go nowhere. If values go up, you’re that much better off.
- Do the research. Understand the statistics and information you are looking at. It is possible that the real estate agent will show you only the comparable sales that make the property look more valuable. With a bit of your own research, and an understanding of how the various numbers are arrived at, you can avoid overpaying. Many counties have made researching prices easy, with sales prices online. Other web sites, such as the U.S. Census site, have information on population and jobs. Understanding these figures can mean not investing in real estate just before the town declines.
These tips, like all others, are just guidelines of course. You can “gamble” on rising values, for example, if you really did your homework and know the demand for housing in a town is about to explode. You might pass up a great opportunity too, because you refuse to go $500 over the top price you set. While having a few rules and guidelines is a good place to start, don’t let them take the place of thinking when investing in real estate.
Copyright Steve Gillman. For a Free Real Estate Investing Course, visit: http://www.HousesUnderFiftyThousand.com
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Written by Jeanette Joy Fisher
If you want to make money investing in real estate, you have to begin with a plan. Here are some ways to get started investing in real estate. Choose a plan that works for you.
If you don’t currently own your own home, that’s the best place to start. Many people never buy a home because they think they have to have perfect credit or a lot of money down. Talk to a mortgage loan officer. You may be surprised that you can buy a home with little money down.
Homeowners Are Real Estate Investors
Any home owner in reality becomes a real estate investor. Whether home owners want to stay in their home for life or just a few years, their home should make them money. Many families only own one home at a time, but they keep moving up. Some of these families have made money from their homes by taking out the equity to pay bills. Other families bought more expensive homes, which went up in value more than the first home. For instance, a family bought a home for $105,000, sold the home for $230,000 and then bought a home for $300,000. The more expensive home went up in value the next year more than the first home. You can build your real estate wealth just by owning one home.
However, if you split your mortgage payments with other people, you don’t have to pay for all this equity on your own. Your tenants will help you make the payments and over time can actually buy the property for you!
How to Begin Real Estate Investing
Many investors start with a home to live in and then save money for a down payment for their first investment property. Here are some ways to skip the savings years, which most people never accomplish:
1. Refinance. If your home has gone up in value, refinance your home and use the equity for a down payment on an investment house. You must have sufficient monthly income to pay any negative between the rental income and the new mortgage payment. Some home owners have been able to purchase more than one investment house from one refinance transaction.
2. Move. Another way beginning real estate investors get their first investment is to buy a new home and rent out their first home. If you have great credit, you don’t need to put a down payment into a new home to live in.
3. Sell and Move. You can sell your home and buy two houses. Use your equity to put more down on the investment house than your personal home.
4. Buy a vacation or second home. Our cabin tripled in value in three years. We refinanced the cabin to buy more houses and also kept funds to pay for the mortgage, twice. The cabin pays us to enjoy it!
You can make money investing in real estate. Make a plan of action and get started real estate investing.
Copyright © Jeanette J. Fisher
Jeanette Fisher teaches how to find, finance, fix and sell. Free ebooks “Credit Tips” %2526lt;a href=”http://worryfreecredit.com”%2526gt;http://worryfreecredit.com “Flipping Houses” at %2526lt;a href=”http://doghousetodollhousefordollars.com”%2526gt;http://doghousetodollhousefordollars.com
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Written by Leo Love
Hi,
Hello and welcome.
Do you have the mindset to be a successful real estate investor? May sound like a strange question now, but when the heat is on and you need to close a great deal it will be the difference between failing and succeeding.
Now it doesn’t only apply to closing a good real estate investing deal, but also to how you go about find a deal as well. I have spoken in a previous blog about using your brain to help you. When you do this, you will have the right mind set. You will eliminate fear and procrastination that will hold you back, and slow you down from achieving your goals.
What I do is ask myself how can I do this? If any doubts appear I say to myself I can do this, I will succeed. Remember “it can be done”. I read about this concept and these four words from Mike Litman and it is a powerful thing to say to yourself at times of crisis.
It Can Be Done. Saying these words to yourself over and over will put you in the right mind set to become a successful real estate property investor as well as other things in your life. Try practicing this daily, I find it really helps me with real estate investing and I am sure it will help you as well.
I hope this helps you. Have a great day
To your investing success
Leo Love
PS If your family or friends are interested feel free to pass it on to them.
www.therealestateinvester.com
Male 48 yrs real estate Investor
Runs a building supply business
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Written by Max Plata
Once you purchase your first home you realize the satisfaction in owning a piece of real estate. For many people their interest doesn’t stop there and they decide they’d like to continue investing in real estate beyond the home they live in.
