7 Main Types of Deals
Real estate is a means of creating and preserving wealth. It is just a means of obtaining your life’s goals.
Do you have long-term (5+ years), few years (1-5), and short-term (1-12 month) goals?
Creating wealth:
• Better than other investments b/c don’t need to have money or credit. Compare to stock market.
• Not as risky or time-consuming as starting a business. 4 of 5 businesses fail. Whereas, if you buy a house
worth $200,000 for $120,000 it’s hard to lose.
• Can have immediate profits. Can quit anytime by selling.
• Some people make real estate their business full-time—not recommended until you have done quite a few
deals. Problem is cash flow like anything else.
• Business may provide greater rates of return. Ex: What is your return on marketing? If you can beat that,
buy real estate. If not, why bother? Stick with what you know.
Preserving wealth:
• Many successful people who make money in business or their profession use it to buy real estate.
• Real estate has always gone up or at least held its value in the long run. Has made more millionaires than
any other investment vehicle over time
• Diversifies in case business fails, can borrow against it
• High returns are possible—10% to 100% or more with time involved
7 Ways to make money in real estate—compare each of these with your long and short-term goals.
1) Wholesaling _______________________________________________________________________
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2) Retail _____________________________________________________________________________
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3) Options ___________________________________________________________________________
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4) Lease Option _______________________________________________________________________
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5) Seller Financing _____________________________________________________________________
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6) Rental Keepers_______________________________________________________________________
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7) Financing _________________________________________________________________________
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