For an experienced and clever investor, creative real estate investing is a technique that can bring in profits beyond our imagination. Many investors use rehabbing to build fortunes. These investors seek run down, neglected, ugly properties for very less, sometimes lot less than their market value because of their decrepit condition. They then fix the property keeping costs of repair as low as possible, repaint the property, giving them a face lift and manage to sell the property at an amazing price bringing them huge profits!
How to Rehab a Property: This field of investing in real estate is good for experienced and knowledgeable investors not recommended for novices. The investor seeking to rehab a property should study the location as well as the structural design of the house, paying attention to the kind of neighborhood it is located in, shopping facilities as well as transport facilities available in that locale. The investors should have a good idea of the local market, the current land value, must be experienced in rehabbing to judge what needs fixing, the ability to estimate the cost of rehabbing a property, should decide if he wants to rehab it himself or let a contractor do it for him. Consider all aspects to try and get the house at a greater profit and work things out that with minimum costs the property gets to look presentable and try and sell it for its current value or higher. The investor should have a good idea about the latest trends in color and interior decorations spending within a preplanned budget that will help make the rehabbed property more desirable to the buyers. It is better to do the rehabbing yourself as you can significantly lower costs cutting it buy nearly 50% than when a contractor is hired to do the job. It will be better if the investor is trained professionally to fix houses, as he will have a clear idea of the work that needs to be done and how to get it done at lowest costs possible.
Some investors make major money investing in and rehabbing commercial real estate, others are experts in rehabbing obsolete homes and make huge profits by selecting properties near a lake, yet others specialize in rehabbing condos in places, where there is significant demand for condos. Some investors rehab and sell their property at a good profit usually yet others rehab, refinance and rent the property to get better returns on investments. There are investors who acquire homes for say $100,000, rehab it for say $20,000 and sell it for $300,000! The sky is the limit for experienced real estate investors who invest in rehabs!
There are several firms available online to help you with rehabbing properties.
Alexander Gordon is a writer for www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
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Tags: Budget, Creative Real Estate, Creative Real Estate Investing, Current Value, Face Lift, Fortunes, Imagination, Interior Decorations, Investing In Real Estate, Investor, Knowledgeable Investors, Latest Trends, Local Market, Neighborhood, Paying Attention, Profits, Real Estate Investing, Rehabs, Structural Design, Transport Facilities
This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.
Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.
The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..
The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?
Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.
Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.
To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.
Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.
Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.
Now, go make more offers!
Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report HERE!
Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. ? 2007 by Tom Dunn. Website: http://www.dealfiles.com e-mail: tom@dealfiles.com
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Tags: Comparable Sales, Comparison Report, Current Market Value, Duplex Properties, Fair Market Value, Important Point, Neighborhood, Realtor, Rehab, Residential Real Estate, Simple Matter, Single Family, Subtraction, Wholesale
This is another in a continuing series of articles on beginning real estate investing. Today, we?ll tackle the basics of ?subject to?? investing. There are a lot of questions those who are just beginning real estate investing often have about ?subject to?? investing, and this article should answer many of your fundamental questions.
First of all, it?s important for those who are beginning real estate investing to know what ?Subject To?? investing is. ?Subject to?? means that you buy a property ?subject to?? the existing financing staying in place in the seller?s name.
Say that you get a call from a motivated seller. He tells you he must sell his house immediately. He also says he owes around $100,000 on his mortgage, his payments are around $900 per month, including principal, interest, and taxes. Even though you are only just beginning real estate investing, you know the estimated market value of his home is about $130,000.
You head on over to his home. It doesn?t matter in the least that you are just beginning real estate investing. After all, he needs to sell now. You tell him that you will take over his mortgage payments, and keep on making them until you get the house sold. You don?t know how long it will take, but the mortgage will stay in his name until you get it sold.
He asks if you can give him some cash to help him move. Even someone who is beginning real estate investing can negotiate an item like this. After going back and forth a couple of times, the two of you agree on $3,000, which you will pay to him the day he moves out.
Now, what have you got? A house with an estimated value of $130,000 that you will wind up paying about $103,000 for, and a payment of $900 per month. Since you are just beginning real estate investing, there is something you must do right away? market for a tenant buyer.
So, you place an ad in your local paper, and put up a few signs in Mr. Seller?s neighborhood: ?Lease to Own ? Bruised Credit OK.? Your phone starts ringing and you find a young couple with good jobs and good income who went through a brief period of financial trouble a year or two ago. You explain to them that even though you are just beginning real estate investing, you think you can help them.
You offer to lease them the home with a 12 month option to buy it. Their monthly lease payment to you will be $1,200, and their purchase price will be $135,000. They will also give you a non-refundable option fee of $5,000. It doesn?t matter that you are only beginning real estate investing- you can certainly see what you have just accomplished.
