There are hundreds of ways to invest in Real Estate. In fact, in a later post I might try to list them all. However today what I’d like to do is give you the top 5 creative real estate investing strategies that I feel are the most dominate based on current market conditions around the United States.

With that said, you don’t need to be an expert in each and every single strategy. The fact is that you only need one to make a profit. Master one method, profit from it, and then move onto the next.

I guarantee if you start hopping from strategy to strategy, you’ll get scattered and you’ll just be running in circles….going no where.  Sure, you’ll gain alot of Knowledge, but Experience comes from applying that knowledge every day.

You make money by experiencing what you’ve learned, not by learning what you could experience. ~ J. Lamar Ferren

Ok, let’s get to it!

In my opinion, these are the Top 5 Creative Real Estate Investing Strategies in This Economy!

If your completely new to Real Estate, then I’d suggest:

1. Bird Dogging (Property Locating):

This is usually where beginners start off and it allows them to get their feet wet in Real Estate Investing. Those who choose this option usually make it a side gig because they are working their full time job and they want to do something with minimum risk, invesment, and time.

However, even if you’re a full time investor, you can locate properties for other investors as a way to bring in some extra income. Property Locators simply find the properties that the investors are looking for and pass it onto them. The investor usually handles all the negotiations, paperwork, and closing of the deal. Some Property Locators get paid up front, but most get paid when the deal closes. Typically their compensation is $500 -$1,000 and even more in some cases.

Here’s the key… Find out exactly what the investor is looking for, then give it to them! If you try to give them something that you think “might” spark their interest instead of giving them exactly what they’re looking for, then you might be wasting your time and you’ll keep getting your deals kicked back.

I’m thinking about putting together a team of birddogs, so if you’re interested, make sure to get on my investor list or sign up for my blog rss updates.

If you want to know more about bird dogging and how to apply the step by step formula for becoming a top real estate bird dog in record time, then hurry over to http://www.JLamarFerren.com/locators

Let’s move to the next.

2. Wholesaling

Wholesaling is like the next step up from Property Locating. Simply put, it is getting a deal under contract at a certain price and selling it/flipping it to another buyer at a higher price for profit. Example: Get the property under contract for $100K and sell it for $110K and make $10K profit (Estimate due to closing costs.) At this stage, as an investor you should be able to locate properties, negotiate, do the paperwork, and close the deal. If you don’t want to locate properties yourself, then partner with a Property Locator! Creative real estate investing at its best.

3. Short sales (Pre-Foreclosures):

Now some investors may see this as an advanced creative real estate investing strategy and some may not. A shortsale is simply where the Lender/Loss Mitigator will accept less than what is owed on the mortgage in order to sell the property quickly. Lenders do not want properties. (REOs) Therefore they are willing to work with Investors to get the deal sold. Therefore you can come in and get the property under contract, negotiate with the lender and get them to accept your offer, and either close the deal yourself or flip it to an end buyer for a profit. (If an end uyer is involved then there will be two separate transactions. When you buy from the seller and when you resale to the end buyer.)

To be honest, it’s not as easy as it sounds, as some Lenders/Loss Mitigators drive a tough bargain and they can deny your offer in a second. It’s best to present an offer that can not only make you a substantial profit, but that can be backed up by facts. Even then, some Lenders/Loss Mitigator can be difficult, and in those cases you should just move onto the next. There are so many Shortsale Opportunites out there. Look for sellers who are in default (behind on payments) or in a depreciating market and find out their motvation.

4. Lease Options

A lease option is simply finding a seller who needs to sell their home and don’t mind waiting 6-24 months (typical) to get it sold. They don’t mind waiting because your objective is to  put a buyer in the home who may not be able to qualify for a mortgage today and you move them in there on a rent to own basis. Its best to screen your buyers beforehand so you will have an idea on how realistic it is for them to buy the home. You get paid an upfront option fee, monthly cashflow, and you even get paid on the back end. As long as you, the seller, and the buyer are happy, this will make you some nice profit, maybe even this month!

If you want to know more about lease options and how to make money this month in real estate, then go to http://www.JLamarFerren.com/presents/bwncc

5. Subject To Investing

Subject 2 investing is taking lease options  a step further by getting the deed to the home, (which gives you ownership of the home, while the financing is still in the seller’s name.) Again, you find the buyer that can’t qualify for a convential mortgage and you move them in on a Rent To Own Basis/Lease Option. Profit works the same. There are also other ways to make money with Subject 2 investing.

Now that you own the home, you can offer claim taxes (talk to your cpa) and also offer Owner Financing. Owner financing is when you basically become the bank and finance some of what you want the buyer to pay you and they will pay you back over a time set by you.

Hope I didn’t confuse you on my weak explanation , but basically if the price is $100K and the buyer can only get $80K, then you can finance the $20K and have them pay the $20 back to you over time. There are plenty of ways to structure owner financing and I will introduce you to a hot one I just came across very soon.

If you want to know more about subject 2 investing, and how you can own a home with no credit check, no cash, and no experience, then visit the following website for a free real estate course on subject 2 investing: http://www.jlamarferren.com/presents/free-sub2course

Above all, the most important element of your business should be Marketing. Both Online & Offline! This is the most overlooked task and should not be taken lightly. This is what brings you leads.

LEADS = DEALS (Notice I just switched the D & the L, How Ironic? )

Even if you’re just getting started, in my opinion, you can use any of the strategies above. Real Estate Investing is the true vehicle that will put you on the right path to Wealth Creation & Financial Freedom. At any age, you’ll be able to knock many deals out the park. The key is to find the solution to the Problem. By doing that, you will do deals all day.

Continue to educate yourself and take action. Don’t get stuck in information overload!

Hope that helps…

-J.Lamar

ps. In my opinion, these are the hottest creative real estate investing strategies in this market. Some may disagree and may argue that I should have listed REOs…or even Rehabs. While these are profitable strategies, I’m more so targeting the one who is just getting started in real estate.

pps. Leave a comment and let me know what you think about the creative real estate investing strategies I listed above and if you disagree with my post, then tell me your opinion of the hottest strategies out there right now.