| No Money Down and other 'Creative' Real | | | | estate |
| Estate | | | | |
| | | | investing techniques being known by |
| Investment MethodsFor many years, investors | | | | thousands of |
| have seen the traditional | | | | |
| | | | Sellers has made changes in the industry.By |
| real estate investment methods described in | | | | bringing the Seller into the knowledgeable |
| Part 1 | | | | realm |
| | | | |
| of this article as a lot less than | | | | of Real Estate investing, Sellers now know |
| desirable!They began looking at the prices of | | | | many of |
| houses and | | | | |
| | | | the methods that the gurus teach.This is |
| finding methods of bringing the price more | | | | both a blessing and a curse.To the talented |
| in line | | | | investor, these knowledgeable |
| | | | |
| with making more money in a faster way.These | | | | people are more likely to work to create a |
| savvy investors developed ways to get loans | | | | WIN-WIN |
| | | | |
| on properties that allowed them to pull | | | | situation.Investors that avoid the tricks |
| money out | | | | and stick to the basic |
| | | | |
| whenever they buy a real estate investment | | | | real estate investment techniques and terms |
| (cash | | | | that |
| | | | |
| back at closing) and lower their payments to | | | | have been proven to work over and over |
| build up | | | | again, |
| | | | |
| their cash flow ('creative' investing).They | | | | have proven these powerful real estate |
| even developed methods of determining a | | | | investment |
| | | | |
| Sellers motivation for selling - and bought | | | | strategies work even with these informed |
| the | | | | Sellers.Oh, yes, many of these real estate |
| | | | investment |
| property at a discount price.These creative | | | | |
| investors also saw that some Sellers | | | | techniques work today, as they have for many |
| | | | |
| were not able (for whatever reason) to sell | | | | |
| the | | | | years. So much so that it is almost possible |
| | | | to say |
| property at a discount price, however, they | | | | |
| still | | | | they have become principles; things that |
| | | | work, over |
| needed to get rid of the property, as they | | | | |
| didnt | | | | and over, the same way no matter what |
| | | | happens - |
| know how to manage it as a landlord, or make | | | | |
| | | | like gravity.However, sadly, they are not |
| | | | really principles, as |
| money from it - not that it couldnt be done, | | | | |
| they | | | | several of the real estate investment |
| | | | methods and |
| simply lacked the knowledge of how to do | | | | |
| it.The Seller just never learned how to | | | | techniques that worked in the 1980s and even |
| profit from a | | | | |
| | | | |
| real estate investment.These investors | | | | through the 1990s are today not as powerful, |
| understood how to make money | | | | nor do |
| | | | |
| from such properties, and did.They bought | | | | they work as often as they did before |
| the property on discount terms, and | | | | (although |
| | | | |
| made money from the spread by selling it at | | | | some 'gurus' are still teaching the same |
| retail | | | | methods - |
| | | | |
| price and/or terms (certainly one of my | | | | even after 20 years...).Some of this decline |
| favorite | | | | is due to a more educated |
| | | | |
| methods of real estate investing).Buy Every | | | | society (due to the flood of real estate |
| Real Estate Investment via Discount Price | | | | investment |
| | | | |
| or Discount Terms.Several years ago | | | | information available via books, tapes, |
| (actually, it really took off in the | | | | home-study |
| | | | |
| 1980s), Real Estate Investment Experts began | | | | courses and the Internet), while some of it |
| | | | is due to |
| | | | |
| seeing the potential for making money in | | | | simple changes in policies and laws.It seems |
| bringing | | | | like a wave started late in 2003, the FHA |
| | | | |
| this treasured knowledge to the public in | | | | announced that flips (transactions where |
| the form of | | | | investors |
| | | | |
| home-study courses, seminars and Boot | | | | buy houses cheaply and sell them at or near |
| Camps.They found that it wouldn't create | | | | market |
| competition for | | | | |
| | | | rates) are "illegal". (Note that illegal in |
| themselves, as many people, even though they | | | | this context is |
| | | | |
| | | | not a legal term, but one that has been |
| purchase real estate courses and attend | | | | adopted |
| seminars | | | | |
| | | | from "you are not allowed to do that and do |
| and Boot Camps, will not actually take the | | | | |
| | | | business with us".)The FHAs announcement |
| information and utilize it to make the | | | | started a wave of concern |
| hundreds and | | | | |
| | | | (if not panic) throughout the Real Estate |
| even thousands of dollars possible for | | | | investing |
| anyone | | | | |
| | | | community.Title and Mortgage companies began |
| serious about Real Estate Investing.These | | | | to tighten up |
| Real Estate Investment Experts (being | | | | |
| | | | their reigns. Many of these companies, in |
| dubbed 'guru') found that this side of the | | | | lieu of |
| business | | | | |
| | | | direct information, began simply not |
| was lucrative often making more income from | | | | completing any |
| | | | |
| teaching about real estate investing than | | | | transactions that did not follow the |
| the actual | | | | traditional real |
| | | | |
| real estate investments themselves.It is | | | | estate investment system. This made it hard |
| important to understand that these real | | | | for |
| estate | | | | |
| | | | investors to complete transactions that |
| investment gurus learned early that they can | | | | involved |
| only | | | | |
| | | | simple buy-then-resell agreements (as they |
| teach others what to do, not be responsible | | | | are not |
| for the | | | | |
| | | | really real estate investments, but a rather |
| other persons success.Providing the | | | | nice way |
| information to those that choose not | | | | |
| | | | to make some fast CA$H!).In rapid |
| to use it is very similar to the old adage | | | | appreciation areas (California and Nevada, |
| "You can | | | | |
| | | | for example), the ability to flip a property |
| lead a horse to water, but you cant make it | | | | all but |
| drink".Yes, these real estate investment | | | | |
| gurus got wealthy | | | | stopped (became 'illegal'). All the |
| | | | 'traditional' |
| from selling this information, but their | | | | |
| theories, | | | | creative real estate investing methods were |
| | | | virtually |
| principles and techniques taught thousands | | | | |
| of | | | | put on hold.Ingenuity to the rescue, other |
| | | | methods of real |
| others (those that take action on what they | | | | |
| learn) | | | | estate investing always seem to pop up. |
| | | | After all, |
| how to realize their dreams utilizing their | | | | |
| tried and | | | | "Necessity is the Mother of Invention", and |
| | | | "Where |
| true methods of real estate investing.From | | | | |
| home-study courses and seminars, to boot | | | | there is a Will, there is a Way" are |
| | | | absolute |
| camps and one-on-one training, these methods | | | | |
| | | | principles.Investors have to make a way to |
| | | | get things done - a |
| have been proven to be not only interesting | | | | |
| to | | | | way to keep their real estate investments |
| | | | profitable, |
| millions of people, but capable of bringing | | | | |
| massive | | | | and even more creative real estate investing |
| | | | |
| wealth to those that take action on what is | | | | |
| taught - | | | | methods were developed - to keep real estate |
| | | | |
| those that go on and actually make real | | | | |
| estate | | | | investors, and the love of real estate |
| | | | investment, |
| investments themselves.Knowledge changes | | | | |
| things...This knowledge of no money down real | | | | alive forever. |