There are at least 1000 articles (minimum possible figure I am confident about), posted by different writers, referring to real estate in general and many to creative real estate investing in particular, though obviously using different terms, available online. And here you go with another one in the league. And in spite all this reading, have you actually found out a concrete answer to the question sought? Assuming that you are still reading this article and you've read at least 3 to 5 before, the answer is quite apparent: you are not satisfied. Fair enough! I mean that is exactly what real estate as a field has to offer.

How do you define creativity? No I am not trying to make you think like an artist impelled to draw a building to be creative in real estate field but all I intend to achieve by the end of this article about creative real estate investing is an open mind and a clear vision which is essential if you really plan to make it big in the mentioned field. So let's come to our question, how do define creativity? Though there are no strict parameters but one thing is for certain, a true masterpiece is considered creative if the buyers realize it and are willing to spare whatever is required to make the deal. So basically creativity lies in the eyes of admirers. A chess maniac would not be interested in buying baseball equipment, even if they are exquisite and you are offering a throw away price. Just because this player or rather a chess player is simply not interested and thinks that your deal is not even worth a penny doesn't proves that your offerings are actually bad and this exactly is the problem encountered by most of the struggling members of real estate investing.


Invest In Knowing

The logic is simple, before sitting for an exam you must know your course material. So before trying to make a creative real estate investing deal struck, you ought to have a clear understanding of how the market works and what are people interested in and are looking out for. Collate and assimilate whatever knowledge you can get form various sources. There are seminars organized, free resource material available online, mentors from whom there is ample to be picked up related to creative real estate investing, so just roll up your sleeves and before you make the final jump make sure you have enough back up knowledge.

The Mirage Effect

Have you ever been to a desert? Even if the answer is never, am sure you must have heard about the mirage effect i.e. an illusionary vision of water created in the otherwise deserted soil. The uninterested buyers or sellers create the illusionary vision in the real estate business. They are hardly interested in selling yet have a major tendency to eat up bulk of your time and resources. So the deal is to find the actually interested parties. The creative aspect of real estate investing here demands a prior identification of the true buyers and sellers who are ready to spare with their property instead of those who are just floating around to study the market nerve. This is what creative real estate investing refers to. 

Create demand

No I am not talking about creating overall demand in the market, am just referring to creation of demand for your offerings if you are serious about mastering the art of creative real estate investing. How many ready buyers or sellers do you have? 3 or maybe 5, if that's the answer than you fall within this category where because of lack of demand you end up compromising on your terms of trade. To make money in creative real estate investing, it is important to be in a stronger position. So create requisite demand and have at least 10 ready parties, so that you can pick and choose. This happens only by identifying the right ones through a good marketing strategy. Even a slight delay in responding to a query might mean a buyer lost. The marketing message and medium must be carefully devised to meet your segment's requirement.


Constant cash flow

I don't think that anybody can operate smoothly in a constant crunch. The dire need to make money makes your vision blurred and opens up all the hidden pits. So to get the maximum benefits from creative real estate investing, focus on spending less and making more money. As it goes use your brains and not cash as an investment to make money in real estate. For instance play with the available interest differentials offered by various sources to make money. All you need is a good credit rating (and even if you don't have it use others you have earned it as partners), to earn a low interest rate from a particular source, this cash than can be used to make money by reselling the property purchased on this lower interest rate at a comparatively higher one. 

Now that you have a better understanding of almost all facets ad secrets of creative real estate investing, employ the tricks and make your knowledge work in your favor. All the best.

 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win $100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com               

 

 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page