Investing in property can be a dynamic way of making extra income. For many people their investing experiences allow them to work less at their 9 to 5 job and instead devote more time to producing an income from their investments.
The first thing you need to consider if you look towards investing in the real estate market is what types of properties your dollars should be spent on. There are two choices that you’ll probably want to research. One is residential properties and the other is commercial properties.
Residential property includes everything from single family homes to multi-family dwellings. If you decide on investing in the purchase of a single family home, you’ll be planning on renting it out. In this case you might act as the landlord yourself, taking care of completing the necessary paperwork, including a rental contract as well as collecting rent payments.
If you decide on this route, you might be investing more than just your money. You’ll also be investing quite a bit of time, not only showing the property to prospective tenants but also coming to their rescue if there is a problem. Problems can range from a broken door look to a furnace that needs to be replaced.
If the prospect of investing that much time in your real estate venture is a bit overwhelming you can hire someone to manage the property for you. This saves you a great deal of time and trouble but it costs money as well, as you’ll have to pay them a salary.
This is almost always the case when investing in a multi-family dwelling. There are many details involved in running an apartment building or condominium complex. The tenants needs have to be addressed in a timely manner and in order to do this you’ll need to think about investing in a property manager.
There are many people who are experienced in this field and enjoy this type of work. If you are investing in a property that is worth a great deal of money, you’ll want to hire someone who has experience in property management to assist you.
When it comes to owning a property such as an apartment building the key to success is in keeping the units full thus ensuring a steady flow of income. This often means investing in advertising. Advertising can be done in several ways. A popular approach is to post signs on the outside of the building showcasing that there are vacancies. If the property is particularly affordable, placing the cost of monthly rent on the sign is a good idea as well.
Another form of advertising that works well whether you’re renting out an apartment or a house is investing in a newspaper advertisement. Many people who are looking for a new place to live scour the classifieds daily in the hope that they’ll find exactly the right rental property in the neighborhood they desire.
Investing in real estate can be a very rewarding experience and with the help of a seasoned real estate agent, you’ll be able to purchase properties that will yield you a profit year after year.
Investing Resources and Information
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Written by David Gass
Creative real estate investing is when investors use non-traditional methods to buy or sell a property. It refers to unusual methods for selling or acquiring real estate.
Investors frequently practice many different kinds of creative real estate investing.
Popular Techniques
Seller Financing: This is an unusual real estate investing technique where the property owner offers to finance the buyer. The owner typically lends a portion of the equity to the buyer and receives regular monthly payments. The mode of repayment may differ. It may be a principle only payment and interest may be fixed or variable, all depending on the contract agreed upon by both of them. Sometimes the buyer assumes the seller’s loan, which they write as an all inclusive trust deed. Loans for commercial property are known as assumable loans and residential loans are known as non-assumable. These two techniques are used widely.
Lease Options: This refers to a person signing a lease as well as an option to purchase the leased property within a fixed amount of time. The options usually last for short durations of time like 12 months and the buyer agrees to pay an additional amount as an option fee, which will be forfeited should the option not be carried through. There are lease purchase options that make it mandatory for a buyer to buy the property with the term of the option. The price of the property is fixed at the time of the agreement and no matter what the land value, the buyer must pay the amount stated in the agreement. Sandwich lease options are methods of buying a lease option and immediately selling it to another buyer for a profit, which is shared by the owners.
Other Techniques
When mortgages are defaulted, the owners may try selling the property to the lenders asking them to accept a lesser amount than what is owed in the mortgage.
Another technique is to buy bulk properties from banks and sell them individually for a small profit.
Using tax liens to acquire property is also a creative real estate investing technique. Investors buy tax liens from the government and should the homeowner default, the investor may foreclose on the house.
Some people buy a property that is ugly, old, or unfit, make a few changes to give it a facelift, and sell it for a huge profit.
The chance for being successful by investing in real estate is astounding. With careful planning and creative real estate investing techniques, a person can make a huge profit as well as build a successful career dealing in real estate.
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
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Written by Steve Gillman
Investing in real estate should be a pleasurable and profitable activity. Listen carefully to investors, though, and you hear not just success stories, but sad tales of stress and losing money. Here are some tips for keeping your real estate stories happy ones.
- Have a top price. Properties have a market value, and then they have their value to you. Many investors pay too much just because everyone else is doing so, and then they have negative cash flow month after month. Just because others are paying too much for duplexes, doesn’t mean you have to. Once you decide on a top price that works for your plan (which hopefully involves cash flow), start below that and don’t go a penny higher. The time to set your limit is before the negotiations start, not during them.
