One of the most important concepts a real estate investor needs to learn is how to “flex†with your market when buying and selling real estate properties in a sluggish market and the importance of knowing several strategies for buying and selling properties within your market.
One of the best ways to do this is by learning to be a “transaction engineerâ€. This is of utmost importance when dealing with a variable real estate market. By “transaction engineer†I mean a person who understands a variety of strategies to purchase real estate properties effectively and without risk, and who has a variety of exit strategies at hand depending on what the current real estate market is doing.
If you are able to learn a variety of buying and selling strategies for your real estate business, you will be able to do a lot more real estate deals no matter what your market is doing. For example, where I live here in Florida, it is currently somewhat difficult to sell real estate properties in the traditional way due to an over abundance of properties available and the difficulties with procuring a mortgage in our current market.
This situation enables me to buy a lot of properties using a variety of creative strategies that do no include getting a mortgage. We use strategies for purchasing real estate such as getting houses “subject to†the existing mortgage, getting options, or sometimes even lease/options.
We then rent these properties, lease/option them or use the round-robin technique to get our real estate properties cash flowing quickly for us.
In addition, we have also added other types of buying strategies to our portfolio of deal making opportunities. For example, if houses are difficult to buy and sell, we also buy and sell vacant land. Here in Florida especially, this is a really great strategy since there is no insurance or repairs with vacant land. If there is a weather event such as a hurricane, there is very little damage that can occur. There is also a lot of money to be made quick turning vacant land and land is always a viable commodity even in a stale market. You need to use those strategies which will bring in cash today.
Take a look at your own market to see what buying opportunities are available to you even if your real estate market is stagnant. You just need to learn marketing strategies and selling strategies and learn to “think outside the box†so you can continue to make a lot of money in the real estate business no matter what your market is doing.
For more information on marketing strategies to buy and sell real estate properties including vacant land, check out Kathy Kennebrook’s website at http://marketingmagiclady.com .