No Money Down and other ‘Creative’ Real Estate
For many years, investors have seen the traditional
real estate investment methods described in Part 1
of this article as a lot less than desirable Parc Central Residences!
They began looking at the prices of houses and
finding methods of bringing the price more in line
with making more money in a faster way.
These savvy investors developed ways to get loans
on properties that allowed them to pull money out
whenever they buy a real estate investment (cash
back at closing) and lower their payments to build up
their cash flow (‘creative’ investing).
They even developed methods of determining a
Sellers motivation for selling – and bought the
property at a discount price.
These creative investors also saw that some Sellers
were not able (for whatever reason) to sell the
property at a discount price, however, they still
needed to get rid of the property, as they didnt
know how to manage it as a landlord, or make
money from it – not that it couldnt be done, they
simply lacked the knowledge of how to do it.
The Seller just never learned how to profit from a
real estate investment.
These investors understood how to make money
from such properties, and did.
They bought the property on discount terms, and
made money from the spread by selling it at retail
price and/or terms (certainly one of my favorite
methods of real estate investing).