You?ve got monthly positive cash flow of $300 - the difference between the $900 you are paying and the $1,200 the young couple is paying you. You have also put $2,000 cash into your pocket right now ? the difference between the $3,000 cash you gave the seller and the $5,000 cash the young couple gave you. When the young couple exercises their option to buy, you will also pocket $32,000 - the difference between your purchase price of $103,000 and the price they pay you, $135,000. Not too bad for someone beginning real estate investing!
We?ve barely scratched the surface of ?subject to?? investing, but I think you?ve got the idea. I?ve got more great ideas for you at Beginning Real Estate Investing.
Now, go make more offers!
Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report HERE!
Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. ? 2007 by Tom Dunn. Website: http://www.dealfiles.com e-mail: tom@dealfiles.com
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Tags: Estimated Market, Fundamental Questions, Mortgage Payments, Motivated Seller, Neighborhood, Pay Day, Principal Interest, Property Financing, Property Subject, Real Estate Investing, Signs
It?s very normal to get first deal jitters in real estate investing.
There are several real issues:
1. Real estate is a big investment, the dollars are large, so there is
great risk but also great rewards. Its much different signing a contract for $100,000 or more that you are going to manage yourself than to send $1000 to the bank and have it put in a cd. Of course when you put your money in the bank it goes down in value as inflation is much higher than the return the bank will pay you. While your real estate investment will grow with inflation but since you have only a small part of your own money invested it will grow at 10-20 times the rate of inflation.
2. When you are new it is hard to know the value of a neighborhood and what is a realistic exit strategy. Find out how other investors are selling their homes. Are they retailing them? Are they doing rent to own, otherwise known as lease option or lease purchase? Holding long term as rentals and cashing out their equity? There are a number of strategies investors can use and some are better than others for certain neighborhoods.
3. Real estate investing is work, you have to go get involved in a multi step project for every property, and that can be intimidating. You just have to learn to write down everything that needs to get done and accomplish small tasks every day and before you know it you will be a real estate investing pro.
Only experience will teach you when its an obvious deal. Look on
www.realtor.com and see what realtors think houses in that area are worth. Drive around a few blocks and call any for sale signs and then go lookup the tax assessor info on those addresses and see how they compare.
To your success:
David Neese
About the Author: David Neese is a real estate investor, small business owner, ecommerce marketer, writer, motivator, father and athlete. David offers a free Ecourse on quick start strategies for getting started in real estate investing that is delivered via email and teleseminar at: http://www.freerealestateinvestingcourses.com
Tags: Athlete, Free Ecourse, Getting Started In Real Estate, Investor Business, Jitters, Lease Option, Lease Purchase, Marketer, Money In The Bank, Neese, Neighborhood, Rate Of Inflation, Real Estate Investing, Real Estate Investment, Real Estate Investor, Realistic Exit Strategy, Realtor, Realtors, Rewards, Small Business Owner
This is another in a continuing series of articles on beginning real estate investing. Today, we?ll tackle the basics of ?subject to?? investing. There are a lot of questions those who are just beginning real estate investing often have about ?subject to?? investing, and this article should answer many of your fundamental questions.
First of all, it?s important for those who are beginning real estate investing to know what ?Subject To?? investing is. ?Subject to?? means that you buy a property ?subject to?? the existing financing staying in place in the seller?s name.
Say that you get a call from a motivated seller. He tells you he must sell his house immediately. He also says he owes around $100,000 on his mortgage, his payments are around $900 per month, including principal, interest, and taxes. Even though you are only just beginning real estate investing, you know the estimated market value of his home is about $130,000.
You head on over to his home. It doesn?t matter in the least that you are just beginning real estate investing. After all, he needs to sell now. You tell him that you will take over his mortgage payments, and keep on making them until you get the house sold. You don?t know how long it will take, but the mortgage will stay in his name until you get it sold.
He asks if you can give him some cash to help him move. Even someone who is beginning real estate investing can negotiate an item like this. After going back and forth a couple of times, the two of you agree on $3,000, which you will pay to him the day he moves out.
Now, what have you got? A house with an estimated value of $130,000 that you will wind up paying about $103,000 for, and a payment of $900 per month. Since you are just beginning real estate investing, there is something you must do right away? market for a tenant buyer.
So, you place an ad in your local paper, and put up a few signs in Mr. Seller?s neighborhood: ?Lease to Own ? Bruised Credit OK.? Your phone starts ringing and you find a young couple with good jobs and good income who went through a brief period of financial trouble a year or two ago. You explain to them that even though you are just beginning real estate investing, you think you can help them.
