Some real estate investors will say that it takes money to make money in this line of business. This is partially true. What may be true is the fact that 90% of all the people in the real estate business need money to make a profit. Money is first and foremost created in the mind before it becomes an actuality. This is why the coined term "making money" exists.



Making money in real estate investing rests on the fact that you can see value in a property no one else sees and can sell this property for much more than its selling price. Anything that happens in between like finding the money to buy the property is just problems you have to find the solutions to. Looking at it this way, money is a solution to a problem but never a requirement in making money in the real estate business. Here are a few ways to make money in the real estate market on a shoestring budget.

Lease Option. A lease option involves gaining control of a property without ownership. With a lease option, you are given the right to use the property now with a corresponding contract that you will be able to own the property at some future specified date with the terms you and the owner agrees to today. By using the lease option, part of your rent will be credited towards the purchase of the property. This means that you will not have to shelf out a large quantity of money in order to gain the right to purchase the property. To make a profit using this option, all you have to do is to find someone willing to lease the property at a higher price than was offered to you. Finally, transfer the lease then take home your profit.

"Subject To" option. "Subject to" option on the other hand involves the transfer of the owner's mortgage responsibilities to the buyer. This means that upon getting the deed for the property, you will be the one who will continue the mortgage payments for the property. Of course, having the old mortgage still pending, you will not be able to apply for a mortgage yourself in order to acquire the property.

The benefit for the home owner in this case is that he will be free of monthly payments he cannot afford while you will be able to acquire the property without any down payment. Of course, the mortgage payments should not be too high and you have to be sure that the value of the property will appreciate in the near future.

Real Estate Matchmaker. Lastly, you can always make money in the real estate market without owning or selling any properties. By being a real estate matchmaker, money is made through finding sellers willing to sell a property in a certain location for a certain amount and finding a buyer willing to buy that property at a higher selling price. The difference between the buying and the selling price is your profit.

Copyright (c) 2007 Jacques Coquerel