Creative Real Estate Investing Ideas
Creative real estate investing is the most interesting part of rental property investment. In real estate everything is negotiable. The main idea is to create a positive cash flow or some immediate cash.
Creative real estate investing all boils down to 2 concepts:
You can have a lot of fun coming up with as many variations of these two basic concepts to create deals. If you are looking for the best ideas for
financing investment properties
when banks won't lend click the link above. If you want to open your mind to creative investing ideas keep scrolling down.
Let's explore a few:
- You can control a piece of property with a simple option to purchase for as little as $100 and sell for a higher price without ever closing.
- You can control a property for several years with a lease-option agreement
a.k.a. rent to own investing
. You may offer a seller a slightly higher price than he/she can get in the current market with the expectation that the property will appreciate due to your improvements. If it doesn't appreciate, you don't have to buy it.
- You have the
the property offering a higher price but spread the payments out and/or reduce the the interest rate so that you have a positive cash flow.
- Use cash by
real estate investment in IRA
- You have the seller finance the down payment so that you have a "nothing down" deal. Ask the seller to forgive all or part of the loan if you make payments for one year.
- You offer a seller in
a reduced price by negotiating a short sale through the bank
- You improve your cash flow and selling price by using a
Rent to Own
- Assume someone else's loan. Buy
real estate subject to
existing financing. Some people worry about a "due on sale" clause but if you create a trust using the sellers name, financial institutions do not know the difference
- Use some of the sources I talk about in
How to Finance Investment Property
to get a down payment
- Find an abandoned house that an owner will sell you for nothing down and minimal payments or use a
to control the property. If a city is pressuring landlords of abandoned houses, he might be willing to give it to you very cheaply.
- Use a "wrap-around" note to pay for the property
- Offer low monthly payments with a balloon payment in 5 years
- Assign an option you have on a property to another potential buyer for a fee
- "Bird-dogging" - finding properties for investors you meet at your
- Ask the seller to pay closing costs or provide you with a "carpet allowance" at closing.
- Find private investors that will finance your rental property investment with their
- Use a
Hard Money lender
and re-finance after rehabbing the property
- Ask for a price discount if you take the property "as-is".
- Offer to pay the sellers moving expenses
- Offer to pay all cash and close fast for a price discount.
100% financing of investment property?
More creative real estate investing ideas can be found at creative real estate ideas
I could dream up ideas for hours but you should get the idea by now. Some of these creative real estate investing ideas require more specialized knowledge and you should consult with your real estate attorney in many cases.
Link from Creative Real Estate Investing to Real Estate Loans