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