Multiple Income Streams by Example

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real estate

No Money Down Partnership Deal

This isn't the house :)This isn't the house :)This real estate deal is a deal that was found by a guy that used to work for me back when all I did was real estate. Here are the numbers if I had done the deal myself.

The Numbers
Asking Price: 70,000
Offer Price 50,000
Countered and accepted at 55,000

The property is worth fixed up about 170,000 but needs between 25,000 and 35,000 to get it to great condition. Roof, flooring new interior exterior paint and a new kitchen.

Selling at retail without a realtor would net close to 65,000 to 75,000 Depending on money costs. With a realtor knock off some more.

How This deal actually went
As I said above, I didn't find this deal or was even looking in that market. Recently I ran into a friend that had worked for me back 6 years ago. He said he was wanting to get into flipping and wanted to see if I could do a few deals with him. I said sure Im still involved and would love to go over things with him.

It wasn't more than a couple weeks and he called me said he had a property he wanted me to look at. So I checked it out and said great how do you want to do this.

Real Estate Examples

Real Estate ExamplesReal Estate ExamplesI have decided to add this particular section for one particular reason. Proof of concept. Every deal that I put in this area is an actual deal that I have done and not a method. Each example will show the steps I took to get the deal from start to finish. How much money it took -including any marketing- and the amount of money it made or potentially could make.

Reading guides or peoples opinions on how to do real estate is great but most people won't act because they fear that they might miss a step or just do something wrong. This fear tends to keep them from even trying. The thing is there isn't a perfect step by step way to do each deal. There is almost always something that needs done differently from one transaction to the next. It could something small like a minor amendment to a contract or something big like repairs that must be finished before a loan gets closed. That is why you just have to get over the idea that everything has to be in perfect order before you even start.

Seeing actual examples can help to get over this fear. It allows you to see that not everything has to be done perfectly to make money with real estate. You have to be able to work with people to get the deals done. Title companies, escrow, real estate agents, sellers and more. With so many people involved, it is impossible to have one procedure that will work in every situation. You must adapt and real examples help to show you that.

Real Estate - Don't overlook the Obvious - Getting a loan Still works!

Conventional Loans are GreatConventional Loans are GreatThere are so many ways to make money with real estate that sometimes people forget that the standard old fashioned ways still work. If you find a good deal that fits all your criteria why not just go get a loan. There have been times when investors I know, have come across a crazy good deal that they wanted to buy. One example is a wholesaler I had just started working with that had been doing some direct mail marketing in the seattle area. He had gotten a call on a property that was in a good location, great shape and he could get it at a very low price. The problem he was having was that he wasn't sure what to do with the property. He called me and said he had a property to turn but wasn’t sure what to do.

The answer is sometimes too easy

Lease Options

Lease with Option to BuyLease with Option to BuyLease options are currently one of my favorite forms of Real Estate. I personally feel using the lease option to sell a property has major advantages over traditional sales methods, especially today as standard loans are much harder to get than in the past.

What is a Lease Option
Lease options or lease with an option to buy contracts are really a combination of two contracts which are rolled into one -They don't have to be put into one but there are benefits to using multiple contracts, mainly if your the seller -.

There is the Lease and the Option to buy. The lease is just what it sounds like. Its a rental agreement. This gives the person that wants the house the ability to stay their for a fixed price and a certain amount of time. As long as they make payments on time and follow the rules set forth in the contract they have a place to stay. Since most people know what a rental agreement is Ill leave it at that. The second part of the lease option is the option agreement.

Wholesaling Real Estate

Wholesaling Real EstateWholesaling Real EstateReal Estate is a great opportunity and I would encourage people to consider it as one of their investment strategies. I personally use several different strategies, but here I want to talk about one I don't directly use at least not much anymore. It is Wholesaling, or sometimes referred to as contract flipping. I don't personally use this method but I do use wholesalers to get deals so I know that the method is real. It is a great way for early investors to get involved with real estate.

Benefits of Wholesaling Real Estate
If you have read about making money in real estate with no money and no credit you probably have read or heard about flipping. It might have come across as scammy or maybe you thought it really cant work like they are claiming. How can someone buy real estate with no credit and no money, this is crazy. Well I'm telling you its not. There are multiple ways to do this but wholesaling is probably one of the most common. You can buy properties paying very little money. Im not talking about borrowing from someone for your down payment either -Thats another strategy which I sometimes use still -. You can literally get involved with very little money period.

The basics of Wholesaling

Real Estate Investing

Real Estate Lifestyle - No This isn't my place -Real Estate Lifestyle - No This isn't my place -More millionaires have been created through Real Estate than any other form of investing or business. It can have very high returns compared to the risk that is taken. Many horror stories also have come from this form of business. I personally have had my share of success and failures. Real Estate is one of my favorite forms of investing. It is one of the reasons my focus is not directly on internet businesses and blogging. I do like blogging but I am drawn to real estate investing.

In this area I will go over strategies that I have used in the past and currently use today. I will talk about my failures as well as successes - Most failures are simply trying to push to hard to make things happen, so don't be afraid -. I truly believe that with real estate even bad deals will eventually turn into good ones, with enough time. The key is to not bite off more than one can chew.

As I add more to this guide, I might break it into chapters or even individual books. Real Estate is a very large topic on its own so dividing it into separate books might give readers a better idea as to which form of real estate is best for them. Ex: If you have money and credit, buy and hold techniques might work well for a while. If you are broke and have poor credit, wholesaling works great.

Ill include real examples and great resources to learn more. So if real estate is your thing you might want to come back as I add pages and tools.