Earn over $ 250,000 a year from real estate investment

The following is a guest post from my friend , who has made a killing in small-town real estate investments.

Here is the experience of my friend who told me his story in it He said: I did not have the experience of how to fix anything or even how to invest $ 1,000 but a father had
a perfect entrepreneur.

My parents used to invest in real estate so I decided to try,
but the first obstacle was because I did not have money to buy a house. But today you can buy a house without money  Here are the three best ways you can make money in real estate, explaining with the
positives and negatives to each.

Ways To Make Money In Real Estate investment

I could easily write a book on each one alone, but here are the bare boI could easily write a book on each one alone, but here are the bare bones to investing with no money or credit. Here’s another great read from Jeff on the best short-term investments out there,

1. Lease With an Option to Buy

The first way I make money in real estate that I want to break down for you is acquiring a property using a “Lease with an Option to Buy.”

How It Works

This is where you lease a property from a seller for a set amount of money each month, with the exclusive right to purchase the property within a certain time frame.

There is no closing at the onset of this transaction, simply a contract stating the agreement.
Now that you have a contract with your seller, you find a “tenant buyer” to move into the property. You sign a Lease with an Option to Buy with them,

Your tenant buyer will give you a Non-Refundable deposit for their exclusive right to Option the property at a set price for a set amount of time and pay you a monthly lease while they are living in the property.

As a side note, I never sign anything or conduct any Real Estate transactions without my attorney reviewing the documents.

There are several positives and negatives to this type of transaction. Let’s take a minute to look at a few. First, let’s look at the positive.

What You Gain

You have acquired a property with no money and made money from your tenant buyer with their Non-Refundable deposit, as well as their monthly payment (You should always make money on the monthly spread between your buyer and seller.

What You Risk

Here is the reality, and something you will not hear at a majority of Real Estate Investment seminars, where the individual speaking is attempting to sell you his/her program.

Ninety percent of the time, your tenant buyers are B & C credit buyers. They are attracted to your “Rent to Own” program because no bank would EVER loan them money.

                     In this economy and market, these buyers are everywhere.

The reality is, few of them actually clean up their credit and end up buying the house. Also, you will have a huge number that you will be forced to evict who will tear up the property. , but to prepare you if this is the Real Estate vehicle you choose to pursu.

If you do this, make sure you get a huge Option deposit to cover lost rent, attorney’s fees and damage done to the property.

Is It Worth It?

Is there money to be made with Lease Options? Yes.

If you find the right tenant buyer, regardless if he/she buys the house, you will make money on the Option deposit, and the monthly rent spread.  If you are not forced to evict this person, and he/she does not tear up the house when they leave, consider yourself lucky.

On the one hand, you have a seller yelling at you to sell their house and get the loan out of their name; regardless of how long a time frame you have to get it done. On the other hand, you have a B/C credit buyer who is far less than motivated to do what he/she needs to actually finance the house.

If you engage in this type of transaction, you MUST have a thick skin and be ready to deal with lawsuits.

I have over twenty Lease Options going on at this very moment. I still pursue them, but I am very cautious and semi-reluctant to put, and I will show you not only what it is, but how to do it….. the right way.

2. Option a Property

A second way to make money in Real Estate investing without money or credit is to “Option” a property.

How It Works

This type of transaction is similar to a Lease Option, but very different as well. Consider it a Lease Option’s cousin, who is much hotter and more fun.

Here is the simple difference between the two:

• Lease Option: the seller has agreed to take a monthly payment for a specific amount of time, with a set purchase price to come at some point in the future. I do not accept any less than 5 years for these transactions and try to get ten years.
• Option to Buy: the seller is not accepting monthly payments. They have simply given you the exclusive right to buy a property at a certain price for a certain period of time.

Why You Should (or Shouldn’t) Invest
The positives for you the investor, are as follows: You are not dealing with tenant buyers, repairs left by tenant buyers, angry sellers, evictions, lawsuits, monthly payments with no tenant buyer…… the list goes on and on.

The negatives are you do not make any money at all unless you successfully find a qualified buyer within the time allotted in your Option to buy. The seller benefits because they pay no Real Estate commission, and they have the privilege of living in the house while you are trying to sell i

3. Sell Wholesale

A third way to make money in Real Estate actually can require the investor to have cash, .
This technique is by far the best and easiest way for new, inexperienced investors to make “quick” money in Real Estate.

Wholesaling is the art, and I use that word on purpose, of being able to accurately appraise the potential value of a property and buy it so low, you can quickly sell it for cash to another rehabbed or end user who will make it their dream home, without EVER fixing a thing, regardless of how good or poor the condition of the property.

Now, you may say, I do not need cash for this strategy. I can simply Option the property for a wholesale price and then sell it to a rehabbed or end user. You are absolutely correct, but getting an owner to accept a wholesale price is rare.

My Advice

Money can be made in Real Estate several different ways. I will never claim a particular technique is not worthy of your time. They all work, some just better than others.

Bottom Line

As you advance in your career, you will want to find a way to acquire some cash, whether it be from private money lenders or banks.

For me, the first check I earned was small, but it gave me the confidence to keep going. It was nice to see the bigger checks to follow suit. I promise, they were not easy to come by, but with the proper training, hard work and a little luck, it can easily be your name on these checks.