Cash - Take the Money and Re-Invest

Many investors' Preferred Performance Option is putting Cash immediately back into their pockets when they buy a property.

A typical scenario is an investor has $20,000 to invest. Their goal is to find an investment opportunity where they can potentially double or triple their money in a relatively short period of time.

How? By purchasing properties that either need a lot of work, are owned by a distressed seller who wants to get rid of the property as soon as possible, or are bank or state owned and are only looking to have the existing lien on the property paid off, not necessarily receiving full market value.

Let's review each of these types of investments that can net an investor a tidy sum of cash if handled correctly. All of these Buying Methods are covered in another section of this website.

Flipping Houses - Most people have heard of this type of purchase. You may have even watched a couple of the t.v. shows they have that show people who are doing this. If you have, then you know this isn't always a sure fire way to make money. But if done correctly, it can pay off, sometimes quite handsomely!

Basically, you buy a home for under market price, come in and make cosmetic or structural improvements, and then turn around a re-list the property so that when it sells, you make a profit over and above your initial investment. This method puts cash in your pocket, but can also leave you holding a house you don't want and eat up all your profits if you don't do it right.

Distressed Sellers - If you can get good at finding sellers who don't want their property any more, so much so that they'd almost rather give it away than be left with the pain and stress that comes with owning it, then this would be a good option for you to make great profits.

Buying methods that work for this type of creative financing strategy are pre-foreclosures, owners who will consider selling subject to their existing mortgage, or with seller financing. Not only can you potentially buy a home significantly under market, but a lot of times for little or no money down, allowing you to turn around and resell for, you guessed it, cash in your pocket.

Bank or State Owned - Lots of times homeowners don't pay their mortgages or property taxes, and the banks or state end up owning the home, which in turn presents an opportunity for the savvy investor to buy under market and make some money. REO's or Short Sales, as well as Tax Lien Certificate Sales, are both methods you can explore to get a home for significantly under market value.

If you have very little or no money to invest, learning some of these Creative Financing Strategies can put money into your wealth fund so your investment career doesn't stall while you're trying to build capital. Just try one method, and after that, you'll be hooked!