How many methods for investing in real estate would you say there are? If you go to a Than Merrill or Armando Montelongo seminar, you might think there are two or three. In reality, there are actually 24 basic, legitimate methods for investing in real estate, and not just the two or three that most "infomercial gurus" teach. In fact, if you were to add up all the techniques that all the gurus teach, it would not even make a baker's dozen.
Now you might be thinking, "That's great - but I do not have a suitcase full of cash and a credit score of 820 so 24 methods do not help me very much." But what if I were to tell you there are eight methods that do not require any cash out of pocket at all, or even good credit? There are even ways to buy real estate without involving banks!
As an example, have you heard of the powerful "no cash" method called "Equity Participation" (EP), aka Equity Sharing? Probably not, because most of the gurus have never heard of it, either. Yet it is a great way to buy a property without making a down payment and if your credit is not good it allows you to use the seller's credit. Sounds too good to be true, I know, but EP is actually sanctioned by the IRS. This method is detailed here...
That is just one of the 24 methods taught in "The Simple Man's Guide to Real Estate".
Here is a list and brief description of all 24 methods of real estate investing . If you have any interest in real estate it is worth checking out.
The 24 Methods of Real Estate Investing
This list is by no means complete, since any two or more of these methods can be combined to create other methods. A good course will teach, in detail, all 24, and will also show you how to combine them to create hundreds more. "The Simple Man's Guide to Real Estate" is the only course that does so and the only one to provide free, unlimited mentoring by professional investors which makes it all so simple - all for under $100 complete. Every one of these strategies are simple, simple, simple - and 8 of them do not even require cash or good credit! So simple, in fact, that most 6th graders can do them. You can start by choosing just one or two methods suited to your situation, then add others as your experience (and bank account) grows.
- Wholesaling (Assigning) - fast, easy, no closing or financing required. Great way to get started without cash or credit
- Contract For Deed (Land Contract) - no cash or credit required, no bank involved. Some sellers prefer monthly income to cash-out and will self-finance, for several reasons. Here's how to take advantage of it
- Apartments - multi-family units, if purchased properly, can create passive income for life. Flipping them can also be very profitable, if done correctly
- Lease Option - no cash/credit required, no banks involved. Can be used to buy, or to sublet at a profit, or both
- Master Lease Option - a lease option on an entire apartment complex, providing potentially huge monthly income and a no cash/credit method of buying. No banks involved
- Triple Net Lease - much like a Master Lease Option, but there are crucial differences. No banks involved
- Foreclosures - lenders are often forced to unload these at deep discounts, but there are rules to follow
- Preforeclosures - many "gurus" confuse foreclosures and preforclosures. Learn how to profit from the differences, and how to find them before anyone else, and before they can get on any list
- Rehabbing - generally the most profitable real estate investment, but such huge profit comes with risks. Learn how to evaluate rehabs and mitigate the risks
- Short Sales - more prevalent in hard times, but can be done even in good times. If you and the seller can offer the lender good cause for forgiving part of the mortgage, you can get a huge discount. Find out how
- Double Escrow - No cash or credit required, legal in all 50 states. But there are new caveats to be aware of, and methods to overcome them
- Probate - everybody dies. When a homeowner passes, the heirs are often in a hurry to dispose of the property. How to locate these opportunities and profit from them in ways other gurus keep missing
- Lease & Sublet - No cash or credit required. Learn how to lease at below market rents, then sublet for more; or upgrade the property (with owner's permission) to increase the rent you charge
- Tax Lien Certificates - Unpaid property taxes result in tax liens on the properties, and a great investment opportunity for those who know the ins and outs, and what properties to avoid
- Tax Deed Sales - a lot of the same rules as tax liens except you actually get ownership of the property at the tax deed sale. Know how to buy in, and which properties to avoid
- Equity Sharing (equity participation) - No cash required - you use a portion of the seller's equity as down payment, he gets the balance from your mortgage (which he co-signs for, as partner) and both of you share in the equity from future appreciation. Seller gets his equity back with his share of appreciation typically in 3-5 years when the property is resold or you refi in your name only and pay him off. If you rent the property out, he shares in that, as well. A special agreement is required
- Reverse Mortgage - If banks are doing it you know there are big profits to be had. You, too, can offer elders a reverse mortgage that can help them live their golden years in greater comfort while building your own net worth
- Sale & Leasehold - you can sell a property to an investor, and include a long-term lease to yourself at a favorable rate. Then sublet, and raise rents with increased appreciation. Long-term income even after selling the property
- Buy & Rent - no explanation needed - you buy a property, then rent it out. But you must buy right, or you can end up with an alligator it will eat you alive
- Sweat Option - a great way to start. An option to buy a property that needs work, and seller permits you to get the work done in exchange for the down payment. You get in without a lot of cash or credit, and end up with a property worth more than you paid
- Rolling Option - large parcels can be sub-divided. A rolling option allows you to option parcel #1, and when you resell it you roll that option onto parcel #2 and so on. You get in for much less, and it eliminates the risk of ending up with unsold parcels.
- Option - requires very little cash. An option gives you the right but not the obligation to buy. It also gives you the right to put the property up for re-sale at a higher price, then flip it to your buyer
- Note Trading - not officially a real estate method, but can be used as such, so we include it here as method #23. Any note or mortgage held by a private party or non-bank corporation can be bought and sold. Often available at as much as 50% below value. How to find them, how to buy them, trade them for real estate, and learn which ones to avoid
- The B-R-R-R method - parlay one small investment to build a large portfolio of income property
You may notice this list does not include "Subject to", or Sub2. The reason is simply because it is not legitimate, is illegal in some states and immoral in all. It strips the seller of rights while still leaving him responsible. And it can trigger a "due on sale" clause.
This wide variety also indicates why you need a good, quality mentor. Only one course - "The Simple Man's Guide to Real Estate" - provides mentors who are practicing real estate investors working in the field, and they are always at your disposal
If you have ever thought of investing in real estate, or you simply want to buy your own home in a way that won't break you, you really need to check it out.
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