Different Ways to Invest in Real Estate
There are many different ways to invest in Real Estate. Many people understand the importance of investing, especially in Real Estate, but are unaware of the different opportunities that are available in this magnificent field.
Every week there are many more Real Estate offers showing up in my office than I or my staff can handle. It’s like sifting gold. Many are discarded. The remaining potential deals have some preliminary research done and gold is starting to show up. If the deal does not meet my purchase criteria, I will sell the Purchase Agreement to another investor who will end up owning the property. Of the deals I close, I package up some of them and sell them to other investors with seller financing in place.
All of these properties will need to be financed. Some investors want nothing to do with the “hands-on” side of real estate, but have money available in retirement accounts, savings accounts, or mattresses that aren’t producing good returns. Most people don’t realize that these assets can be invested in Real Estate mortgages with annual returns ranging from current bank mortgage rates to double digits. In reality, there are far more people who invest in home mortgages than find, repair/renovate and/or rent for income. It’s a great passive way to make your money work for you while you pursue other goals and enjoy a more luxurious life. The best thing about this type of investment is that it can be completely “hands off”. Your IRA, 401k, or other retirement account funds can buy or place these mortgages, without paying income taxes or other penalties for withdrawing the funds. If you have a Roth IRA, an added benefit is that all income earned from these mortgages is tax free!
Most “practical” investors would prefer to receive mortgage loans from private investors with “mortgage money” for a number of reasons. When a great offer comes along, they need to act fast. Banks can take 30-60 days to close. Typically, the investor must close quickly or face a large loss. When it comes to a private investor, you can close in a few days. “Hands-on” investors are also looking to save money up front that can be wasted in the form of unnecessary closing costs, points, and bank fees. Private mortgages can create a much cheaper win/win solution for both the “hands on” investor and the investor with “mortgage money.” Some excellent partnerships are formed when “cash or credit” investors team up with “hands on” investors.
I look at the current markets. Right now, in most areas of the country, there are record numbers of foreclosures. I get excited when the housing market heads down, especially when it comes to foreclosures. There are many ways to take advantage of the high rate of foreclosures, declining property values, and the current “buyer’s market.”
You can buy alone, buy with partners, own part of a deal, invest cash or credit in loans on property or projects, or invest in notes and/or mortgages on individual properties.
If you haven’t set goals, or even if you do, I would challenge you to set one of your goals to be at least a millionaire within the next five years. This is the market, the time and the place to do it! Yes, even part time! Of course, I can’t say for sure that it will, but if it’s ever going to happen, this is the easiest time ever.
Take advantage of available educational opportunities. There are more seminars and courses available than ever. Other materials abound, including books by me and other experts, CDs, podcasts, teleseminars, and much more. Go out and see what is available. This type of education will save you decades of learning the hard way.