I talk to a lot of so called gurus in this business and read a lot of articles. Their are many ways to invest in real estate and be successful. the key to your success is using the right formula for the market today. In the last 4 years the market has got much tougher and harder to navigate.
I always look for the quickest and best ways to succeed in every market. In 2004-2006 it was flip baby flip. The homes were being bid up over the asking price. In North Scottsdale the homes were going for more than the appraisals. This of course did not last and people lost their shirts in that market. We tend to focus on the massive wealth created but there was massive wealth destroyed also.
When the market stopped being a flippers market it starting being a buyers market. That means more homes than buyers. Since 2007 the market has been a buyers market.
Fast forward to today and you have a very low cost market. Prices have went down and their are some great deals out their. I have focused on the lease option market. With better than 1/2 of the buyers having bad credit the lease option was a great way to get those buyers to purchase. With a good down payment and great cash flow you can get close to the top of the market for your home.
You are really acting like a bank and they are your clients. In my area we tend to buy average priced homes and net cash flow $600 a month. We also get another $20,000-$40,000 on the spread with the lease option. All that means is the difference from what you paid versus the sales price.
Recognizing that flips are not a big part of this market and that people still want to buy homes, lease options get them homes and makes you a lot of money. Ever wonder why banks have large buildings and have great offices? They let people borrow money for a time and make interest on that borrowed money.
In lease option you play both Bank and Investor. You get the best of both worlds buy making a great cash flow(interest) and a great profit on your sale (exercised lease option). Making money in this market is possible if you understand it. Brett Young Rooftopvideo.com