Creative Real Estate Investment

Creative Real Estate Investment



Creative Real Estate Investment
An example of​ creative real estate investment? When I​ was young, I​ had a​ job that paid $3.40 an​ hour, and​ I​ somehow saved enough to​ buy my first piece of​ real estate - 2 acres near where I​ lived .​
It cost $3,500.
I spent a​ few hours removing brush, outlined a​ driveway with logs, and​ hand painted a​ sign .​
Two weeks after I​ bought it​ I​ sold the​ land for​ $4,750, with $250 down, $100 per month, at​ 11% interest .​
With the​ capital gain, my annual return on investment was over 20% .​
This was my first real estate investment.
Creative Real Estate Investment - the​ Key
I bought the​ land cheap, because the​ seller needed fast cash .​
I​ solved his problem .​
I​ sold the​ land higher than the​ market value because the​ buyer needed easy terms .​
Second problem solved .​
Solving problems is​ the​ key to​ creative real estate investment.
Cell phone companies, radio stations, police departments and​ others need hill tops for​ their towers .​
The problem is​ that they can't tie up their capital buying them .​
One creative investor found a​ way to​ solve their problem.
He got six month options on hill top properties for​ a​ few hundred dollars .​
Then, when he found those who needed them, he would get a​ long term lease signed .​
They built the​ tower themselves, of​ course .​
With a​ lease in​ hand, it​ was easy to​ get financing to​ exercise the​ option and​ buy the​ properties .​
He invested a​ few hundred dollars to​ create years of​ income.
Trees are needed by lumber mills .​
a​ friend of​ mine solved this problem by letting a​ company cut half the​ trees on his small property .​
They paid $4,500, and​ I​ couldn't see the​ difference when they were done .​
The property was worth as​ much the​ day after the​ cut as​ the​ day before .​
My friend lived there, but a​ creative investor could buy property like his, sell half the​ trees, maybe clay or​ gravel too, and​ then re-sell the​ land.
To solve problems, you have to​ figure out what they are .​
Do people need easy terms? Cleared lots? Lumber? Better access to​ a​ piece of​ property? Smaller pieces of​ land? Condos instead of​ apartments? the​ list could go on .​
Just remember that solving problems is​ the​ key to​ creative real estate investment.




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