Wednesday, May 11, 2011
Real Estate Investment Opportunities in Today's Crazy Market
By A. Hamid Adeniyi Otule
Dear readers, if you must be aware of this, then know that the best investment opportunities for you will depend on your goals and objectives. Investment strategies that are a fit when you are first getting started won't necessarily make sense for you once you've gotten your investing career launched.
For those who have just started investing; Have you ever read or heard that my favorite strategies is that it doesn't take any cash or credit and there are one of the simplest ways to get started in investing is by learning how to structure sandwich lease option deals. The reason this is one of plenty of motivated sellers that you can work with. To put together a sandwich lease option, you are going to match up a motivated seller with a potential tenant buyer, and make a profit for doing this.
Furthermore, search for a motivated seller who is looking to get out from under their payments and who is open to your creative offer. You'll structure a long term lease of five to ten years where you agree to cover the existing mortgage by paying rent to the seller.
Obviously, for this to be one of your best methods of buying real estate, the amount you pay to the seller needs to be LESS than the amount you can rent the house out for.
Moreover, you’ll also get an option to purchase the house for either the amount the seller owes to the lender or for about 80 percent of current market value. Making sure your option price is low enough so that you can offer the property to your tenant buyer on a rent to own basis along with the right for your tenant buyer to purchase from you at a higher price.
Other investment strategies for beginners include owner carry financing or buying a home using the existing financing.
For the intermediate investors, once you've done a few lease option deals you'll be ready to move on to short sales and flipping properties. Moreover, Short sales involve negotiating with the lender to accept less than what is owed so that you can resell the property to someone who will live in the house. For making quick cash, this can be one of your best techniques because you keep the difference as your profit.
Flipping or wholesaling homes are two other appropriate techniques for intermediate investors. Most successful flips or wholesale deals involve finding homes in poor condition and then either immediately reselling them to another investor, or fixing them up to sell to a retail buyer.
For the sophisticated investors or what I call as the ‘Big Thinkers’ If you like investment opportunities where you can make millions instead of "just" hundred thousand naira, then you may want to consider investment opportunities in the commercial real estate arena. You can as well choose from apartment buildings, self storage, mobile home parks, office & retail and other commercial investment opportunities.
In conclusion so, now that you understand a bit more about creative real estate investing, you're going to have to decide which type of deals you want to be going after. No matter which of the various investment opportunities you decide is best for you, don't make the mistake of failing to take action on making your dreams come true.
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I wish you best of luck