Real Estate Investing Information that Works! since 1995
If you live in a major metropolitan area, like I do, it will be very hard to drive all over town to look for houses. For me, it can take an hour to get from one side of town to the other. You’ll quickly find that you are spending more time driving than actually looking at houses or talking to motivated sellers. Don’t confuse busy work with productive activity.
You should get to know your farm area like…
With the recent trends to the foreclosure inventory, are you prepared to find your own dirt-cheap houses?
Now is the time to learn to get your phone ringing with motivated sellers and to learn to negotiate your own deals directly across the kitchen table from the people that own the house. Now is the time to prepare yourself for action so you will not need to rely on Fannie Mae or HUD!
You know what’s even better than earning extra income this month? Earning extra income every month. While it’s true that flipping houses can be a great way to turn a quick profit, you make that profit just once per property.
A buy and hold strategy provides a safer option because you’re creating a steady stream of predictable passive income.
My last article, Private Lenders = Cash Flow + Infinite Returns, focused on buying and holding real estate using joint ventures. This article focuses on financing strategies to make short-term real estate ventures easy to finance.
When you use private lenders instead of hard money, you can pay a great rate of return, get in the game, and leave a lot more profit on the table for yourself.
I found from experience that if I don’t close the seller at the first meeting, the chances of getting that deal are small. That’s why it’s important to do everything possible to get a signature at that first meeting.
Here are some examples of some clauses to incorporate into your real estate Purchase Agreement. Get it reviewed by an attorney or title company to make sure it complies with your local laws and modify where necessary.
When a real estate investor works directly private lenders, you get the winning combination for cash flow. Both parties are critical to the overall success of the investment–and both parties benefit.
The private lender gets a strong return on his money with none of the work. The investor enjoys an infinite return because he used none of his own money in the deal.
There’s an old saying: “A verbal contract is as good as the paper it’s written on.” Once you find that elusive motivated seller, you’ll need a document to “tie up” or buy the house using a Purchase Agreement or contract.
Write up EVERYTHING that you and the seller have agreed to verbally. Unless you have it in writing and signed, you have NO agreement at all.
Knowing you have a list of potential buyers makes the job a whole lot easier and gets you cash a whole lot FASTER. It may seem crazy to line up investors even before you even have a house, but believe me, it’s a necessary step!
Think about this for a moment – suppose you find a great deal with a huge profit potential. You know you can get a contract on it. Great. But you can’t make ANY money until you have…
Most investors I interact with want to eliminate the need for bank financing, but the question I am most often asked is Jim, “show me the money.” (This line became very popular after the Jerry McGuire movie.)
Well, the truth is that I do not have a money tree growing in the back yard, so I cannot literally show you the money. I will, however, show you some strategies to help you find your own money and, better yet, start to attract your own money…
As you’re starting, you will be learning different methods of making money as a creative real estate investor.
Wholesaling, also called “house flipping,” is one of those “must know” methods. It probably not be a method that will make you rich, but it is certainly a method that you must know in order to turn certain types of deals into fast cash.
You can expect a profit of $5,000 or more on every flip…
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