Buying Methods

Pick One that Matches

Your Creative Strategies

Most investors have Buying Methods that match their Creative Strategies for real estate investing.

You must understand what Performance Objective you want to have, and how you are going to Finance the purchase. Once you've done that, then you can decide on which method you want to buy with.

It is rare that an investor will try to learn all of the following Buying Methods at once. Normally, you pick one, or two maximum, purchase several properties using these techniques, and really fine tune your process before moving on to another method. Trying to learn too much at one time can be a costly mistake.

Some investors simply stick to one or two methods because they find them more enjoyable or easier to do, and if they are successful, then they don't feel a need to branch out. Whatever way works for you is fine. Just make sure you get one down pat before moving on to another.

So let's review the following Buying Methods:

Distressed Sellers - These sellers desperately want to get out of their obligation.

Foreclosures - It's a fact of life. Other people's misfortune can be an investor's gain, but it doesn't mean you can't help people at the same time.

REO's or Short Sales - When the Bank becomes the Seller, opportunities are created for savvy investors.

Tax Lien Certificates - Paying off back taxes can give you a nice source of cash flow, as well as the potential to own a property for pennies on the dollar.

Flipping Houses - Buy it, Fix it up, then Sell it for a Profit. Done correctly, you can make a lot of fast cash.

Seller Financing - When the Seller becomes the bank. How to successfully negotiate with them.

Lease Options - How to tie up property with little or no money down while you decide if you'd like to buy it.You may have noticed I've left off the most common way people buy homes - using a Realtor and the MLS. That's not because I have anything against purchasing that way. I am a realtor and I've done it several times myself. But every investor should be aware of all of their options, and since you won't hear a lot about most of the other methods from a traditional realtor, I decided to focus on these instead.

Hopefully after reading about all of these Buying Methods you'll get a good sense of which ones you think you might like. Keep in mind this is a journey - there's no hurry to try all of them. Have fun along the way and the rest will naturally fall into place.