- Choose partners carefully. Investing in real estate can be an uncertain process. Too many decision-makers just make it more so. If you must have a partner, clearly define your roles before you start a project. Group decisions tend not to work well, and will cause you much stress. It is often best if one partner puts up the bulk of the money, and the other runs the show. Agree to a plan, then step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.
- Listen to what the market is saying. When the cabinet guy asked me for a decision I realized that I knew nothing at all about which cabinets people like. I asked him which ones home owners were most often choosing, and he pointed to one that three quarters of his last forty customers had chosen. Then that’s the one I want, I told him. Why would I argue with the market I am trying to sell to? I have seen sellers paint a home a certain color because they like it. That’s a quick way to reduce the market value of a home. What colors do the potential buyers like? That’s what is important.
- Understand the numbers. Investing in real estate is all about the numbers. If it is an income property investment, it’s about one number in particular: cash flow. Be aware of whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever. Ultimately, though just be sure that after every last expense you’ll have cash flow from the very first month. If it is a residential fixer-upper, know what it will sell for and what it will cost to fix it up - before you even make an offer.
- Don’t confuse investing with gambling. Investing in real estate isn’t gambling, or at least it shouldn’t be. There is risk, but unlike true gambling, the odds are in your favor. At least they should be, and you should be able to clearly see the outcome. This why you shouldn’t invest based on the assumption of continued fast appreciation. Over time, real estate values do trend upwards, but there is no guarantee that prices will continue up at any particular rate during a given time. Do deals in such a way that they’ll be profitable even if prices go nowhere. If values go up, you’re that much better off.
- Do the research. Understand the statistics and information you are looking at. It is possible that the real estate agent will show you only the comparable sales that make the property look more valuable. With a bit of your own research, and an understanding of how the various numbers are arrived at, you can avoid overpaying. Many counties have made researching prices easy, with sales prices online. Other web sites, such as the U.S. Census site, have information on population and jobs. Understanding these figures can mean not investing in real estate just before the town declines.
These tips, like all others, are just guidelines of course. You can “gamble” on rising values, for example, if you really did your homework and know the demand for housing in a town is about to explode. You might pass up a great opportunity too, because you refuse to go $500 over the top price you set. While having a few rules and guidelines is a good place to start, don’t let them take the place of thinking when investing in real estate.
Copyright Steve Gillman. For a Free Real Estate Investing Course, visit: http://www.HousesUnderFiftyThousand.com
No Tags
Written by Jeanette Joy Fisher
If you want to make money investing in real estate, you have to begin with a plan. Here are some ways to get started investing in real estate. Choose a plan that works for you.
If you don’t currently own your own home, that’s the best place to start. Many people never buy a home because they think they have to have perfect credit or a lot of money down. Talk to a mortgage loan officer. You may be surprised that you can buy a home with little money down.
Homeowners Are Real Estate Investors
Any home owner in reality becomes a real estate investor. Whether home owners want to stay in their home for life or just a few years, their home should make them money. Many families only own one home at a time, but they keep moving up. Some of these families have made money from their homes by taking out the equity to pay bills. Other families bought more expensive homes, which went up in value more than the first home. For instance, a family bought a home for $105,000, sold the home for $230,000 and then bought a home for $300,000. The more expensive home went up in value the next year more than the first home. You can build your real estate wealth just by owning one home.
However, if you split your mortgage payments with other people, you don’t have to pay for all this equity on your own. Your tenants will help you make the payments and over time can actually buy the property for you!
How to Begin Real Estate Investing
Many investors start with a home to live in and then save money for a down payment for their first investment property. Here are some ways to skip the savings years, which most people never accomplish:
1. Refinance. If your home has gone up in value, refinance your home and use the equity for a down payment on an investment house. You must have sufficient monthly income to pay any negative between the rental income and the new mortgage payment. Some home owners have been able to purchase more than one investment house from one refinance transaction.
2. Move. Another way beginning real estate investors get their first investment is to buy a new home and rent out their first home. If you have great credit, you don’t need to put a down payment into a new home to live in.
3. Sell and Move. You can sell your home and buy two houses. Use your equity to put more down on the investment house than your personal home.
4. Buy a vacation or second home. Our cabin tripled in value in three years. We refinanced the cabin to buy more houses and also kept funds to pay for the mortgage, twice. The cabin pays us to enjoy it!
You can make money investing in real estate. Make a plan of action and get started real estate investing.
Copyright © Jeanette J. Fisher
Jeanette Fisher teaches how to find, finance, fix and sell. Free ebooks “Credit Tips” %2526lt;a href=”http://worryfreecredit.com”%2526gt;http://worryfreecredit.com “Flipping Houses” at %2526lt;a href=”http://doghousetodollhousefordollars.com”%2526gt;http://doghousetodollhousefordollars.com
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