The best investment opportunities for you will depend on your goals and objectives. Investment strategies that are a fit when you are first getting started won’t necessarily make sense for you once you’ve gotten your investing career launched.
Investment Opportunities for Beginners
One of the simplest ways to get started investing is by learning how to structure sandwich lease option deals. The reason this is one of my favorite strategies is that it doesn’t take any cash or credit and there are plenty of motivated sellers that you can work with. To put together a sandwich lease option, you are going to match up a motivated seller with a tenant buyer and make a profit for doing this.
Look for a motivated seller who is looking to get out from under their payments and who is open to your creative offer. You’ll structure a long-term lease of five to ten years where you agree to cover the existing mortgage by paying rent to the seller. Obviously, for this to be one of your best methods of buying real estate, the amount you pay to the seller needs to be LESS than the amount you can rent the house out for.
You’ll also get an option to purchase the house for either the amount the seller owes to the lender or for about 80 percent of current market value. Make sure your option price is low enough so that you can offer the property to your tenant buyer on a rent to own basis along with the right for your tenant buyer to purchase from you at a higher price.
Investment Opportunities For Intermediate Investors
Once you’ve done a few lease option deals you’ll be ready to move on to short sales and flipping properties. Short sales involve negotiating with the lender to accept less than what is owed so that you can resell the property to someone who will live in the house. For making quick cash, this can be one of your best techniques because you keep the difference as your profit.
Flipping or wholesaling homes are two other appropriate techniques for intermediate investors. Most successful flips or wholesale deals involve finding homes in poor condition and then either immediately reselling them to another investor, or fixing them up to sell to a retail buyer.
Investment Opportunities For Big Thinkers
If you like investment opportunities where you can make millions instead of “just” tens of thousands of dollars, then you may want to consider investment opportunities in the commercial real estate arena. You can choose from apartment buildings, self-storage, mobile home parks, office & retail and other commercial investment opportunities.
So, now that you understand a bit more about creative real estate investing, you’re going to have to decide which type of deals you want to be going after. No matter which of the various investment opportunities you decide is best for you, don’t make the mistake of failing to take action on making your dreams come true.
At Daniel Kalenov, Global Diversified Partners we can suggest you more information about using specialized skills to manage your real estate investment business. We help people take control of their financial well being by educating them on the benefits of investing in tangible assets and by altering their perception of what “smart investing” means. The firm has a global focus and we’re opportunistic but prudent.