Everyone's path for getting started in real estate investing is different. Many start down one path, then change courses later as they learn more and discover a better way. There is no one right way to get started. Your background and resources (in time and money) will have a lot to do with the paths you take. One things is for sure, those to DO get started in real estate investing are building a better future and financial security for themselves. Read how one CashFlowDepot.com member, Hal Cranmer, get started in real estate investing.
Now, more than ever, there is a great opportunity to buy houses subject to the mortgage (with a little twist). It is harder for sellers to sell their house to a buyer who gets new financing so sellers are more open to “creative” ways to get their houses sold fast. But you should not buy Subject-To the mortgage... here's why...
Here’s something you may not know about me, Jackie Lange. After my son and daughter were born in 1980 and 1982, I made the decision to be a stay-at-home Mom for a year. A year turned in to 12 years. Twelve years of Sesame Street, Cub Scott Leader, Girl Scout Leader, home room Mom and grinding organic wheat to make fresh bread every day. Read the rest of the story to learn what happened next....
Real estate negotiations do not need to be about the lowest price. People are forever trading off one aspect of a property or transaction for another, depending upon their needs, prior experience, and personal goals. Some of the things they trade off include:
As Boy Dylan sang, 'things, they are a-changing' and we've got to be able to adapt to them. First of all, we've learned that national news headlines don't always affect our local situation. In some regions, real estate is booming. In others, it's depressed. In some areas, state and local tax policy is aimed squarely at real estate profits and values. In other states, real estate has privileged status. We know now that the selection of the political and economic environment in which we invest in real estate can make a big difference in how much money we make.
Learn creative ways that you can use other people's credit to acquire more real estate. You do not need to borrow money from banks to buy houses.
OPM -- Other People's Money -- is the magical ingredient that builds fortunes out of dreams! The mistake most people make is to equate OPM with Debt. That represents a failure of the imagination. OPM can take on many forms. It can be EQUITY in the deal. It can be an Option. It can be a Management Contract. It can be Partnership Interests or Stock. It can be Inventory or personal property, or even toys.
Forbes article discusses the best cities for investing in 2015 and what the best indicators are for picking a winning area. The article talks about why buy and hold is a good strategy now.
There are many ways to buy houses without going to the bank to get financing. Many sellers will be glad to get your offer to buy their house subject to the mortgage or with seller financing... you just need to ASK! See this example to learn how to get $1000 per month in cash flow with a $40,000 pay day later.
There's little difference in finding Lease and/or Option opportunities and in finding properties to buy. I prefer to 'cold canvass' neighborhoods on foot and through flyers delivered door to door. Most other people mine the newspaper advertisements for hidden gold, court house records and 'bird dogs' that turn up motivated Sellers. All these sources work with Leases and Options if the Buyer/Lessee/Optionee takes the time to delve into the motivation of the other party. But there are clues all along in the process.