Colorado Real Estate Secrets

So now how can this be good for a purchaser? Well, to start off it is meant for those who either have good credit but not enough for a down payment or those with bad credit but with the money needed for a down payment. In short, they can’t get approved for a decent mortgage because of their situation. So they benefit in at least 4 ways. First, instead of wasting their money on rent they can build equity from day 1. A portion of their rent and all of their down payment will go towards the principle of the house. Second, if the housing market collapses, they are not obligated to purchase the home and can avoid the financial burden by renting elsewhere.

Depending on where you look for foreclosures, some homes have sold for 10,000 or more. This is staggering to think the original value of the house was around 90,000 or more. This was a real estate invesment.

What is wholesaling real estate? This is the where you do not own a property you just have contractual rights to the property for a period agreed upon by you, as the wholesale; and the seller. You then find an end buyer to agree to the terms and pay you fee for bringing the deal together. It is that simple. Here is a quick step by step depiction of how it should all come together.

You’re strategic. Smart real estate investors always have a strategy in place long before they begin big projects. A smart strategy is the key to any investment and will keep you one step ahead of the competition.

Motivated sellers are what you want to find. Someone with a need to sell not just a desire. We’re not talking about someone who is desperate to take advantage of here but a flexible seller who is willing to listen and negotiate with you. look for the sale signs or newspaper adds with things like “owner take back” or ” low down”, so you know these people are willing to do some creative financing with you. Also “no qualifying” means the financing is assumable and you won’t have to qualify for the existing mortgage. “Owner take back” means the owner will take back a part of the down payment as an extra mortgage instead of cash. FHA mortgages may be assumable and the cost is only a small fee with no additional points added.

The Burger king guy shows up with no helpers, but with two huge bags of sausage biscuits–we had to fend for ourselves to get coffee. He came by himself, because he had no assistants or site selectors working for him. He covered his seven states all by himself. He selected every site, wrote every contract, and did all the research himself. He had no big research facility and he didn’t pay much attention to demographics. Although his talk took about 45 minutes, it boiled down to this, “I go in to Greenville, South Carolina, and look around for Mcdonalds. Then, I’d buy whatever is closest to them.” That was 15 years ago, but that is still their strategy today. They go and look for McDonald’s.

At the end of the 10 years, you sell the building for ,000,000. That may not seem like a great deal to some, but if you’ve already recovered your 0,000 in cash flow and paid down your mortgage by 0,000, you’re walking away from the closing with a check for 0,000 plus the 0,000 you already got back. My simple math may be wrong, but you more than doubled your money.