You can invest in real estate without owning any real estate. For example,
- You can buy notes (secured by a deed of trust) at a discount, or
- You can buy a Real Estate Contract, aka Land Contract, at a discount.
- You can buy an Option to Purchase property and either exercise it or assign it for a profit.
- You can assign for profit a Purchase & Sale Agreement.
- You can assign a lease for a profit.
- You can buy out a party being foreclosed on and deal with the secured party, and sell the property before it ever gets in your name.
- You can buy out a troubled party and obtain a Quit Claim Deed, and then sell that paper.
- You can wait until property has been foreclosed, and go to the secured party and buy the rights to own or re-sell the property.
- And there are many more combinations.
Red Flag: These transactions are not for the faint of heart. These are advanced techniques, because there are so many traps for the unwary. A thorough understanding is critical to avoiding disaster. I’ve handled all of these, either as a real estate attorney or Realtor.
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