There are many different ways to invest in Real Estate. Many people understand the importance of investing, especially in Real Estate, but don’t know the many different opportunities that are available in this magnificent field.
Every week there are many more Real Estate deals that show up at my office than either I or my staff can handle. It is like sifting for gold. Many are discarded. The possible deals that are left have preliminary research performed and the gold starts appearing. If the deal doesn’t fit my buying criteria, I will sell the Purchase Agreement to another investor who will end up owning the property. Of the deals that I close on, I package some of them up and sell them to other investors with seller financing in place.
All these properties will need to be financed. Some investors don’t want anything to do with the "hands on" aspect of Real Estate but have money available in retirement accounts, savings accounts, or mattresses that are not producing good returns. Most people don’t realize that these assets can be invested in mortgages on Real Estate with annual returns ranging from current bank mortgage rates to double figures. Actually, there are many more people who invest in Real Estate Mortgages than those who find, repair/renovate, and/or rent for income. It is a great passive way to have your money working for you as you pursue other goals and enjoy a more luxurious life. The best thing about this type of investing is that it can be totally "hands off". Your IRA, 401k, or other retirement account funds can buy or place these mortgages - without paying income tax and other penalties for withdrawal of the funds. If you have a Roth IRA, an added benefit is that all the income made on these mortgages is tax free!
Most "hands on" investors would rather receive mortgage loans from private "mortgage money" investors for several reasons. When a great deal comes by, they need to act fast. Banks may take 30 to 60 days to close. The investor usually must close quickly or face losing a great deal. When a private investor is involved, he can close within a few days. "Hands on" investors are also looking to save up front cash that can be wasted in the form of unnecessary closing costs, points, and bank fees. Private mortgages can much more inexpensively create a win/win solution for both the "hands on" investor and the "mortgage money" investor. Some great partnerships are formed when "cash or credit" investors partner up with "hands on" investors.
I watch current markets. Right now in most areas of the country, there are record numbers of foreclosures. I get excited when the Real Estate market is headed down, especially involving foreclosures. There are many ways to profit from the high foreclosure rate, the decline in property values, and the current "buyer’s market."
You can buy by yourself, buy with partners, own a portion of a deal, invest cash or credit into loans on properties or projects, or invest in notes and/or mortgages on individual properties.
If you have not set goals, or even if you have, 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 this! Yes - even part time! Of course I can’t say for sure that you’ll make it, but if it is ever going to happen, this is the easiest time in history.
Take advantage of the educational opportunities available. There are more seminars and courses available than ever before. Other materials abound, including books by myself and other experts, CDs, podcasts, teleseminars, and much more. Get out there and see what is available. This type of education will save you decades of learning the hard way.
Alan is a millionaire real estate investor with over 25 years of experience. He is an author, speaker and educator specializing in creative and traditional real estate investing.
To sign up to hear Alan’s next teleseminar packed with practical know-how, visit
www.hearthecall.net for free access.
