Finance, Real estate

No money down Real Estate Investing

Nothing is impossible, most especially when it comes to business. Due to the economic turbulence that we are experiencing right now, a lot of people, most especially the highly-spirited entrepreneurs, have been cooking up ways to get the deals that they need. Who would have thought that you could buy a real estate property without putting a down payment? As people became more determined and desperate due to their financial constraints, the no money down real estate investing has just gotten more popular and crazier than ever.

Nowadays, there are different ways to cut a deal in real estate. Before, if you want to buy a lot or a property, you really have to find a way to come up with that down payment, which is one of the crucial parts of a real investment transaction deal. As the real estate investing surfaced into the real estate vocabulary, it’s now a lot easier to get that dream house or investment that you’ve been eyeing. It is all about creative financing; the crazier and the more creative your agreements are, the better. Here are some ideas that you can pull off:

Real estate investments

1. Exchange properties. If you don’t have the money for the down payment, you can offer to swap your property instead of paying a down payment. You can negotiate to exchange your cars, yachts, appliances, furniture, equipment, and other things that you have that can be of great interest to the seller. The trick is to watch out for the special interests of the seller.

2. Exchange services. If you have skills or talents that you have such as accounting skills or if you provide certain services like legal aid, contractual services, medical services, etc., then perhaps you can offer that as your down payment.

3. Assume the sellers loans. If you know that the seller has loans and is struggling to meet the payments, then you can offer to pay the loan payments for him instead of making a down payment.

4. Rent to own. If you have enough money to rent, then you can offer to lease your way to buying that dream home that you want. You just need to negotiate with the seller a certain amount of money to be paid every month until you’ve paid for the total purchase price of the house.

5. Assume the mortgage. Another option that can be both advantageous for you and the seller is paying for the existing mortgage of the seller that he has for the property that he is selling. You and the seller can draft a contract stating that you will assume the mortgage payments; this move can be greatly advantageous for you if the mortgage has low interest rates.

6. Negotiate for a higher price. If all else fails, then you can negotiate for a higher price than the selling price that the seller is offering. For example, if the seller is selling the property for $105,000, then you can offer to pay $110,000 instead of paying for the down payment.

There are so many creative ways nowadays to buy that dream house or property. Whether you have the money for the down payment or not, if determined enough, you’d be able to find that perfect deal to get that dream! Just keep your eyes and ears open and you’d find that no money down real estate investing scheme that you need.

Read More
Real estate

Make real estate investment work for you

Most often than not, real estate investments are considered long-term investments simply because they are not highly liquid assets unlike stocks and bonds. Liquid assets are those that can be easily converted to cash or profit in a short span of time. Due to its long-term nature, investing in properties entails big money, big risks, and big gains or even losses. It is not for everybody; the best real estate investors are the ones who have the knack to spot opportunities in places and properties way ahead of time.

Properties investment is generally about buying a certain property or land and selling it at a profit in the distant future. The purchasing part is easy if you have the money; selling it is the challenge. Of course, not all properties are highly sellable; so you have to learn how to evaluate properties so that you can spot the ones that you are sure you would be able to sell in the future at a higher price. The key to real estate investment is to buy low and sell high!

Real estate investments

It’s all about the timing! The best time to get the best deals is to buy when property rates are low in a certain location due to downturns. When looking for a property to buy, check the following factors:
1. Residential properties and commercial properties nearby. Watch out for signs of development within the neighborhood and nearby neighborhood.
2. Transportation facilities. Good transportation system in the area is a big plus.
3. Recreation facilities such as outdoor parks and malls .

Sometimes, real estate investments involve more than just buying and selling. Some investments require restorations, bathroom plumbing and swimming pool maintenance. If you purchased a run-down house or an old building or condominium, you have the choice to fix it so you can sell it at an even greater price in the distant future. This type of real estate investment is tricky because you have to know something about architecture and remodeling. If you made an incredibly big mistake in estimating your costs in fixing up the place, you might end up blowing your investment. To maximize profits in this kind of property, check for hidden defects, parts that need to be repaired, parts that needs to be renovated, etc. Some properties, if properly remodeled or renovated, can be sold thrice or even four times the purchase price. You need to consider the costs in fixing or remodeling the property and the potential of the property after fixing it before you buy it.

Real estate homes

On the other hand, other real estate investments involve leasing of the property. You can buy an empty lot to build an apartment complex. In this kind of investment, be ready because investment returns could take an even longer time.
There are four things to consider in this type of investment:
1. Price of the land.
2. Construction costs .
3. Cash flow. If you used financial loans to purchase land and build the apartment, just make sure that you factor in the interest rates and payment schedules when you do your financial planning.
4. Number of tenants you can have. The number of tenants you can accommodate determines your income per month.

Having an apartment leased can actually be a very stable and profitable investment since every month you are guaranteed that you will receive money. You just have to make sure that your cash outflow and inflow are correct because a lot of unexpected costs take place in this kind of investment such as damages, repairs, wear and tear, etc.

If you want an easy way to make money in real estate, buy land and lease it for commercial use. This is a less risky type of investment since you are only paying for the lot. To get the best lot, watch out for lands that are bordering highways because these are the ones that normally come handy for gas stations, warehouses, etc. There are so many ways to make real estate investment work for you. You just have to watch out for opportunities in unexpected places.

Read More