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Building Wealth: Don't Waste Your Money on Real Estate Investment Schemes |
by:
Jeanette Joy Fisher |
You've seenreal estate guru advertisements for books, DVDs, programs, seminars, and mentoring coaches promoting no-money-down deals. Perhaps you've watchedinfomercial on TV withpeople telling their stories of how they made millions investing in real estate with no-money-down and cash back tobuyers.
Maybe you, like me and many others, have purchased books or expensive systems based on these no-money-down and lease-option investing schemes. Here'srest ofstory.
Perhaps you've seenad in your local newspaper offeringhome with onezerozero% financing fromseller orlease option. You should know thatinvestor offering these types of deals makes money by purchasingproperty atdiscount and sellingproperty forinflated price.
Lease-option real estate investors playodds. They bet that most people will not be inposition to purchaselease-option home inyear. Soinvestor seekshopeful tenant to make higher than average rental payments, pay more move-in cash, and makeinvestor's mortgage payment. Those tenants who do eventually purchasehome paid much more forhome thaninvestor. Many tenants never come up withnew mortgage loan to purchaseproperty whentime runs out. Either way,real estate investor makes money.
First-Time Home Buyers
If you need to buy your first home to live in, these home-purchase methods may help you if you have terrible credit and can clean it up in time to finalizepurchase inyear. Just understand that you're paying too much forproperty and may not make any money on appreciation. Onother hand, if you have strong credit, you can purchasebargain house with no money down legitimately.
Tips for Beginning Real Estate Investors
Don't buy overpriced property! Avoid onezerozero% investor-financed "deals." You will have to wait too long to make any money. Plus,rental income most likely will not come close to makingmortgage payment for you.
Don't waste your money buying real estate guru books, DVDs, programs, seminars and mentor-coach promoting no-money-down deals. Would you buybook on how to makefortune onInternet that was written in onenineninefive?
These out-of-date, no-money down schemes, tell you to look for home sellers in distress who will let you buy their home for no-money down withseller financingproperty for you. This system worked last century. Today's home sellers know that they can getbuyer who can get their own financing.
Plus, today's home sellers know that other sellers have lost money selling with no-money down. They've heardstories where home sellers did not get paid and had to foreclose onproperty. They've heardstories whereinvestor-buyer rentedhouse to tenants who trashedproperty. They've heardstories whereinvestor-buyer collectedrent and did not payhome seller.
To get started building wealth in real estate today:
one. Get your credit ready for mortgage financing. (Mortgage credit differs from consumer credit.)
two. Buy right. Don't overpay for deals that sound too good to be true. These schemes are too good to be true!
three. Guard your money. Don't get yourself in over your head with high mortgages on rental properties that cause you negative cash flow and jeopardize your financial well-being. The best way to do this is to make sure you getbest mortgage rates onbargain-priced property.
You can buy investment property for little -- or even no-money down. Get started by buying your home orsecond home. Real estate investing offers youmost tried and true way to build wealth when you avoid investing schemes.
Copyright © twozerozerofive Jeanette J. Fisher. All rights reserved.
Aboutauthor:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhouse.com/
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