If you want to get a great return on your investment, you should look into purchasing real estate. Even though the real estate market can go up and down, so does the stock market. In the end, most people who invest in real estate come out on top. Generally, when people think about investing in real estate, they think about applying for a fifteen or thirty year mortgage. However, if you want to really make money with real estate, you need to learn some more creative ways to invest.

Traditional Real Estate Route

You can always take the traditional route to becoming a real estate investors. You can go through either a bank or credit union, and get either a thirty year fixed loan for 6.25% or a fifteen year fixed rate loan for 5.75%. You will need to have a great credit score and will need to be able to prove your income and your debt load. You will also be expected to put down 10% in cash on the loan. If you qualify, this can be a great way to enter the housing market, however, there are more creative real estate investing out there.

Seller Carry Back Buying Method

If you find a piece of property that you want to purchase, and the seller owns it free and clear, you can negotiate a seller carry back agreement. What happens is the seller agrees to carry the note for your purchase, and you pay them every month on the note. Generally, you will have to pay them within one to five years. At that point in time, you can qualify for a refinance loan instead of a purchase loan. The less money you have to invest up front, the more money you have to spread out over other investment opportunities.

Subject – To Buying Method

This is a great method if you are trying to finance a real estate investment quickly. What happens is you purchase a property with the existing financing staying in place. The title for the property is transferred into your name, but the loan stays in the seller's name, and you have to make payments on the loan. Generally, this is a short term solution. After six months, you can get the loan put in your new and refinance it. With this selling method, you do not have to come up with a down payment, thus stretching your money further.

If you want to make money in real estate, you have to learn creative ways to make money. You can go the traditional route and put ten percentage down and get a mortgage. Or, you can save on a down payment by learning ways to invest in real estate that are outside the box. When you purchase real estate using the seller carry back buying method, you pay the seller for a set amount of time, then you can refinance the loan, saving you from making a down payment. You can also use the subject to buying method, where the title is placed in your name and the loan stays in the seller's name, with you making payments until you can refinance the loan. Creative real estate investing is possible if you put your mind to it.

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