Jacques Coquerel
Profitable Real Estate Investing on a Shoestring
Copyright (c) 2007 Jacques Coquerel
Some real estate investors will say that it takes money to
make money in this line of business. This is partially
true. What may be true is the fact that 90% of all the
people in the real estate business need money to make a
profit. Money is first and foremost created in the mind
before it becomes an actuality. This is why the coined
term "making money" exists.
Making money in real estate investing rests on the fact
that you can see value in a property no one else sees and
can sell this property for much more than its selling
price. Anything that happens in between like finding the
money to buy the property is just problems you have to find
the solutions to. Looking at it this way, money is a
solution to a problem but never a requirement in making
money in the real estate business. Here are a few ways to
make money in the real estate market on a shoestring budget.
Lease Option. A lease option involves gaining control of a
property without ownership. With a lease option, you are
given the right to use the property now with a
corresponding contract that you will be able to own the
property at some future specified date with the terms you
and the owner agrees to today. By using the lease option,
part of your rent will be credited towards the purchase of
the property. This means that you will not have to shelf
out a large quantity of money in order to gain the right to
purchase the property. To make a profit using this option,
all you have to do is to find someone willing to lease the
property at a higher price than was offered to you.
Finally, transfer the lease then take home your profit.
"Subject To" option. "Subject to" option on the other hand
involves the transfer of the owner's mortgage
responsibilities to the buyer. This means that upon
getting the deed for the property, you will be the one who
will continue the mortgage payments for the property. Of
course, having the old mortgage still pending, you will not
be able to apply for a mortgage yourself in order to
acquire the property.
The benefit for the home owner in this case is that he will
be free of monthly payments he cannot afford while you will
be able to acquire the property without any down payment.
Of course, the mortgage payments should not be too high and
you have to be sure that the value of the property will
appreciate in the near future.
Real Estate Matchmaker. Lastly, you can always make money
in the real estate market without owning or selling any
properties. By being a real estate matchmaker, money is
made through finding sellers willing to sell a property in
a certain location for a certain amount and finding a buyer
willing to buy that property at a higher selling price.
The difference between the buying and the selling price is
your profit.
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Jacques Coquerel is a real estate investor based in
Atlanta, Georgia. He has made more than 750 transactions
since 1996. You may visit one of his sites
http://www.reonline101.com and receive a 13-part FREE
ecourse on real estate investing.
