Countless investors unknowingly squander golden opportunities right before their eyes, due to a lack of creative thinking. Some ventures require a quick bit of mental floss, in order to attain significant gains. Although accurate number crunching is a fundamental component of crafting a promising real estate deal, it is not the entire picture. Learn how to spot creative real estate deals.
Incorporating a New Approach to Real Estate Deals
New investors on the real estate scene fail to consider the possibility of creative deals. These deals, such as assignment deals, can pocket you some quick, cold hard cash. In these cases, an investor gets financial rewards for finding a willing buyer for the seller of a property.
Typically, an investor and a seller sign an assignment deal. This places the property into the investor’s hands for a limited amount of time (30-, 60-, 90-day period). If the investor fails to attract a buyer within the expiration period, then the property returns the owner’s hand; this comes at the expense of the investor. However, if the investor is able to attract a buyer to purchase the home within the allotted time frame, then the investor will receive compensation. This comes in the form of a commission.
Keep Positive Relationships
We can see how creative ventures, such as assignment deals, are great ways for an investor to make money. However, the difficulty lies in obtaining enough trust from the seller in order to make the deal a reality. Chances are, if you approach a seller randomly with an assignment deal, the seller will either scoff at the offer or will reluctantly decline. To make deals like these possible, you need to build trust and rapport, both with the seller and with the community. Upon establishing the necessary trust between both parties, the seller will be less reluctant to assign the property to the investor. The seller might even be more generous in the final commission payout.
Success in the real estate business does not just boil down to straight figures. There is also a human element that needs consideration. In some cases, keeping up good relationships with sellers can be more valuable than capital. Thus, keep up your relationships.