Real Estate Investing and Your Creativity

Real Estate Investing and Your Creativity

Real estate investing is considered to be as one of the most consistent and profitable investment tool. Whether you opt to invest in commercial buildings, properties or in residential buildings you have a wide opportunity to get back your returns and achieve capital gains. Whether you buy or sell a property you are required to careful plan and then proceed with your plans. There are many techniques followed for creatively investing in real estate. Some popular techniques which are followed for creative investments are as follows.

Finance Provided By Seller

In this technique the owner of the property will offer finance to the buyer. Here the owner will lend lump sum amount to the buyer and buyer has to return back in form of monthly payments or has decided by both the parties. The mode of repaying the amount may differ from person to person. But one common mode is to repay the principal (amount borrowed) along with the interest charged or agreed by both the parties. The interest which is charged may be a fixed part or it can vary from payment to payment and from time to time. In earlier days this type of technique was followed in large by the seller and by the person who had enough money to lend the needy person(s). Today there are many banks and financial institutions providing the option of financing with lucrative interest rates.

Owning Property through Lease Options

In this technique a person lets out his/her property to the buyer for a certain period of time and for a certain amount. Here the buyer signs an agreement with the seller of the property. The agreement signed clearly states that the buyer of the property can enjoy the rights of ownership in the property only for stated period and in no case the buyer (lessee) holds the right to sell the property without the knowledge of the seller (leaser). If a buyer is willing to sell the same property to another person for lease he/she may do so by informing the leaser about the action that is going to take place.

It will also state that the buyer of the property will pay to seller in the regular intervals as stated in the agreement. If in any case the buyer fails to pay the amount then at such point of time the owner of the property (i.e.) seller has the right to file a suit against the buyer and terminate the agreement. The price value of the property is predetermined at the time of signing the agreement and regardless of the fact what the land value is; the lessee is sanctioned to pay the amount as stated in the agreement of lease.

Owning Property through Auctions

It is one of the most popular techniques available in real estate investing. In this a buyer can acquire the property by bidding the highest price and enjoy the rights of the property. Banks and other financial institution use this technique to sell the properties which are under their possession.

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