Beginning a hobby or career in real estate Investing doesn’t have to be so complicated or such hard work if you will only begin with what you have, right where you are at this moment.
Look for someone who really needs to sell their home and solve their problem. One of the fastest solutions if they are about to lose the house is to take over their payments on a subject-to contract. By giving them some walking money, they can afford to move and still have the cash to rent another home.
Then, clean up the property, lease it out to a future buyer on a rent-to-own basis which is called a Lease/Option. You get to collect an up-front, non-refundable deposit. Three to five percent of the future purchase price is a good figure to shoot for. You can actually do this every month and make some additional cash, or concentrate on this method as a full time lifestyle.
Have the renter/buyer sign a contract. You pocket the difference between what you’re paying the original owner and the amount you’re collecting from the new renter/buyer. The spread is higher on nice, expensive homes in great neighborhoods, so don’t be afraid to search in these areas.
This is a good method of collecting extra cash flow every month. There is no limit to the number of these deals you can do other than your time and effort.
Call on every “For Rent” ad in the local paper and just ask if they would be willing to sell the property in a couple of years if you sign a long-term lease. If you get a yes, negotiate a fair purchase price, sign a contract and find a renter/buyer. It really is that simple. Of course, you want to have a lawyer check out the contracts on the first deal to protect both parties.
Try to get at least $150 more per month than you are paying. Also get a minimum of $1000 above and beyond what you have paid out as the option deposit. You don’t want to be working for free, do you?
Let’s look at some figures from actual lease/options. A couple were behind on their notes because he lost his job, and she didn’t make enough to pay all the living expense. The stress was causing marital problems and they wanted to sell, but the house stayed on the market for six months with no takers.
They were getting desperate when a neighbor mentioned the situation to her church group. One of the group’s members had a son who was looking for a house that could be leased with an option to purchase in a few years. He and his wife didn’t have a lot of money for a down payment, but they knew that buying was better than renting.
After looking at the property, they decided it would be a perfect first home if they could manage the financing. The couple offered $1000 as a non-refundable option deposit, if the current owners would give them two years to qualify for a new mortgage. The timing was right and the current owners accepted the offer. The monthly payment they agreed on was $200 less than similar house rentals in the area.
Both couples were happy and they signed contracts for the deal the next day. The new couple didn’t even move in. They saw an opportunity to make some quick cash and a good monthly cash flow, so they lease/optioned the house to another couple for $5000 down with payments that were $300 above their obligation.
If this new couple closes on the deal in 1 year, they will have earned $5,000 up front and $3,600 over the course of the year in monthly cash flow. By the way, the sales price was $12,000 higher than what they had agreed to pay the original owners. Added up this equals $20,600 for just a few hours work.
These deals exist in every town in the world. You can do these until you build up your bankroll and monthly cash flow. There are no geographical limits. Travel the world doing deals, living where you please and life is no longer on a budget.
John Long
http://www.articlesbase.com/non-fiction-articles/tips-for-investing-in-real-estate-50755.html
Tips on real estate investing???
I would really like to start investing in real estate and I was just wondering if any experienced investors could give me a few tips on how to get started? For example: What is the best and easiest way to buy my first property? Thanks for your help!
Try to find a mentor if you can. Real estate can be great or a headache. Try to find a local real estate investment group / club / assoication. Also, educate yourself and understand the basics of real estate at a min.
Best of luck,
Angela
http://www.ratraceclub.com
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I specialize in real estate investing. If you want I can help you out. E-mail me to learn more: jamescastle11@yahoo.com I can help get you started.
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I am a real estate investor. Your best bet is to read the real estate investing section of your local bookstore. However, if you want to be spoon fed, hand held and given the opportunity to own positive cash flow properties with as little as 17k down and teach this method to other people for money, e-mail me. There is a program that does everything for you for $200/mo. Plus I’ll be able to answer any questions and walk you through some deals for free.
Regards
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Satar Naghshineh
satarnag@amirifinancial.com
http://www.amirifinancial.com
California Licensed Real Estate Broker and Investor
http://biz.yahoo.com/weekend/weakhome_1.html
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A lot of real estate investors are paying their investments off with the United 1st Financial MMA program. If you own a home and can get a variable home equity loan, you can pay your 30-yr mortgage off in 10 years or less*, and can include your total outstanding debt (car, student loans, etc.) in this payoff. Your save hundreds of thousands of dollars in interest, no alteration to your current lifestyle , no refinancing, and it’s not a bi-weekly or debt roll-down program.
This program offered by United First Financial (www.u1stfinancial.com) is a web-based software and has a 100% Guarantee.
For more information, please contact: Eva Morgan, 808-368-6832 or eva@nomortgage.info.
References :
United First Financial http://www.u1stfinancial.com
Be prepared to have a million people trying to sell you on their pyramid schemes, their marketing tools/techniques, or even just their advice. RE Investing is the new buzz word and there are even more late night infomercials about the subject than ever before.
The first thing you want to ask yourself is what kind of investing you want to do. Do you want to become a landlord? Do you want to flip houses? Do you want to get into commercial real estate?
Once you’ve decided which investment model is best for you need to learn your local market. The easiest way to do so is to read your local newspaper’s real estate section, check the internet, and just keep yourself aware of what is going on in general. Drive around neighborhoods, talk to people, make yourself known. Information is key. If you really want to learn as much as you can consider becoming a realtor. There are some upfront fees involved but its a great way to learn the business, the contracts, and the process. This will especially help if you want to rent your own properties or buy/sell the houses you plan on turning around. This may not be an option if you work a highly demanding job.
That is another thing to consider. What do you do now to pay the bills? Do you have lots of free time to deal with the commitment that a flip will require? Being a landlord has periods of intense participation with (hopefully) long periods of sitting back and collecting rent checks. If you’re in a job now that pays well but demands alot of your time it may be wiser to spend more money on a home that will be turn-key even if you’re not getting positive cash-flow right away. You’ll reap the benefits of even mild appreciation if you do it right. (This is for rental situations.) If your job is demanding and you want to flip be prepared to pay a project manager to oversee the job so that it gets done right, and you don’t have to be babysitting the contractors all the time. (They WILL walk all over you if they see you’re not attentive.) Its all about comparative advantage. If you’re better paid being a doctor, lawyer, or whatever, use your money to make sure the job is done right and don’t let your primary job suffer because you’re running around trying to chase contractors all over town.
If you’re only working part time now, or want to make investment a full time gig be prepared to invest most of your time in the operation because its the only way to keep costs down and maximize your profits (which you’ll need to do to stay afloat in the beginning.) RE Investment is a brick by brick building process. You start with the foundation and one day you’ll realize after many years you’re staring out the 2nd story window at this thing you’ve built up. There’s no such thing as overnight sucess, don’t buy into any of that BS that people will feed you about such a process. Anything that comes quickly and easily is built on a foundation as tenuous as a house of cards.
Also, don’t let some guy in California sell you his techniques. Although certain things carry over the markets are very very localized, so its best to learn your own market from people who work in your own market. Sometimes working your regular job and spending your free time with an investor who appreciates the help and is willing to teach is the best the starting path towards success.
If it sounds too good to be true, it probably is. But over time all the hard work you put into RE investing will pay off. Good luck.
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Baltimore RE Agent.
getting help from a real estate agent will definitely help. this directory is really helpful: http://www.idxbroker.com/news/256_IDX,_Inc._Introduces.php
just click on your state.
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