The profit motive can bring out the best of us, encouraging us to use creative tools such as real estate options, but can also bring out the worst of us. There were a couple of friendly rivals among Exchangors a few years back named Cliff and Art. Art was far and away the most successful financially, but Cliff was the more artful – as in artful dodger – of the two. No matter how hard Art tried to best Cliff in a deal, he never quite pulled it off.
Many readers of this letter may not be able to use either seller financing or investor financing to buy houses because of lack of investors or sellers who would be willing to provide financing. But, by using Options, they can buy, sell, and hold houses without the cooperation of either investors or sellers.
The essence of creative financing is to be able to transfer equity between buyer and seller with little or no money down. This requires at least two highly motivated parties who are willing to work together, and knowledgeable enough to make a deal. When a third party “deal-maker” is added to the mix, part of the profit can be carved out without any investment at all. Learning how to become that third party is a major key to being able to earn profits on every buy/sell/lease/Option transaction. To jog your imagination, here are ten ways that a deal can be made using creative financing with very little cash; but you’ve got to propose it.
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There are two main reasons why landlords offer tenants a Lease/Option on rental houses: They want higher rents, but don’t necessarily want to sell their house; or they do want to sell their house and want to give the occupant a chance to either clear up bad credit scores, or save up a down payment, or earn some kind of rental credit attributable to rents paid or improvements made.
Many of the people who are now in trouble with negative cashflow and dropping equities should have been looking at Option contracts. Not to be confused with Lease/Options, pure real estate Options are merely purchase contracts that can tie up a house, but that allow the person who buys the Option a chance to "test drive" a house to see if it can be sold before committing to closing on it. Instead of confronting high payments in a falling market, the Optionee simply walks away unscathed. Why anyone would run all the unnecessary risks
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You can earn money working from home when you learn how to master lease real estate. Master Leasing is a way to earn money every month from real estate that you don't even own. Usually a Master Lease requires no money down.
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Because of foreclosure sale competition, you have to “firstest with the leastest” to make money. Pre-foreclosures are one way to do this. Try to buy a CD listing of out-of-area owners from the tax collector Make low offers to buy properties with unpaid property taxes by sending letters to delinquent owners. In the following paragraphs I’ve inserted some distress market approaches that I extracted from my little booklet called “Fifty Nifty Ways to Buy Foreclosures from Distressed Owners and Lenders”. These are to help you to structure transactions that will be acceptable to the other party and profitable for you. All of them won’t work all the time, but, it will pay you to try to build on them to improvise concepts that you will be able to apply in your specific area:
Continue reading “Getting Ahead In Today’s Foreclosure Market”
Failure to reach agreement as to value can break a deal wide open, so it pays to negotiate around this obstacle. This pretty well sums up the way that negotiation techniques earn their keep when buying or selling, and can secure quality homes at wholesale pricing.
There are three opportunities with pre-foreclosures. The worst people to deal with are dead beats who are going to ride out the foreclosure and refuse to move out after the property has been bought either before or at sale. The best people to deal with are families with a large equity and otherwise good credit record who feel terrible about not being able to make payments.
