Creative Strategies

For Real Estate Investing

Analyzing Creative Strategies before you purchase any real estate should be the first step any successful investor takes.

Understanding what you want to have happen with the Real Estate once you own it, while you own it, and when you are ready to sell it can determine what is the best strategy for you.

In addition, your strategy will determine what kind of financing you will need to obtain, if any, for each acquisition.

You need to ask yourself what kind of performance do you expect from your investment? There are 3 Main Types:

1. Cash - Are you purchasing the investment strictly to walk away with a profit?

2. Cash Flow - Are you expecting to get monthly "mailbox" money, or passive income, from this investment?

3. Appreciation - Are you buying and holding for a period of time and expecting a payout at the back end?

After you've determined your performance requirements, then you can consider which Financing Options best meet your needs. There are 3 main choices:

1. Conventional Financing - One to four units

2. Non-Conventional Financing - This is where you get very creative

3. Commercial Loans - four or more units

Finally, the Closing Table is an area you must understand thoroughly.

Once you've made these determinations, you are well on your way to meeting and exceeding your investment requirements.