What are the best types of real estate investments with the most returns for your time and trouble? There are lots of ways to structure deals. These are what I’ve found to be the best ways to do it so that you make the most money from them.
“Define for us the criteria of a good real estate investment.” – David
There are two types of deals that you’re looking for. The first is properties that are substantially under market value that you can either buy for cash or assign for a fee to another investor. The second is properties that you can buy at closer to market value or lower (the lower you get, the better) but you have to get them on terms.
That means “Subject-To”, “Multi-Mortgage”, lease option, land contract or contract for deed; those types of things. You can take those properties without any cash down and without any credit. You can do both of these types of deals but those are the only two types of deals that you’re really looking for.
There’s another additional type of deal which involves getting properties for 80-85% of market value and selling on auction. Even though they’re not substantially under market value, you can still make a profit on those deals by buying them and auctioning them off and doing simultaneous closings.
That’s been something that’s really worked very well for us. On those auctions, we’ve been able to get 250 people to an auction, and all of the real estate agents in the neighborhood are going crazy wondering how we pulled this off. So, good stuff.