Options for Investing

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People contemplating real estate investment are always looking for the best ways to earn money. Most real estate investors know the traditional way of making money in real estate – buy a home and sell it for a higher amount. In a seller’s market, this is easy to do. In a buyer’s market like the 80’s and now, making money through buying and selling homes is more difficult.

As a result, many real estate investors have started using other forms of investing and selling.

Buying below market, fixing, and selling – This option invests your money buying the property and fixing it up. It keeps it tied up until the property is sold and closed on. This isn’t a bad option. By buying the property below market value, you have a good chance of making some profit when it has been renovated and sold.

Buying below market, fixing, and renting – This option is similar to the first one. Unfortunately, it keeps your investment dollars tied up in the property for a longer period of time, depending on the how consistently the property is rented.

Buying, fixing, and lease option – This option is better than just renting. There is a future date when the buyer will get other financing and buy you out. This puts an ending in site and gives you your more back quicker to reinvest.

Buying, fixing, and seller financing –This option is as slow as renting in regards to returning your investment dollars. Since you are setting the interest rate on your loan, you can potentially make more money over time.

For the most part, real estate investors are finding that these options create a rather large return on their investments that they would not get anywhere else. Other real estate investors are using investment partners to help increase their available funds.

Investment Partner?

This is an individual that wants to invest money in real estate, but he doesn’t want to do all of the legwork involved. As a result, they loan you the money needed to  fix up a house to get it ready to rent or sell. The money is paid back to them over time until the house sells. Once the house cashes out, the investment partner receives the rest of the money owed on the loan, plus interest.

This situation keeps your investment money available to put into other properties, and at the same town, you still make a profit out of what’s considered a zero investment property. It’s a zero investment property because what would have been your portion of the loan was actually bought out/paid for by the investment partner.

If you want to make more money faster in real estate investment, consider using an investment partner. It can make a huge difference in the amount of time it takes for you to start on your next real estate investment. For more ideas on real estate investment or on the fabulous world of real estate franchises, visit us at Homevestorsfranchise.com.

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