Real Estate is a flourishing investment. When non-traditional and creative ideas are used to sell and buy properties, it is called creative real estate investment. The typical way is to buy a house using cash but a middle class American cannot afford the complete payment; neither can the investors buy property at such high costs giving complete money. Here we will discuss some of the creative and innovative ways to invest prudently and efficiently in real estate.
1. Seller Finance
Seller finance is an unusual real estate investing technique. In this method the seller becomes the lender and therefore the buyer is not entitled to pay the whole amount. A certain portion is lent to the buyer. Thus the seller acts as a bank. The agreement concerning this investment will govern that in what installments will the buyer have to pay. It will also govern whether it is principle only payment or there is a fixed or variable interest with it. Another method of seller finance is where the buyer has to assume the seller?s loan.
2. Option
An option is an agreement between the buyer and the seller and is an effective tool of real estate investment with little money. An option is actually the right for the buyer to buy the property at some predetermined future time, the price for which is fixed now. The buyer is entitled to pay the option premium to the seller by the time he has the option. When the time comes to buy the property, buyer has the right to withdraw without buying it and selling the option to someone else. The time for the agreement can vary according to the rules.
3. Lease Option
This is composed of a rental agreement (lease) and an option. The lease is a rental agreement between the owner and the potential tenant. The lease payment is usually a bit higher than the normal rented property payment but leasing allows you to avail the state benefits as if you were the home owner.
4. Short Sale
Short sale is also called foreclosure. When the owner has not paid the mortgage loans for some months the property becomes default. The lender then files the notice of default as a public document. The owner then contracts to sell the property with the portion less to the mortgage goes to the lender.
5. Property buying in Bulk
This is a very useful method of creative real estate investing, especially when you have certain amount that needs to be invested. As the title suggests, it is concerned with buying property in bulk (large quantities). This allows you to get them at reasonably lower rates than usual. Two options can be considered afterwards. First is to sell it as it is with a small profit or markup. This is known as wholesaling. The other is to sell the property in smaller portions and thus, increasing the markup to a great extent.
6. Hard Money Lenders
Hard money lenders are very useful especially when the investor do not have strong income or credit scores. These hard money lenders are ready to finance projects which are unique and for which finances from other sources are not available. These lenders also do not charge any up front fees. The only thing they look for is the business plan.
I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.
Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to
Real Estate Investing Blog.
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