Real Estate Investing Operates in an Imperfect Market
You can find real estate bargains as if you were shopping at an outlet store. One of the features of securities like stocks and bonds is that they are sold in a way that at any given point in time most people who buy a specific stock will be paying the same price. Real estate is different. You can have two identical homes on the same block. One might be bought for 175,000, and the other might be purchased by an investor from a motivated seller for 140,000. When you use the negotiating...
Our Bias in Real Estate Investing
There are many ways to make money by investing in real estate. We want you to understand our bias so that you can take the best ideas in this book and leave behind any you do not like. We don't like doing rehab projects. As a matter of fact, if the property takes more than a simple paint and carpet cleanup, we typically will either flip, that is, sell, our contract for a quick pay ment or sell the property as a handyman special. We just don't like getting bogged down in overseeing or doing the...
Anyone Can Make Big Money Investing in Real Estate
What would it mean for you and your family if you were able to earn an extra 25,000 this year by investing in real estate How about an extra 50,000 or even 100,000 Wouldn't it take much of the stress and worry out of your life Would it improve your sense of freedom and security We're just two ordinary guys one an ex-mechanic and the other an ex-jock. Yet, by using the ideas in this book, we've been able to create both healthy monthly cash flows and large net worths by buying homes in nice areas...
Lesson 1 Always Build an Escape Hatch into Every Deal You Do
One of the most important safety steps you can take to protect yourself in any real estate deal is to always leave yourself a painless out so you can walk away from the property if it turns out the deal isn't as good as it looked on paper. Ask any seasoned real estate investor what's the most important consideration they make before they enter into an agreement and they will answer, To make sure I know what my exit strategy is if I have to get out in a hurry. Think about a pressure cooker. You...
Purchase Option Buying Strategy Five Owner Carry Financing How to Turn the Seller into Your Bank
The most well known creative buying strategy is to have the owner carry back all the financing. All the earlier Purchase Option buying strategies have in a sense some form of owner financing involved. Whether it be a lease option or an equity split or a subject to financing purchase or a big money cash close, the seller is helping in some way with the financing. This final explanation of owner-carry financing will outline three more ways to use owner-financing methods to help you leverage your...
The Three Best Ways to Find Subject to Deals Fast
Rarely will you find a seller who is going to sell you his property subject to the existing financing by going to Open Houses. Usually, you will find these types of deals by advertising and getting highly motivated sellers to call you. The two most common types of motivated sellers who will be willing to sell you their property subject to the existing financing are sellers who are behind on their payments and headed toward foreclosure and sellers who have little or no equity. Here are three of...
Five Purchase Option Buying Strategies
In this chapter, you'll learn all five of the Purchase Option buying strategies. You'll notice that all five of the strategies have the following four things in common 1. Each of the strategies is designed so that you have none of your own money invested in the property. You're going to learn how to transact deals with no money down from your own pocket. And you'll learn about the best sources of funding to close your deals. 2. Each of the strategies is designed to limit your risks. In the real...
The Nine Essential Contract Clauses of Any Owner Carry Financing Deal You Do
The following nine clauses and insider tips apply to any owner-carry deal you do, whether it be a big money cash close, or a straight-owner carry, or any other owner-carry deal. Make sure you go through this list carefully before you ever find yourself sitting down face to face with a seller negotiating a deal. Also, come back to this list when you are having your closing documents drawn up on any owner-carry deal. The clauses will help make you lots of money and save you from heartache. A word...
The Power of the Take Away Close
Another name for negative phrasing is called a take away close. Here is an example of what negative phrasing sounds like Investor What else have you tried to sell the property Seller I listed the property with a real estate agent for six months. Investor And that worked really well Seller Not really, no. We never found any serious buyers that way. Investor Had you thought about just relisting the property with that agent for another six months Seller No, we don't have six months to wait for...
The Three Biggest Pitfalls of Buying Subject to Financing and How to Sidestep Them
While there are many fine points that you need to be aware of in any real estate deal, buying a property subject to the existing financing has three pitfalls that are so important that we will now cover each of them in turn. We'll also share with you the best ways we've found to sidestep these three known pitfalls so that you can invest with as little risk as possible. Pitfall 1 The due on sale clause. The single biggest pitfall of buying properties subject to the existing financing is an...