You offer to lease them the home with a 12 month option to buy it. Their monthly lease payment to you will be $1,200, and their purchase price will be $135,000. They will also give you a non-refundable option fee of $5,000. It doesn?t matter that you are only beginning real estate investing- you can certainly see what you have just accomplished.
You?ve got monthly positive cash flow of $300 - the difference between the $900 you are paying and the $1,200 the young couple is paying you. You have also put $2,000 cash into your pocket right now ? the difference between the $3,000 cash you gave the seller and the $5,000 cash the young couple gave you. When the young couple exercises their option to buy, you will also pocket $32,000 - the difference between your purchase price of $103,000 and the price they pay you, $135,000. Not too bad for someone beginning real estate investing!
We?ve barely scratched the surface of ?subject to?? investing, but I think you?ve got the idea. I?ve got more great ideas for you at Beginning Real Estate Investing.
Now, go make more offers!
Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report HERE!
Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. ? 2007 by Tom Dunn. Website: http://www.dealfiles.com e-mail: tom@dealfiles.com
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Tags: Estimated Market, Fundamental Questions, Mortgage Payments, Motivated Seller, Neighborhood, Pay Day, Principal Interest, Property Financing, Property Subject, Real Estate Investing, Signs
We all want to make money when buying a home. We search high and low for a nice house in our price range and probably plan to spruce it up a bit. Over the years, the piece of real estate will ideally increase in value. There’s not much worse than buying a home that decreases in worth as years pass. One way you can play it safe is by learning and understanding the real estate market prior to diving in. There are plenty of handy and helpful resources at your disposal. You simply have to know where to look for them. I think we all could use a real estate investing tip or two. After all, this is a BIG investment.
The very first home I purchased was in Salem, Oregon. Just before buying, I received a major real estate investing tip from my father. He told me to check the surrounding homes and neighborhoods for registered sex offenders. Now, I know what some of you may be thinking, and no I didn’t go door to door asking criminal histories. I simply got online and took advantage of the free county sex offender search. This website told me all sex offenders registered and living in my county. I was easily able to see which ones lived near the home I was about to purchase. There were none within a mile radius. I was definitely glad my father hit me with this crucial real estate investing tip. Otherwise I wouldn’t have done it. Anyway, I went ahead and purchased the home. I was stoked at how nice the neighborhood was. Just to give you an idea, here are some of the things I investigated prior to purchasing. The school systems were my first priority. You’ll also want to keep this in mind when investing in a three or four bedroom home. Clearly your buyer is going to have children, and that equals school systems. Secondly, I checked the local crime rate, which was good. Everyone wants to live in a safe area. Just hope things don’t go downhill. If the crime increases, it can affect the sale of your home. And finally, I scouted out the local amenities, shops and stores. Most people want these at their constant disposal.
Need another real estate investing tip? Pay close attention to the market. It clearly has its ups and downs. DON’T sell during a “buyer’s market” or you’re likely to lose a bundle. Remember your goal is to turn a profit. Sometimes that involves waiting it out.
Tags: Amenities, Buying A Home, Crime Rate, Criminal Histories, First Priority, Helpful Resources, Investing Tip, Major Real Estate, Mile Radius, Money, Neighborhood, Real Estate Market, Registered Sex Offenders, Salem Oregon, Sex Offender Search
This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.
Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.
The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..
The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?
Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.
Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.
To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.
Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.
Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.
Now, go make more offers!
Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report HERE!
Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. ? 2007 by Tom Dunn. Website: http://www.dealfiles.com e-mail: tom@dealfiles.com
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Tags: Comparable Sales, Comparison Report, Current Market Value, Duplex Properties, Fair Market Value, Important Point, Neighborhood, Realtor, Rehab, Residential Real Estate, Simple Matter, Single Family, Subtraction, Wholesale
This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.
Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.
The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..
The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?
Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.
Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.
To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.
Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.
Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.
Now, go make more offers!
Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report HERE!
Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. ? 2007 by Tom Dunn. Website: http://www.dealfiles.com e-mail: tom@dealfiles.com
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Tags: Comparable Sales, Comparison Report, Current Market Value, Duplex Properties, Fair Market Value, Important Point, Neighborhood, Realtor, Rehab, Residential Real Estate, Simple Matter, Single Family, Subtraction, Wholesale
Real estate investing can become very profitable for those who know what they?re doing. For those who don?t really know what they?re doing, real estate investing can start to feel like a bad idea. Learn more about real estate investing for beginners, and learn how to turn your initial investment into a whole lot more.
Real estate investing for beginners is not so different from real estate investing for the old pros. After all, you?re all trying to do that same thing: get a good return on the property you bought. Learning how to get that return is the trick to success at real estate. For beginners, it?s best to learn all you can before you start investing. Real estate isn?t hard to figure out, and the more you know the more money you stand to gain from your real estate investment.
