Since Laura doesn’t plan to occupy the home, where does she have room to profit in this deal? Laura has a pool of potential buyers and sends the house information to a few she thinks might be interested. Jack and Lois Lehman fall in love with the home and settle on terms with Laura: $200,000 purchase price with $5,000 down and $1,600/month for a term of one year. They agree to be responsible for maintenance costs and repairs, and there is no early cash-out penalty. The situation is ideal, as Jack just got a job transfer from their hometown two hours away. Lois and the children can move to the new house with Jack immediately while they wait for their old house to sell, and they don’t have to worry about short-term renting or long commutes for Jack. Once the sale of their old home is complete, they are able to qualify for a bank loan on the new house and close well before the one-year term is over. Win-win-win. Mary received a fair price for her home, and she doesn’t have to deal with landlord headaches or foreclosure. Laura receives a $5,000 down payment and $200 a month in positive cash flow. The Lehman family moves into their new home on terms that give them time to get things in order for a bank loan that will cash Mary out. LEARNING SAVVY STRATEGIES Someone with the right knowledge can apply the overall concept illustrated in this example to almost any property situation. With the crazy real estate climate and barrage of reality “fix-and-flip”
real estate investing shows, more budding entrepreneurs are looking at investing in real estate as a viable way to expand financial portfolios and satisfy their dream of becoming the boss. For those considering taking advantage of the opportunities to be found in every town across the country, there is no shortage of education available for getting started on the road to real estate investing. Almost every method of delivery is available—from books and digital media to live seminars and one-on- one coaching. The majority of these resources tend to focus on teaching one or two strategies, however, leaving large gaps in a prospective real estate investor’s training. Outdated information can lead to legal difficulties and cost thousands of dollars in “learning curve” losses. In addition, not knowing all the strategies available and how to properly execute them can result in deals slipping through the cracks, relegating what could be a rewarding career to a hobby.
Suni Goff’s passion for real estate remodeling design and talent for insightful, well-researched writing are the cornerstones of a prolific, successful career spanning 20 years in the real estate marketing and rehabbing world. She’s also ghostwritten numerous professional articles, educational programs, and books for 11 best-selling authors. Fortunately, savvy investors have a valuable resource available, right at their fingertips. REIPro Investing software is the premier one-stop-shop for all aspects of real estate investing. With a vast education library and tools to help determine the perfect strategy for virtually every property situation, it’s designed to guide and streamline the process for all real estate investing experience levels. Knowing how to properly execute all strategies and how to decide which is right for each situation ultimately determines the level of success an investor will achieve. If you take the time to become Strategy Savvy, the future of real estate investing looks bright indeed. •
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