Creative Investing

Buying Real Estate

Podcast Episode 79:
Creative Real Estate Strategies.”

What is Creative Real Estate Investing? It is a method for making money with real estate that uses strategies like Rent-to-Own, Agreements for Sale, and Wholesaling, among others. This is an area not too many people know about, but it offers some tremendous opportunities. One of the things that differentiates Creative Real Estate Investment from the traditional Buy & Hold approach is that it works on a much shorter timeline.

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Creative Real Estate Strategies

Now, if this is all brand-new for you, then read on for a quick summary of how we look at Creative Real Estate Strategies. But first let me tell you about some of the exciting things I have in store!

I run interactive Focus Series Workshops on these techniques and also offer ongoing mentoring through my Rapid Cash Program; now I’m planning on bringing more Creative Strategies to my blog and podcast too. Attendees of my events get to learn from experts, listen to actual telephone calls made by our specialists to potential sellers, do hands-on exercises in how to write up deals, and get individual coaching from our Focus Team.

What’s the best part? Some folks think it is the six months of post-Workshop coaching that really seal the deal for the Rapid Cash Program (RCP). My wife Donna and I are determined that every one of our Workshop participants has every opportunity for success. We think that means not just a fantastic teaching and learning event, but also coaching and mentoring over six months to ensure your enthusiasm and Workshop knowledge is actually put to work.

The next best thing to attending my Focus Series and/or signing up for the RCP is the home-study program I’ve been putting together for Creative Real Estate Investing, starting with Rent-to-Own Success in Canada.

Our slogan: “just one damn deal”!

Our amazing Rapid Cash Program is relevant no matter where you live in Canada. When we did our Focus Workshop in Edmonton, we had lots of people from BC and Ontario. When we did our Workshop in Toronto, we had lots of people from Alberta, BC, and other parts of Canada. Anyway, enough about me telling you how great the Workshops and RCP are. Let me tell you a bit more about the Creative side of things.


Buy & Hold or Get Creative?

 

Most of us follow the classic, time-tested Buy & Hold strategy for real estate investing. We just like, understand, and appreciate the rock solid, fundamental aspects of Buy & Hold. I bought my first investment property in 1972. Since then, 90% of my purchases have been Buy & Hold, and my sweetie pie Donna and I still own 22 doors. We love Buy & Hold!

Let’s say it again. We think that Buy & Hold underpins any long-term real estate investment plan. There’s just no substitute for solid properties in great areas filled with amazing tenants who treat our properties well, make our mortgage payments, and pay us positive cash flow every month. We think everyone’s long-term real estate success is well served with the Buy & Hold strategy.

But, there is a whole other world of possibility
in a series of legitimate real estate strategies
that are short-term rather than long-term.

These strategies generate cash now, or at least in a much shorter time than traditional Buy & Hold. If you put in the time and effort to educate yourself about these techniques, you will learn to recognize opportunities as well as have the detailed knowledge to take advantage when one presents itself. Or, instead of just waiting for an opportunity to present itself, you might want to build a new aspect of your real estate business with one or more of these Creative Strategies that will augment you our existing Buy & Hold approach.

Over the last few years, interest has increased dramatically in Creative Strategies. I like to think we led the way in rehabilitating Lease-Options from its often sleazy, scammer reputation to a point where there is considerable discussion and great interest, not only in Alberta, but also across Canada. A number of educational groups and other real estate organizations are now preaching the benefits of Lease-Options. Seller financing strategies are alive and well.

I have been getting more and more questions about aspects of Lease-Options, Seller Financing, and Creative Joint Ventures that go beyond the straight legal side. These questions surround issues like marketing; how do you actually find deals or clients? Once you find them, how do you pitch the deal quickly and in everyday English that anyone can understand?

What about due diligence on your potential tenant buyer or Joint Venture Partner, how do you analyze or qualify them? What about a team; you can’t do all this on your own, can you? What about keeping those deals and clients on the straight and narrow as you work your way through some of these shorter-term Creative Strategies?

Financing is also important. What do lenders think about Creative Strategies; is it possible to access take-out financing? And, how to close deals where you aren’t the titleholder? With lenders and title insurance companies being edgy about mortgage fraud and money laundering, how do you deal with title issues?

Over the past five years, documentation has changed. With new interest in Creative Strategies generating more deals, the diversity of clients and situations has led to numerous improvements in our supporting documentation at RMLO Law LLP and through my Investor Tools.

But to sum up, the last few years have brought a huge number of multipronged questions, not only on Creative Strategies generally, but on the numerous technical aspects of how to successfully implement those strategies.

Maybe the thing to do is give everyone a chance to get an overview of strategies with more focus on the subtext of each individual approach. My Deal-Ready Documents are a helpful supplement here, but the last few years have shown us that it’s not just about documentation. It’s also about understanding the strategy, marketing, pitching the deal, qualifying those clients, creating a successful system, and actually closing the deal. Stay tuned for more on Creative Real Estate!

 

Contact Barry McGuire now. Alberta real estate needs an Alberta lawyer.

“Home Yellow” stock image by nikcname. Used under Creative Commons Attribution Generic 2.0