By Chris Knoppe, Ohio Rehab Loans

Thanks to banks tightening their belts while attempting to survive the self-inflicted financial crisis, real estate investors are now forced to become more creative in order to get deals done and make money.  No longer can a mediocre credit score get you all the financing you need.  Investors are re-visiting real estate strategies that were momentarily disregarded as outdated and ineffective.  Land Contracts, Buying Subject to Existing Financing, Owner Financing, Lease/Options, and Private Lending are once again required curriculum for the successful real estate investor.  In recent discussions with investors, I have noticed these terms being thrown around with much greater frequency.   All of these strategies are filling the massive void left by the crumbling banking system.  The bad news is that investors have to be more creative to make money.  The good news is that investors can make money by being creative!  Sellers are also more receptive to these ideas because right now they don’t have a choice. 

If you are looking for an entry into real estate investing, an easy way to start is by purchasing a house using one of these strategies.  With minimal money out of pocket, you should be able to: 1) buy a house by taking over the seller’s loan on the property; 2) Lease a house with the option to purchase it while you earn cash flow or find a buyer at a higher price; 3) Team up with a Private Lender to Buy & Renovate a House (give me a call if this is a the route you want to pursue!); 4) Purchase or sell a house with owner financing; and 5) Purchase or sell a house on Land Contract or Lease/Option.

Unfortunately the banking & foreclosure mess that is pulling down the economy is going to take a while to sort itself out.  But, rather than using that as an excuse to do nothing, use it to your advantage by being creative.   Everyone seems to know that there are fantastic real estate deals available right now; the tricky part is finding a way to make it work.  Having several strategies in your tool box allows you to find a way to get it done.  If you are a beginner, aside from educating yourself (with reading material, etc.), the best way to learn is by teaming up with someone who has done it before.  In doing so you will reduce your share of the profits, but that is a small price to pay for gaining knowledge that you can use over and over again.