Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth

In investing existent estate the quickest manner to wealthiness is through proprietor financing, or rental optioning. So, let's take a expression at one theoretical account transaction, involving the purchase and sale of two places on lease-option contracts so you an apply it to your ain investing existent estate system.

Assume you purchase an investing property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You have $4,000 as a down payment from the buyer, and you will get the residual of the balance in 12 months. You’ve created a short letter for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more than in interest payments, if you maintain this property for a year. You then happen a rehab property in an cheap vicinity that you can get for $35,000. You offer a 10% down feather payment of $3,500, promising to pay of the loan in 13 calendar months or less.

Now, you can utilize the $4,000 from the first property, so you don't have got to come up up with your ain money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be certain your understanding allows you to postpone your first payment for 30-60 days. Now, if you can’t sell the house in 13 calendar calendar calendar months (this certainly won't be a problem, though), you’ll have got got got the cash from the first house you bought, when the $76,000 balloon payment come ups owed in 12 months, so you won’t lose anything or have to get your ain financing, when you have to pay off your second home in 13 months.

You see, you always cover yourself, when using this approach. If you purchase smart on this second house, you should be able to set a few thousand dollars into it and re-sell it in a few short months. Be certain you do a net income well above your $35,000 purchase terms and anything you have got set into it. Again, if you purchase smart, after a few expansive of rehabbing, you should be able to sell the property for $45,000 to $50,000. You weave up making roughly $30,000 to $35,000 in a twelvemonth or less on the sale of your first two properties. This doesn't include the extra thousands of dollars in interest you've made on the payments you're collecting. Learn more than about this strategy at www.winningthemortgagegame.com.