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R.E. FINANCING
Creativite
Real Estate Financing:
Stradegy Combinations To Make More Options
October 2, 2007
One
of the best ways to capitalize on as many opportunities
as possible is to use a creative real estate system
with strategies like assignments, subject to, foreclosures,
and lease options in conjunction with one another. Once
you learn each of the individual strategies, you can
begin to apply them in conjunction with one another.
This will help you avoid a lot of the pitfalls and scam
tactics along the way. You will also have a lot more
flexibility while limiting your risk substantially when
you do this. Below are few examples of strategy combinations
you can use in any market, whether up, down or flat.
“Subject-To”
and Lease Options
You can gain control of a property using a
subject to arrangement, then lease option the property
for higher rents, more cash flow and a higher purchase
price (when someone is leasing to purchase instead of
just renting it is typical that they will pay more for
rent and have a higher purchase price then an outright
buyer).
“Subject-To”
and Foreclosures
When you find an owner in preforeclosure, you
can gain control of the property using a subject to
arrangement, then bring the loan current by selling,
renting, lease optioning, or assigning the property
to another buyer or investor.
Foreclosures
and Lease Options
When you get a property in foreclosure (and
maybe you even negotiated an additional discount using
a short sale) you can then lease option the property
for higher rents, more cash flow and a higher purchase
price.
Lease
Options and Assignments
You can gain control of a property using a
lease option as a buyer, then assign that right to another
buyer or investor.
Foreclosures
and Assignments
You can tie up a property in foreclosure by
getting it under contract at a lower purchase price
(and even negotiate an additional discount with a short
sale) then assign that right to purchase the property
to another buyer or investor for a fee.
Other
Combination Strategies
You can use a number of different strategies
in conjunction with one another. For example, you may
find a property that needs a lot of work, then rehab
the property and lease option it for a higher purchase
price and rents. The same principle can also apply to
single family homes by doing lease options instead of
traditional rentals. These are some additional ways
to increase profits, cash flow and long term growth.
If
you are buying and holding properties make sure you’re
in a market that supports it. You will not want to hold
properties that are losing value because of a market
decline (unless you’re getting enough monthly
cash flow to justify it). This is why faster, lower
risk, strategies as described above are better to use
for flat and down markets.
Contributed
by Creativerealestatetools.com
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