Real Estate Investing 101
As a real estate investor, your goal is to purchase property for profit. There are two basic ways to invest in real estate—you can "buy-and-hold," or you can flip properties. Most buy-and-hold investors focus on long-term appreciation and cashflow. Meanwhile, investors who flip properties (also known as rehabbers or wholesalers) purchase houses at a discount, renovate them, and then re-sell for lump-sum payments. The option you choose
will depend on how you want to make your money, and how much time you have available.
Flipping Properties (Rehabbing or Wholesaling)
If you decide to flip, you should focus on buying houses below market value and reselling them for what they're really worth. Most real estate investors who flip properties perform repairs and renovations before reselling. These repairs and renovations increase the market value of the home. After renovations, the investor puts the house up for sale, expecting to sell the property for more than he paid for it.
If you prefer not to complete repairs on a property, you can wholesale property to other investors. Wholesaleling properties is less work than rehabbing, but normally the payoff is less. Generally, as a wholesaler, your profit will be lower than rehabbing, but the benefit of wholesaleing is that you don't have to deal with construction crews or repairs.
Renting Properties (Buy & Hold)
When you buy a house, the mortgage payment is usually less than the rental rates for that property. This is especially true when you buy the house for less thTulsa interest rates, an market value. The buy-and-hold method of real estate investing allows you to profit each month from rental income, plus you get the benefit of long-term price appreciation.
For example, let's assume you purchase a $100,000 house. Your mortgage after taxes and insurance is $750/month. You rent out the house for $950/month. Each month you put $200 in your pocket. Rental income can produce a consistent and predictable monthly cashflow; however, you need to properly screen tenants
You can also lease-option your investment properties. Lease options are commonly known as "rent-to-own" deals. This type of arrangements is a wonderful alternative for people who want to purchase a home immediately but may need some time to improve their credit score or save money for a down payment. As an investor, you make money from an initial option deposit (normally several thousand dollars), which gives the tenant the option to purchase the home at a pre-determined price in the future. In the meantime, however, the investor receives consistent monthly income in the form of rental payments. Lease option deals are a great way to profit upfront (from the initial option deposit) and over time (from the monthly rental payments).
You can use our network's financing to buy your properties. Put the money that you would have spent on a down payment towards rehabbing your properties, and resell-them for top dollar. Our financing network can pre-qualify your buyers for a no down payment loan when you go to re-sell your properties. By advertising "100% financing" on all your houses, you will sell them much faster.
ZFG Mortgage Oklahoma
6670 S Lewis Ave Suite 200
Tulsa, Oklahoma 74136
Toll Free 1-877-205-7266 | Fax: 918-459-6535
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