Easy Ways To Create Wealth Through Real Estate

Most people have seen the many commercials that are on late-night television, and the advertisements that are on the Internet, regarding simple strategies that you can use to build wealth using real estate in your area. Some of the programs focus on single-family homes that are designed to be fixed up and flipped for a profit. Others will target foreclosures where you are able to purchase homes for pennies on the dollar, and depending upon what state you are in, you can also flip these homes for tens of thousands of dollars in profit, or rent them out to create a residual monthly income. Regardless of the focus of the program, the goal is always the same. You are going to focus on one of the most reliable ways to invest your money which is real estate, and investment that tends to gain value without fail. Here are some simple ideas from David Loughnan that you can use in order to try to do this on your own, using strategies that have worked for decades.

Fixer-Upper Homes

The idea behind this particular strategy is that you are approaching people that have a home for sale, usually a FSBO home that is being sold by an owner that wants to get rid of the house. It could be that they are moving to a new location, that they are retiring and need the cash, or they simply don't have the money to repair or upgrade the home on their own. As a result of this, they are willing to work for you, lowering the price so that you can easily qualify for a loan at a regular bank, or some of them will actually carry the note so that you can send them a monthly check and take ownership of their house. This is something that most people do if they want to flip the home, putting in $10,000 or more, and then making a substantial profit. You simply have to be careful in regard to making sure there are no liens against the home which can be accomplished by paying for a title search, find out what other homes have sold for that are comparable in the area, and potentially look forward to a sizable return on your investment for a minimal amount of work, needs assistance?

Foreclosures

Due to the banking fiasco just a few years ago, many people lost their homes. When their payments doubled or tripled, making it impossible for them to make the payments, most of them just let the homes go. This means that all of the banks that had lent the money were now taking back the homes as collateral. For a bank, this is the worst thing that they can do because they are not able to generate any money through investments when it is all tied up in real estate instead. For this reason, they are willing to take a substantial discount on the price of the home, making this a win-win scenario for both the bank and the person purchasing the property. There are several techniques that can be used to accomplish this, as well as websites that are dedicated only to foreclosures, allowing people to take advantage of extremely cheap properties that are available right now.


Lease To Own

Another very popular strategy that was popularized several years ago was a technique called lease to own. This means that you would have a business arrangement with the owner where you would be able to lease the property, and at any time, during this agreed-upon duration, you would be able to purchase the home for the agreed upon price, regardless of how much real estate increased in value in the area. People were able to do these types of transactions with as little as five dollars, the tiny sum of money necessary to make the deal legal after signing all of the documentation. This allowed the owner to receive monthly payments from the buyer and gave the buyer the possibility of holding onto the home for a couple years, waiting for the market to appreciate. This is yet one more strategy that can be used in a positive way in order to reap the benefits of investing in real estate. Check out Chase Edwards for more valuable information.