When a person thinks of real estate, they think of buying and selling a home in a traditional manner. You as a buyer hire an agent/broker to assist you in finding that perfect home. When you finally find that home, you can bet on the seller having an agent of their own and the two agents begin the process of acquisitioning the property. A lot of time and energy goes into the normal process for both parties, as well as other individuals coming into the picture as the process takes place. Such as an appraiser for the appraisal of the property, inspection person for the home inspections, insurance companies, title agencies, and of course the escrow officer. On some occasions there are more individuals and sometimes not.

My point is this. No matter whom what and where the process is taking place, you can count on the scenario to being complicated, and sometimes lengthy. This is your standard real estate transaction at its best and for the most part very successful, in an economy that is moving forward and a housing market that is booming. But what happens when the economy slows down and the market is at a stand still?

What I want to discuss at this time is the other areas of “Creative Real Estate Strategies” There are several creative areas in the Real Estate market that most investors, brokers, and RE agents are not aware of, let alone apply them to their portfolio. I will touch on a few, discuss them in detail and explain the pros & cons. Keep in mind with so many different techniques, structures and property situations, the key to your success will be dependent on how well you can apply these various strategies and where to apply them within any deal. On top of all the variables included with each of these strategies, you must keep, what I feel is one of the most important techniques/concepts in any RE transaction in mind. It’s what I like to call the “Three Techniques for building Wealth” they are;

  1. Distinguish yourself from others and your competition.
  2. Educate your prospects, potential clients and build credibility for you and your business.
  3. Pursue only the best leads.

These are the various areas that an investor has available to him/her. :

-Wholesaling:
-Retailing:
-Taking Ownership (FSBO-for sale by owner)
-Lease-Options & Options:
-Subject-2 (existing financing)
-Short sale:
-Pre-foreclosure/foreclosures:
-Tax liens:

Wholesale/Retail:

Purchase houses (usually needing repairs) at discounted prices and quickly passing them on to bargain hunters below retail price. This can work well in areas of renovation neighborhoods taking place, run down areas, condemned properties, etc….

Doing some footwork in the area of the county clerks office and searching records for properties that have back taxes owed, estate properties, and homes that have been on the market for more than 3 months are good fits for the wholesale market.

Target Properties:

  1. Low-priced homes
  2. Homes priced well below the ARV (after repair value)
  3. Considerable repairs needing to be done to the homes.
  4. Vacant properties.

Your objective here is to acquire the property at a below FMV price (60-65%) and pass that property on to a bargain hunter. You’re looking for ugly houses, vacant houses, and condemned houses. One key is “motivated seller”.  

Wholesale/Retail:

Purchase houses (usually needing repairs) at discounted prices and quickly passing them on to bargain hunters below retail price. This can work well in areas of renovation neighborhoods taking place, run down areas, condemned properties, etc….

Doing some footwork in the area of the county clerks office and searching records for properties that have back taxes owed, estate properties, and homes that have been on the market for more than 3 months are good fits for the wholesale market.

Target Properties:

1. Low-priced homes

2. Homes priced well below the ARV (after repair value)

3. Considerable repairs needing to be done to the homes.

4. Vacant properties.

Your objective here is to acquire the property at a below FMV price (60-65%) and pass that property on to a bargain hunter. You’re looking for ugly houses, vacant houses, and condemned houses. One key is “motivated seller”

*God Speed*

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