For beginners, real estate investing should begin with study. Study the market, study the properties that are available in your area, study the public reaction. This means, spend a little time just watching properties in your area. Look at what?s selling, what?s not selling, and where these properties are location. Success at real estate investing often depends on where and what properties you buy. A beautiful home in a terrible neighborhood won?t sell as well as it would in a great neighborhood, and your investment is what will suffer. You want to know which areas are popular, and which areas have properties that don?t sell as well. Real estate investing for beginners means taking the time to learn, before you jump right into spending.
Keep in mind that, for beginners who are just getting involved in real estate, it?s always good to have some help. Speak to contractors, speak to real estate agents, speak to other real estate investors. Learn all you can from others, and in this way you can learn the tricks to succeed. Real estate investing for beginners is just like any other real estate investing, only with a little less experience.
It?s always important, when working in real estate, to give buyers what they want. In homes, it?s the kitchen and bathrooms that make the most impact on potential buyers. Real estate professionals will say it?s the kitchen and bathrooms that make or break the sale of the house. Giving people a pleasant property is essential, because they won?t want to buy anything they might consider sub-par. If you wouldn?t want to buy the property, chances are good that no one else will want to buy, either. And if no one buys, then you?ve made a bad investment ? and will probably end up losing that entire investment, to boot. A property that won?t sell is, essentially, worthless to real estate investors.
Real estate investing, even for beginners, doesn?t have to be extremely complicated. Just learning a few of the ABCs of real estate investing can help you find success on the market. Once you start, you may never want to stop.
Tags: Bad Idea, Beautiful Home, Doing Real Estate, Initial Investment, Investing For Beginners, Little Time, Money, Neighborhood, Real Estate Agents, Real Estate Investing, Real Estate Investment, Real Estate Investors, Start Investing, Success, Taking The Time, Whole Lot
This is another in a continuing series of articles on beginning real estate investing. Today, we?ll tackle the basics of ?subject to?? investing. There are a lot of questions those who are just beginning real estate investing often have about ?subject to?? investing, and this article should answer many of your fundamental questions.
First of all, it?s important for those who are beginning real estate investing to know what ?Subject To?? investing is. ?Subject to?? means that you buy a property ?subject to?? the existing financing staying in place in the seller?s name.
Say that you get a call from a motivated seller. He tells you he must sell his house immediately. He also says he owes around $100,000 on his mortgage, his payments are around $900 per month, including principal, interest, and taxes. Even though you are only just beginning real estate investing, you know the estimated market value of his home is about $130,000.
You head on over to his home. It doesn?t matter in the least that you are just beginning real estate investing. After all, he needs to sell now. You tell him that you will take over his mortgage payments, and keep on making them until you get the house sold. You don?t know how long it will take, but the mortgage will stay in his name until you get it sold.
He asks if you can give him some cash to help him move. Even someone who is beginning real estate investing can negotiate an item like this. After going back and forth a couple of times, the two of you agree on $3,000, which you will pay to him the day he moves out.
Now, what have you got? A house with an estimated value of $130,000 that you will wind up paying about $103,000 for, and a payment of $900 per month. Since you are just beginning real estate investing, there is something you must do right away? market for a tenant buyer.
So, you place an ad in your local paper, and put up a few signs in Mr. Seller?s neighborhood: ?Lease to Own ? Bruised Credit OK.? Your phone starts ringing and you find a young couple with good jobs and good income who went through a brief period of financial trouble a year or two ago. You explain to them that even though you are just beginning real estate investing, you think you can help them.
You offer to lease them the home with a 12 month option to buy it. Their monthly lease payment to you will be $1,200, and their purchase price will be $135,000. They will also give you a non-refundable option fee of $5,000. It doesn?t matter that you are only beginning real estate investing- you can certainly see what you have just accomplished.
You?ve got monthly positive cash flow of $300 - the difference between the $900 you are paying and the $1,200 the young couple is paying you. You have also put $2,000 cash into your pocket right now ? the difference between the $3,000 cash you gave the seller and the $5,000 cash the young couple gave you. When the young couple exercises their option to buy, you will also pocket $32,000 - the difference between your purchase price of $103,000 and the price they pay you, $135,000. Not too bad for someone beginning real estate investing!
We?ve barely scratched the surface of ?subject to?? investing, but I think you?ve got the idea. I?ve got more great ideas for you at Beginning Real Estate Investing.
Now, go make more offers!
Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report HERE!
Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. ? 2007 by Tom Dunn. Website: http://www.dealfiles.com e-mail: tom@dealfiles.com
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Tags: Estimated Market, Fundamental Questions, Mortgage Payments, Motivated Seller, Neighborhood, Pay Day, Principal Interest, Property Financing, Property Subject, Real Estate Investing, Signs
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