I read in a book a while back that there are only two ways that you can make money in real estate. You can either buy real estate on price or on terms. It said that you cannot give the seller both the money he wants and all cash. If you are going to pay cash for a property you need to make sure you are paying a much lower price than the estimated value. The book said don’t pay more than 65 percent of the value of the property. Then it is ok to pay all cash for a property. You need the extra room for the costs to fix up the property and a little room for profit.
This investor preferred buying an investment property on terms. That way the seller could get the money they want for the property and you get terms flexible enough so you can make a profit on the property. He stated that if you buy a property on the right terms, you will never lose money.
As with any type of real estate investing. Using a purchase option or rent to own method of real estate investing to make money will take lots of work. It is not always easy. If it was everyone would be doing it. It can be done and it is not as hard as you think, you just cannot be lazy. You have to work to get the job done.
