Lease/Optioning Financed Property
I have some liquid capitol to invest. Seems to me that if I bite the bullet and finance a single family home using a traditional broker, I may be able to avoid some of the early frustration of a new investor searching for a seller willing to do creative financing.
From my studies it looks like finding a willing buyer with marginal credit and some cash may be easier than finding that flexible seller. I realize that I will mostly give up the front end after I pay my closing costs.
Mr. John Locke, I highly respect and welcome your thoughts.
tradr123,
Glad to meet you.
You are liquid and this gives you more flexibility, than looking for the traditional motivated sellers, as such this is the approach I would suggest.
When we look at markets today we find some that appreciation rates are rapidly gaining on almost a monthly basis.
A perfect example is Las Vegas were you can look upwards to a 2% per month increase in appreciation. So lets do a little math here.
If you purchase a medium range property lets say for $200K, there is a possibility of the house increasing in value in one years time to $248K.
An example I know investors in Las Vegas who are hoping their buyers do not go through with the 2 year balloon because in a few case the houses are $40K and $70K over the already built in 2 year appreciation. They have since taken a different strategy about the back end of the deal.
This is an example of only one market that seems to be increasing in appreciation monthly. A little research should bring up others.
Your exit strategy would be entirely up to what fits your investing goals, however still look for the good deals when buying.
This is only one approach I would recommend, low risk, great rewards.
I guess Cash is King in any market.
Joh $Cash$ Locke
Thank you John. Very insightful.
I think that what your telling me is to learn my market, and be patient in determining profitable buys.
Thanks again, and I look forward to reading you for the next 12months.