The Number 1 Hack To Get Rich In Real Estate
It’s Time For Rural Money Real Estate School! #getrichinrealestate #getrich #realestate #ruralmoney #rural #money #ruralareas
Learn how to get rich in Real Estate and get a piece of the pie when the sales price is divided up among the non-Real Estate owners.
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Table of Contents
- It’s Time For Rural Money Real Estate School! #getrichinrealestate #getrich #realestate #ruralmoney #rural #money #ruralareas
Do you realize how many people make money off a Real Estate deal that they don’t own?
The non-owners include Real Estate agent, bank, appraiser, lawyer, insurance agent, city, county, and state.
These companies and organizations get rich in Real Estate deals!
The BUYER pays something, even if he buys a distressed fixer-upper for no money down.
His profits, which end up being the biggest of all, are deferred.
Each year investors across this country who want to “Get Rich Quick in Real Estate” fall for the same old sucker-pitch.
They buy courses, tapes, manuals and books on “How to Buy Distressed Properties,” “Buy with No Money Down,” “Buy Tax Lien Properties,” “Buy Fixer-uppers.”
These types of Real Estate infomercials are still being shown whether the market is good or bad.
In regular cycles of about ten years each, however, the markets become too
It starts with everybody and their dog getting rich in Real Estate from ever-rising prices.
Then all at once, the bubble bursts.
Values often sink below the mortgage loan amount, and equity is wiped out.
The financially strong or those who bought at the start of the boom hold on for an inevitable recovery.
The weak hands are foreclosed upon.
Those who bought cheap and are not highly leveraged can usually rent and hold on for a recovery—unless they made the mistake of buying in a bad location like say, Detroit.
Real Estate you buy must be in a great location where there are jobs, or other reasons for strong demand.
Even storied and well-practiced real estate developers like Paul Ognibene will always have an eye on the areas with the most potential.
Real Estate BUYERS have to make the monthly payments, pay the interest and principal, pay the taxes and assessments, and pay the cost of upkeep and maintenance.
When they decide to sell they usually pay a six-percent commission to a local Real Estate agent.
Of course they can sell directly to a new buyer.
But here is a risk-free way to get rich in Real Estate without investing anything.
How Can You Sell Something If You Don’t Own It?
You could become a Real Estate agent/broker and earn commissions for selling, but being a Real Estate agent/broker requires a few courses and a license.
It is a full-time job that only pays well when the market is active and rising.
It allows you to discover opportunities (bargain deals and partners) to build your own a Real Estate empire, but it also requires a lot of work.
There’s nothing wrong with working, but here’s the lazy woman’s way to riches in property.
If you aren’t a banker, appraiser, lawyer, insurance agent, or tax collector, and you want to be on the profitable selling side in Real Estate deals, consider using Real Estate Options.
How Can You Buy Something Without Buying It?
A Real Estate option gives you control of a piece of Real Estate WITHOUT BUYING IT!
By having an option on a piece of Real Estate property, you have the exclusive right to either buy that property, or NOT to buy it.
The choice—option—is yours.
It is an “exclusive” right.
That means that NO ONE ELSE can buy or sell that particular Real Estate property during the term of your option.
It can be a lot, a house, a condo apartment, a store, factory or warehouse.
Any Real Estate!
During the period of your option, the owner keeps paying all of the inherent
costs of the property such as taxes, assessments, upkeep and maintenance.
He or she also collects the rent.
In many cases, you as a tenant can get an option to purchase your own rental property from the owner.
“Mr. Landlord, your place is worth about $100,000.
Would you give me the option to purchase it during my tenancy for $100,000 using any rent I have paid as the down payment?”
As often as not, you will get an option—if you ask!
In Real Estate, all such contracts must be in writing.
But contract forms are usually free on the Internet.
What could be better than “controlling” Real Estate without buying that Real Estate?
Let the owner keep paying the taxes, maintenance and costs.
During the option period, you can either sell the property, or sell the option itself, for a profit.
If the seller sells the property to someone else, while you hold this exclusive option, you are entitled to any monies the seller receives over the price you have agreed to pay for the property.
Or, if the seller sells the property for less than what he agreed to sell it to you on your option, you are legally entitled to collect the difference from the seller.
“Exclusive” means “exclusive” under the law.
When you hold an option on a Real Estate property, you “control” the sale of that property until your option expires.
No one, not even the owner of the property, can buy or sell that property, legally, without first satisfying your option.
You own the exclusive right to buy that property, or not buy that property, or sell that property to someone else, or sell the option itself to someone else.
When you use an option, you are NOT BUYING REAL ESTATE.
You are buying the exclusive right to buy (or not buy) that Real Estate.
That means you also have the exclusive right to sell the property as well.
Using an option, you also have another advantage.
You will usually be dealing with “prime,” or at least acceptable and presentable Real Estate properties.
If you deal with “distressed” properties, you are often dealing with “garbage” real estate.
Of course, at the right price, anything can be sold.
Suppose the apartment you occupy as a tenant needs some tender loving care to make it shine and worth more than your option price?
You fix it up, advertise, show it, and with any luck, you can make $50,000 profit on your option price of $100,000.
If you don’t get a buyer, assuming you have been paying say $1000 a month in rent for two years, you can go to a lender, show you have paid a $24,000 down payment in the form of rent, and get an 80% loan with payments similar or for less than the rent you have been paying.
That’s a no-money-down deal.
When the smoke clears, you own your apartment and are paying less than you did to rent it.
It is easier to get a loan with evidence that you have been able to afford rent around the same amount as the future loan payments.
Thus, you can use an option to buy an apartment (or Airbnb) you formerly rented.
In this case, if the place is really worth $150,000, you have bought it for around half of value.
The seller does not need a broker, and is probably going to be very happy to avoid the 6% broker’s commission on a direct deal.
This is one way both insiders and novices can get rich in Real Estate.
It’s done every day by people in the know—like YOU!
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