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Getting paid in real estate involves knowing some good techniques. It may not be in the cards for you to become a full time investor, however, a few techniques will help you save money buying every time. Here are the top 7 insider real estate investment secrets for free that will make or save you a lot of money on your next home purchase.

1. Property must come with a discount

Property discounts can happen a lot of different ways. One example is getting your property for favourable terms as many buyers do not realize that price and terms are essentially the same thing. Understanding what would cause a seller to give a big property discount is the most important thing. Knowing this will allow you to find the right set of circumstances that will allow you to profit. That’s the benefit to a great set of real estate investing secrets. The circumstances of the seller will determine when a good deal is possible as the home location is usually irrelevant. Those circumstances are something great investors are always marketing to find.

2. Know how cheap the seller will before you even show up on the scene

Many people confuse an “asking price” with a “selling price.” Asking price means almost nothing if you ask any experienced real estate investor. The asking price would be the “getting price” if it did mean something but that rarely happens. It’s important to get a cheap price without ruining the negotiation so here’s a good technique that will help you. If you like a home, have someone else go into the home and make a lowball offer under their own name that they can escape or void. It’s a “temperature taking” offer that will allow you to find out just where the seller is at is far as what they will accept. It gives you insight to know just how flexible the seller is on their price. Often they will counter back at 10-20% off of their asking price. Your negotiation will be unaffected but you’ll have that advanced knowledge. You’ll save yourself 10s of thousands of dollars and a bunch of time by knowing where your seller is already at. The best part is that they will never get offended by anything you’ve done either as they think the lowball offer came from a completely different source.

3. Make sure you can void your contract after signing it

Residential real estate contracts typically include clauses like “offer contingent upon home inspection within XX days.” Include those terms on your purchase and sale agreement. You do not need to prove you did a home inspection or that it actually met your terms. You can use this void option to back out if you are unable to put your deal together. Controlling a property through a contract is just like owning it which is why good investors make escapable offers all the time. The risk is actually minimal when you can back out of a deal that you haven’t already resold.

4. Homes aren’t like playing the lottery

“Hey, I am taken by the brochure of that mutual company so I am going to buy some shares.” It sounds silly[spin] but most [spin]people don’t give much more business analysis than that to purchasing real estate. If the numbers don’t show you that your investment property will be profitable either take the time to do the analysis and find a good situation or don’t buy it. A second property can have a large time commitment involved so just imagine if you were going to lose money on it. Real estate investing without scrutinizing the numbers is just like playing the lottery.

5. Have multiple exit strategies

You’ve probably heard on the TV to “buy, fix up, and flip.” The problem is that real investors don’t make money that way and nobody gets rich from generic spoon-fed public ideas. For instance, without the management time involved, holding secondary financing often pays the same thing as being a landlord. Make sure to know what all your creative options are before you take title. If you buy and then go looking for a renter, you’ve already lost. In your repertoire, at least know how to lease-purchase, create paper and wholesale before you just buy and rent.

6. Fix up and renting are not all they’re cracked up to be

It’s fairly typical to make about 10% per month on a rental property. Consider that if you’re renting for $1000/month, you can anticipate about $100 profit per month. Is your time worth a lot of work for minimal profits? Are you willing to fix toilets, roofing and heating for $1200 per year? There is a reason creative strategies were invented. Think about how the bank collects on your property without having to physically manage it. Learn to make a profit without spending all of your time.

7. Marketing

You can either go out and find a great deal or you can learn to market so that great deals come to you. business specialists like mortgage brokers and real estate agents keeping their eyes peeled for you for the right fit. If you’re really serious about making money in real estate, take hold of your own creative marketing strategies. Realtors and brokers don’t really do any investing so although they can find some good deals, the best deals aren’t something they are accustomed to investing in. That means the really great deals never go through them and it’s up to you to develop a marketing system to capitalize on those very lucrative deals.

The most prevelant secret is that the best deals always go through investors who know how to find them.

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