Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth

In investment real estate the quickest way to wealth is through owner financing, or lease optioning. So, let's take a look at one model transaction, involving the purchase and sale of two properties on lease-option contracts so you an apply it to your own investment real estate system.

Assume you buy an investment property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You receive $4,000 as a down payment from the buyer, and you will get the remainder of the balance in 12 months. You've created a note for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more in interest payments, if you keep this property for a year. You then find a rehab property in an inexpensive neighborhood that you can get for $35,000. You offer a 10% down payment of $3,500, promising to pay of the loan in 13 months or less.

Now, you can use the $4,000 from the first property, so you don't have to come up with your own money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be sure your agreement allows you to defer your first payment for 30-60 days. Now, if you can't sell the house in 13 months (this certainly won't be a problem, though), you'll have the cash from the first house you bought, when the $76,000 balloon payment comes due in 12 months, so you won't lose anything or have to get your own financing, when you have to pay off your second home in 13 months.

You see, you always cover yourself, when using this approach. If you purchase smart on this second house, you should be able to put a few thousand dollars into it and re-sell it in a few short months. Be sure you make a profit well above your $35,000 purchase price and anything you have put into it. Again, if you buy smart, after a few grand of rehabbing, you should be able to sell the property for $45,000 to $50,000. You wind up making roughly $30,000 to $35,000 in a year or less on the sale of your first two properties. This doesn't include the extra thousands of dollars in interest you've made on the payments you're collecting. Learn more about this strategy at www.winningthemortgagegame.com.

Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com. Get his free mortgage finance course at http://www.winningthemortgagegame.com

---

Real Estate Investment Requires A Team

I had a hard time at first with real estate... Read More

Buying Land Online

In the old days people generally only bought land and... Read More

Santa Visits a Just-Moved Newcomer in South Florida

Twas the night before Christmas and all through the house... Read More

Buying a Home ? Dealing With Lender Letters

Most people who set out to buy a home, be... Read More

French Property - a Buyers Guide to Purchasing Property in France

The CompromisThis document is the document you will sign agreeing... Read More

Be Careful - A Real Estate Agent Could Lead You Astray

The real estate agent is a valuable source of potential... Read More

Investing in Real Estate Profitably: Financing Options for Purchase of Rental Houses, Part 1.

This is not an article about tricks for 100% (no... Read More

How To Get More Money For Your House

If you are thinking about selling your house, you should... Read More

Important Facts For Home Buyers

If you are considering buying a home or have spent... Read More

Stopping Home Foreclosure with Bankruptcy

Bankruptcy Will Stop Your Sale - At Least For Now... Read More

Why Commercial Real Estate is the Hottest Retirement Asset

For small business owners, commercial real estate investment is the... Read More

5 Factors of Selling a Home

There are five major factors to consider when selling a... Read More

Maximizing Curb Appeal and First Impressions to Sell your Home

We all know that a home or property of any... Read More

Flipping Fixers: Using Transformation Psychology for Top Dollar

Satisfying and lucrative real estate investment depends upon your correct... Read More

European Second Home Prices Wilt in Drought

Spain and Portugal have suffered one of their worst droughts... Read More

New or Old House?

A lot of buyers think that a new house is... Read More

Real Estate Investing Produces Extraordinary Profits

Imagine making $5000 a year from real estate investing without... Read More

Chapter One FSBO the Russ Miles thriller/mystery novel

Chapter OneShe reached the phone on its second ring. "This... Read More

Secrets of Making Money from Real Estate - Part 3

Great, now how do I actually INVEST in real estate?Investing... Read More

Real Estate Growth: How Long Will It Last?

There has been speculation in the media recently about the... Read More

Top Tips for First Time Home Buyers

Advice to Help When You're Buying a HomeFirst time home... Read More

Searching For Maui Beachfront Houses?

Who wouldn't want to move into a Maui beachfront house?... Read More

High Tension for the Buyer and Seller of Real Estate Can Be Reduced

Tensions can run high in both the selling and buying... Read More

Curb Appeal

First, lets start with what it is. Curb appeal is... Read More

A $100,000+ Discount On Miami Condos

By this point and time, many people have heard about... Read More

Investment Real Estate -- A New Twist: Be the Bank, Not the Landlord, and Get Rich Without the Work!

I was a landlord for a decade, and I believe... Read More

3 of the 5 Ways Real Estate Can Take Advantage of Blogs and RSS

Earlier this month, Realtor Magazine announced that they would be... Read More

Making Money In Real Estate - 10 Ways

Making money in real estate is an endless topic that... Read More

Property Investing Secrets 4

Property Investing Secrets:How to Sell to 100% of the Market... Read More

Selling Your Home - A FSBOs Guide to Keeping It Safe

Sellers need to keep their safety in mind when prospecting... Read More

NAR® Broker Will Swear It ? Real Pro? Agents Share It ? FSBO Truth

For posting the "Truth" on your website, some FSBO's will... Read More

Selling Your Home ? Alone or with a Broker?

How do you decide whether to sell your home (or... Read More

Want To Be Profitable In This Real Estate Bubble? I?ll Show You How In Just Three Easy Steps

STEP#1. First you have to recognize that in order to... Read More