3 Simple Ways to Start Investing in Real Estate

The internet is awash with creative and non-traditional ways of real estate investment. Reading one of them makes you feel that it is very simple and workable. Then you begin to doubt whether all of them actually work. The truth is they do. All these techniques have been used by someone, somewhere at some point in time. The possibilities of using these techniques are limitless. Once you start putting them into practice, you will find out that they can work wonders for you. Some of the creative methods of real estate investments that you can put into practice are as follows:

Finding money lenders

There are people, even in this slowdown, who are loaded with cash. These people extend short-term loans to their customers with a little higher interest rate than the conventional lenders. You can secure such a loan from a lender and use this short -term facility to invest in your real estate business. You can use these short term loans for flipping houses or any other short term real estate activity. The profit from the business can take care of the mark-up.

Simultaneous buying and selling

The method, though creative and workable needs a lot of hard work and quick wittedness. The phenomenon works like this: You buy a property from an owner and request him to defer the payment to a future date. Within that date you find a buyer for the same property. You ask the buyer to make immediate payment. When the buyer gives you money, you use that money to pay the owner from whom you have bought the property. So what's in it for you? Of course, you are not going to sell the property exactly at the same price at which you bought it. The difference between your buying price and selling price is your profit.

Though seemingly, the idea is simple enough, in reality it is a little bit complicated. First you need to find a motivated seller and convince him to sell his property at deferred payment. Then you need to find a buyer of the same property and convince him to make immediate payment to you. If you decide to start such a venture, it is highly advisable that you have a buyer already lined up before you make the purchase so you do not get stuck with the property.

Assuming mortgages

Another creative method for investing in real estate business is to assume mortgages. The idea is to take over the existing mortgage on a property. In addition to taking the mortgage on the property, you can also get another mortgage for the payment to the seller. The phenomenon is very much feasible since the seller gets higher interest and receives his payment in relatively shorter period of time. But, before you indulge in this activity, you must make sure that the original lender agrees to your assuming the mortgage because his consent is imperative. Also try and make yourself familiar with the local laws of the state in which you wish to operate since the laws differ from state to state and if you are not aware of the existing laws.

If you would like more information on this topic or to learn more real estate investing tips, ideals or "real world" investing strategies please go to my blog at http://www.learnrealestateinvestingblog.com/.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.


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