Low-Risk Strategies For New Real Estate Investors
Many people are scared away from investing in real estate because they are afraid to take the risk. Maybe they don’t want to lose their savings, or don’t think they can qualify for a loan to help. This couldn’t be farther from the truth. There are ways to invest in real estate without a lot of risk. Yes, you heard me right! You can invest in real estate and make a lot of money with little to no risk. Ready to hear more?
Over my 20+ years of real estate investing I have perfected the methods I have found to be most successful, and that have made me millions. Once an investor starts bringing in more capital they can then venture out to more risky investments. But to start, these are some good low-risk strategies to understand:
1. Subject-To Deals
A subject-to deal is very low risk. In this type of deal, the owner has a traditional loan on the home, and they are currently responsible for making the payments. In some cases, they can no longer make payments. This is where you can step in. You will enter into a “subject-to” deal with the owner and the lien stays in their name. You, in turn, get the deed to the property and as long as the payments are made on the loan, you retain ownership of the property. You won’t need to use your own credit to obtain a mortgage.
2. Sandwich Lease-Option
Offering a reliable tenant a lease with the option to buy later is a risk-averse way to invest in real estate. This way, if you want to hold onto a property, you will know you have a buyer when it is time to sell.
3. Location, Location, Location
Finding a property in a prime location is usually less risky than a house in a non-desirable neighborhood. When you want to minimize the risk, stick to the popular neighborhoods where you know homes sell quickly.
Wholesaling, although not my preferred or suggested way to invest in real estate, is still an option. Wholesaling is when you enter into a contract with the seller to purchase the property, and then you sell your position in that contract to someone else. This is a very low-risk strategy and you won’t need to use your own credit, do repairs on the house and it is usually fast cash. It is important to note that although the cash can come in quick, it’s usually smaller than properties sold with subject-to or on a sandwich lease-option.
I teach many strategies that can help you build wealth through real estate investing. Many of the strategies are low risk, and you can learn to structure deals without using your own credit or money. I have designed my teaching so that anyone willing to commit the time and effort to learn can build success using. It’s time for you to commit!