4 Ingenious Real Estate Investing Methods
♫ January 5th, 2010 3:23 amThe real estate investors are still looking to invest with the limited amount they have but with new creative methods. Listed down are some of the creative methods used in the real estate market.
Options
So you are a real estate investor who is short of cash in hand, this “Option” is definitely a useful choice for you. In this agreement, the buyer and seller comes to term and set a price for the land, which the investor will buy in future. The seller will receive a premium as he is offering the land on easy terms, with dates set for future. This premium will be given till the time Option is valid. The investor has the choice to buy that piece of land or to sell Option to some one who is willing to buy the Option from him. The most important aspect of the Option is the time period, for which the Option remains valid; this time is to be decided mutually.
Seller Financing
This tool is probably the most frequently used by real estate investors. In seller financing, the seller also becomes a lender. The seller and buyer sit down on the table to decide the terms and conditions, which include the sum of the payments of installments and its repayment schedule.
Buying in Bulk
If you are a real estate investor with a bag full of cash, then you might look in to buying the land in bulk. Buy a large piece of land, it is same as going to the mall on Sundays and buy the items in bulk. What buying in bulk does for an investor is that he gets the land for reasonable prices, and gets the land at cheaper price than he might have, when buying the land individually. Now to sell the property he has an option;
1. To sell the large piece of land to a single owner with a small markup profit.
2. To sell the land in small sizes to different owners, this option is more profitable compared to the previous option.
Leasing
In leasing the buyer and seller sit down to decide the amount of payment, but the different leasing option is, that the buyer is allowed to stay at the home, when the deal starts and then owns the place when he has returned the payment. This option has 2 benefits for the investor, looking to buy a home.
1. Payment is to be made on installments
2. The buyer is allowed to stay in the house
One drawback is though that the investor will pay a higher amount than actual selling price of house, and that is due to the fact that the buyer is reaping benefits of staying in a house.
