Creative Investing

Real Estate Investing Course - Lesson Five

Time for a lesson about creative real estate investing.

Many years ago, with a job that paid $3.40 an hour, I saved $5,000. I used $3,500 of it to buy my first piece of real estate - 2.5 acres near where I lived. I spent a few hours removing brush, and marking the boundaries, and it was ready to sell.

I hand-painted a sign, and two weeks later sold the land for $4,750, with $250 down, and payments of $100 per month, at 11% interest. With the capital gain and interest, my annual return on investment was over 20%. Not bad, for a first time investment.

Buy low for cash and sell high with easy terms. I've used that formula more than once. It isn't even selling real estate as much as it is selling easy financing. That's why you get to sell above the market value.

Creative Investing Means Solving Problems

I had bought the land a little under market, because the seller needed fast cash. His problem was solved. I sold the land a little over the market value because the buyers needed easy terms. Problem two solved.
Creative real estate investing is about solving problems.

Radio stations, police departments and others need hill tops to put radio towers on, but they can't tie up their capital. One creative investor got options on hill top properties for a few hundred dollars, then found those who needed them, and signed long term leases. With the leases in hand, it was easy to get financing to buy the properties. He invested a few hundred dollars to create years of income.

Lumber mills need trees. A friend of mine helped solve this problem by letting a company cut trees on his small property. They paid him $4,500, and you know what? I couldn't see the difference when they were done. The property is residential, and was worth as much the day after the cut as the day before. He lived there, but a creative investor could buy property, sell half the trees, maybe clay or gravel too, and then re-sell the land.

Seller needs the satisfaction of selling for a high price? You need better terms to make it cash flow? Pay more than full price if he'll give you low interest, and maybe even interest-only payments for the first few years. Win-win.

Seller wants less capital gains tax? Buy the furnishings and appliances separately, so he gets the same amount overall, but a lower "price" to report on his taxes.

What do people need? Easy terms? Cleared lots? Lumber? Better access to a piece of property? Smaller pieces of land? Condos instead of apartments? The list goes on. When you think creative real estate investing, think problem solving.

Steve

=================================

Now here is a creative idea: cut out the general contractor when you have your own house built.

How To Build Your Free House is "The ONLY Website in the World That Teaches You How to Order Your Brand-New, Custom-Built Dream House, Paying an Average 42% LESS Than You Could Sell It For..."

Wouldn't it be nice to know that you had already built a lot of equity and a future profit the day you move into your new home? You can use the link here to visit:
http://www.MakeThatOffer.com/freehouse.html

=================================

Note: This is part of a subscription course. If you haven't subscribed, and want to get the other lessons (no charge for now) use the link below to go to the home page and sign up.

Make That Offer | Creative Investing