Real Estate can become a very money making deal if the investment is done prudently and cautiously.
To make the most out of the real estate various methods and ideas have been practiced over the years.
But nowadays there is an increasing trend towards using innovative ideas in the field to make better profit with minimal investments and legal issues.
The use of non-traditional and creative ideas for real estate buying and selling is termed as real estate investment.
We will further look into some of these creative ideas that can help you with your properties.
I.
Options Options are an incredible tool when it comes to real estate investment.
An option is actually an agreement between the buyer and the seller where the price for the property is set and the buyer buys the property at that price after some time in the future.
In option the buyer has the liberty whether to buy the property at the set time or to withdraw from the option.
The time period for the option can vary depending on the agreement.
During the period the buyer has to pay the option consideration which is non refundable whether the buyer buys the property or not.
II.
Using Bird Dogs Bird dogs are people that assist you in finding good real estate investment deal for a recommendation fee.
Most of the beginner investors opt for this option as the payment is to be made once the deal ends or closes and the risk is minimal.
He can get the money from both the parties III.
Seller Financing This is one of the most used methods to buy a property.
Instead of financing institutes and banks, the seller himself finances the buyer to buy the property in installments that were mutually decided.
The repayment can either be only principle repayment or else it could be interest based.
Interest can be variable or fixed.
All these terms are decided by the buyer and the seller.
Another way of seller financing is that the buyer assumes the seller loans but this is a more risky way.
IV.
Wholesaling Or Buying in Bulk Wholesalers make small amount of profits by buying the property in bulk at low price and then selling it in no time just with little profits.
Although the profit is less, this method ensures continuity of the process so that you can invest continuously.
Another way is to buy property in bulk through banks but selling them individually or in smaller portions.
This allows for greater profit margin in comparison.
V.
Tax Liens Use of tax liens for real estate investment can be also very helpful.
The method involves the investors buying the house and in case the property is default, foreclosure could be done by the investors.
VI.
Flipping Flipping is another creative method although it is used less frequently.
Flipping is about buying a property which is underpriced.
This can be due to various reasons.
One of it can be that there might be minute repairs needed or else a paint job.
Another is distressful conditions like financial constraints or immediate money requirement.
The investor then sells the property at the market value.
This allows them to have a great amount of profit.