Investors who are experienced with business acumen and the ability to make the best use of any opportunities that come their way will tell you how lucrative creative real estate investing can be. This is a business that needs no licenses to begin operations; and in some cases, people have made fortunes without investing any of their own money. How about that! Over the years, several investors have tried and perfected the various creative real estate investing techniques such as lease options, bird dogging, flipping, rehabbing, short sale, foreclosures, tax liens, subject to, investing in notes etc. like they say where there is a will there is a way is true as far as creative real estate investing is concerned!

Using creative real estate investing techniques, investors have managed to amass great fortunes without themselves investing much capital. Is this possible in any other business, which requires no license? No, I do not think so!

Creative Real Estate Investing

Have you heard of a method by which you can earn an interest of 15% to 25%, which is a low-risk investment that is secured by a deed to a real estate property whose value may be 10 times (or more) the value of the investment? Purchasing tax liens are the best way of securely investing your money, as they have the added security of being a first priority lien.

Tax liens are property tax arrears that are sold in an auction. The investor who buys the tax lien can charge an interest penalty if the lien is paid off by the property owner or in case of default can foreclose on the property, which is worth so much more than the tax lien. A loan-to-value ratio of 10% is an amazing return on investment, would you not agree? You could buy a tax lien worth $7000 and could end up owning a property worth $70,000. And you do not require any license, just the patience to participate in an auction and buy the tax lien. 

Investing in notes is another creative real estate technique. Some investors love to deal with discounted notes and making a profit. Let¡¯s say they buy a note worth $300,000 from a person who needs cash desperately and that he agrees to sell the note for $270,000. The investor then uses the note as collateral to buy a property worth $300,000, thereby buying the property for actually just $270,000 and making a cool profit in between. If he were lucky, he could sell the property to someone for a profit.

Lease options are another great way to buy and sell properties without actually investing much capital. John came across a property worth $250,000 with an option to buy, which he felt could get a much higher price. He signed an option and in between made a deal with another interested investor. He sold the property for $265,000 within a few days of buying it, making a cool profit of $15,000. 

Seller financing, assuming existing mortgages, etc., are other creative real estate investing techniques that can be used by investors.

Some investors use a rent-to¨Cown or a lease purchase agreement where they do not just option a property but have to buy it within a predetermined time at a predetermined rate.

Many are the investors who have used bird-dogging, flipping, retailing, rehabbing, short sale, or pre-foreclosures to make an amazing deal where they end up with a considerable profit. Rehabbing, however, requires a lot of expertise and at least a basic knowledge required for estimating the actual cost of the rehabs. Short sale requires great negotiation skills, as you have to deal with the seller as well as an anxious lender. Flipping properties and retailing requires a consistent supply of motivated sellers as well as legitimate buyers or investors to do the flip with. Nothing comes easy. Hard work, experience, determination, and a will to succeed no matter what the odds are absolutely essential for any creative real estate investing. 

It is, however, recommended that you have an attorney who can understand creative real estate deals and give you valuable advice when needed. It will be an added advantage if you educate yourself sufficiently enough to understand the basic legal requirements for signing a deal or an agreement. Marketing your services and ensuring you have a consistent supply of motivated sellers, having the ability to seize any opportunities that come your way, having the ability to negotiate deals that suit you and using creative real estate investing techniques can guarantee you a lucrative business with great returns on your investment sometimes much more than you ever imagined possible

 

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