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Wholesaling / Flipping Real Estate
Wholesaling real estate is a strategy in which an investor places a property under contract, finds a buyer who is willing to pay more for that property than the investor agreed, and then flips that property or assigns the contract to the end buyer.
Lease Options
In a lease-option, a property owner leases the property to a tenant who also has the option to purchase at a specified price any time during a specified time period. As a buyer this strategy allows you to control property without getting a loan. As a seller this allows you to profit from a larger pool of potential tenant/buyers.
Subject To's
Taking over a property "subject to" an existing loan. This means you get the deed to the property but you do not assume the loan. The loan stays in the original homeowners name, but you now control the property and make the mortgage payments on it.
Hud Homes
A HUD Property is a property taken over by the Department of Housing and Urban Development (HUD) after default on an FHA loan. These homes are usually sold through an electronic auction to the highest bidder. You can find these properties on the HUD.gov site, or through the MLS.
Tax Lien / Tax Lien Sales
Tax lien - A tax lien, is essentially an IOU imposed by Federal or state law to secure payment of taxes that have NOT been paid. As an investor, you can purchase these liens and make money from the interest, or become the new homeowner if you are not paid back.
Tax sale - Property is auctioned off by the city to investors in order to pay off any remaining debt on the property. This is usually done at a discount.
Probate Investing
If someone who owns real estate dies without having a will or trust that dictates what happens to the property, the heirs may be willing to sell the real estate to an investor.
Short Sale
A short sale is when the loan amount owed on a property exceeds the actual worth of the property and the lender is willing to sell the property at a discount to reduce their losses.
REO
When banks foreclose on homeowners who have not paid their mortgage, the bank ends up owning properties (called "real estate owned") they wish to sell.
Rehabbing - Fix and Flip or Rental
Rehabbing is when an investor buys a distressed property, fixes the property up and either sells it at market value for a profit or rents it out.
Rental - Buy and Hold
Purchasing real estate to keep as a rental property. You can make money off the monthly cash flow, tax benefits, and appreciation of the property when you sell it. Great way to build equity.
Commercial
This includes apartments, self storage, mobile home parks, retail centers, office buildings. As an investor you make money from the monthly cash flow, and appreciation. It's a lot like residential, just on a much larger scale, and requires a bit more experience and savvy. Not a good choice for newer investors.
Well you need to research and see if your state or county you are interested does Tax lien sales. I know Oregon doesn't. In my county it is 6 years worth of missing property taxes to go to force the sale with a one year right of redemption. At a property tax training I went to the county assessor said that they price the homes for sale at 60% of market value. So you could get a good deal on those homes. The downside is that, at least in my area, there are only 4-5 that get auctioned off for property taxes each year so there will be a lot of competition. Liens are wiped clean so the investor gets a clear title.
Lease options are essentially rentals. Only about 10% or so actually execute the option so this is really just like being a landlord.
Subject to's are essentially a breach of contract assumption of a loan. If the bank finds out about the deed transfer they will call the note due. It's risky, and honestly in this market I don't see this being a sound strategy as I see that most people that would want to sell a property this way would be underwater, but that depends on area.
HUD properties always start at appraised value which is close to market value. HUD just announced that they are pooling homes for investors in a few select cities and will sell them in batches. This requires a lot of cash/assets to be in the pool, assuming they do it the way the Fannie Pool works. I don't see targeting HUD properties a more sound strategy than targeting any other distressed properties.
Mostly Investors have a good strategies to invest your money in real estate. Real Estate investment are booming day by day. Everyone wants to invest your money in such type of filed who gave them secure future.
Mostly Investors have a good strategies to invest your money in real estate. Real Estate investment are booming day by day. Everyone wants to invest your money in such type of filed who gave them secure future.
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