Real Estate Coaching for Big Profits with Little Money and Risks

What can you do if, after taking stock of the more "traditional" means of generating funds to purchase real estate, you find that none of them is right for you? There are, indeed, ways to buy property with very little or no money down, a true and legitimate business opportunity. It's quite likely that you've seen a late-night infomercial or two touting the ease of these concepts. Well, the truth is that they can be done. The further truth and we coach our mentees, however, is that they are not easy. No-money-down deals typically involve a considerable amount of risk and, as such, deserve a great deal of evaluation and care. They're also incumbent upon finding an owner who's willing – or can be persuaded – to sell on such terms. In short, they're easier said than done. If they weren't, everyone would be doing them so it's perfectly profitable and not a scam. But they can be put together, and here are just a few methods:

Did you know that lease options are great and smart strategies for new investors as well as seasoned investors to profit big with a cashflow business opportunity?  For the new investor, it’s a way to get into a property with very little risk.  Imagine not having to take out a loan, put down a lot of money, or take the risk of having a lot of your capital tied up in a deal.  Where you have little at risk, it’s always best, especially when you are starting out as a home based business opportunity.  For new investors, it’s a great strategy in that regards. Because it doesn’t require a lot of capital, as well as not requiring you to take out a loan, it also is a smart strategy there.  If you have money at risk and your good credit at risk, that could be something that could be ruined if you don’t know what you’re doing.  Lease options are a great strategy for new investors and for all of you aspiring real estate entrepreneurs and investors who want to make money in the real estate game. Lease options  are great way to accomplish this with little money or no credit. Let's examine the beauty of making money in real estate using this creative way. Lease options are a great way to take control of a property without owning it. In a lease option scenario you would take control of the property by leasing it from the owner with the option to buy it. 

For experienced investors, it’s a great way to add a strategy to your arsenal.  You’re out there solving problems, out there providing solutions for sellers, for people in situations they can’t solve on their own, and if you know how to do a lease option and know how to structure it correctly, you can help more people.  Lease options are also a great strategy for seasoned investors to really shine because now you have more to offer, more expertise, and more solutions for people who are in trouble.  Lease options are definitely good for new, as well as experienced investors.

A lease with the option to buy is a great way to create a win-win solution for both the buyer and seller alike. The seller gets to sell their house quickly for top dollar and the buyer gets the option to own a house regardless of credit history or qualifying through a bank. Both parties benefit during the leasing period of the agreement. The seller gets a positive cash flow in the form of monthly rental payments and the buyer get time save money and/or prep for future financing while enjoying the house in the meantime.
 

A property owner who's highly motivated to sell may consider leasing his or her investment property to a prospective buyer and giving the buyer an option to buy the property at an agreed-upon date in the future. This type of transaction can be used very effectively when a seller needs to get out of the ownership or management of his or her property, perhaps due to illness or relocation from the area. The purchaser agrees to lease the property for a specified period of time, while preparing financially to purchase it. Depending upon the contract terms agreed to by both parties, part of the lease payments might be applied toward the down payment. Buying a home with a lease option is one of the simplest ways to buy and sell real property. It may seem a little intimidating at first, but in the end, the benefits far supersede the challenges of getting started as a lucrative business opportunity. 

Another little risk method with little money required is an option contract that simply is a contract between a prospective buyer and seller that provides the buyer with an option to purchase the seller's property within a given period of time. As consideration for the option, the buyer pays an agreed-upon sum of money that's non-refundable should he or she choose not to exercise the option to purchase the property. If the buyer decides not to purchase the property, the 'option money' is forfeited, going to the seller. If the buyer chooses to exercise the option, the money becomes part of the down payment.

An option is a unilateral contract, which means that all rights to buy or not buy the property belong to the option purchaser. Once the contract is executed, the seller has absolutely no more control over the sale. For this reason the seller will often request a fairly substantial option deposit. The contract, in effect, forces the seller to take his or her property off the market for a period of time, at the end of which it still may not be sold – depending upon whether the buyer decides to exercise the option to purchase the property or not.

An option contract can be an invaluable tool for a prospective buyer. For example, you might find a property that you're very interested in, but at the present time your available cash may be limited. However, you know that in just a few months you'll have enough cash available to purchase the property. Or perhaps you might be waiting for another property that you own to sell or close. Your money might also be temporarily deposited in certificate of deposits or other vehicles, and withdrawing the funds prior to maturity would result in substantial interest penalties. Whatever the case, you don't want to lose your opportunity to buy the investment property in the meantime, so you use an option contract to gain control of, or tie up, the property.

One other way to buy properties without using your own money is that you can offer the seller a share of the profits generated by the property as added incentive to sell the investment with no down payment requirement. In doing so, not only will the seller receive a portion of the income produced by the building, but he or she will still be carrying back a second mortgage as well. The method of determining the profit distribution and the length of time that it's to be paid are negotiable. 

There are other ways to buy properties and we coach our students thru them all to make money now and the above are some of the strategies that have helped many investors getting started or experienced investors to minimize their risks.  For more information visit www.GuaranteeProfits.com