creative real estate investing opportunity
The use of unconventional methods for buying or selling property is known as creative real estate investing. Various types of creative real estate investing are being applied today. Some of which are as follows:
Bird-dogging:
A bird-dog works on commission. He gets the best deals for both buyers and sellers and earns a fee for his efforts. Since a bird-dog is not investing his own money, he does not run the risk of losing it. This is a great creative way making money in the real estate market with taking minimum risk.
Seller Financing:
Seller Financing is a method of creative real Estate investing. It is a loan provided by the seller of a property to the buyer in order to cover all or some part of the sale price. Seller financing is advantageous for both parties especially for large chunks of land that cannot find conventional lenders. Seller financing reduces the closing costs for both the buyer and the seller. The seller could get a higher price whereas the buyer finds it as a great option if he does not qualify for a normal loan. There are also some disadvantages associated with this mode of creative real estate investing. the buyer may end paying more than the actual worth of the property since he does not enjoy mortgage insurance or property appraisal. The Seller may not be able to get a through check on the financial and credit background of the buyer which might lead to default in the future.
Wholesaling:
In this type of creative real estate investment, a person makes a deal for selling the property. When this deal is secured, he sells the deal to an investor. In this way the property is finally bought by the investor. Technically, it’s akin to brokerage since the person in this case is just charging his fee for finding a seller and then selling his property to the buyer. Wholesalers have a difficult task since they must find both the sellers and buyers for the same property. A whole lot of effort is required for finding a suitable property, convincing the seller to make a deal with you, and then selling the deal to the final investor.
Lease Options:
Lease maybe termed as a rent-to-own agreement. Simply, leasing means that an individual rents an item or a property for a specified period of time. When this period is over he has an option to buy that item or property. If someone does not qualify for a regular mortgage due to adverse credit rating, he can go for a lease option.
In these hard times lease options can be a suitable creative way of making money in real estate. Due to the economic slowdown, people are finding it difficult to sell their properties and more and more people are going for leasing.
Lease option gives the control of the property to the investor while having to pay a minimal sum of cash. In case the real estate market goes up, he can exercise his option to buy or he can have the property sold to another buyer. Whatever seems fit to him
If a person has a lease option and he wants to make extra money, he can sub-lease the property to other potential end-users.
Buying from banks:
This is also a very useful technique of creatively investing in the real estate market. The seller buys large chunk of property from banks. This property is then sold to individuals in smaller units. A person can also buy an old worn-out property and then sell it after renovating and refurbishing it. This can also bring a huge profit.
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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
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