The real estate investor’s quest to add more properties to their portfolio is an exciting path that leads to generating multiple income streams. To engage in rapid real property acquisitions, an investor must have a few clever tricks up their sleeve. The following are four important strategies that will aid a savvy investor in rapid real property acquisitions.
Getting on the Title
People in foreclosure stand to lose their home and will take a massive hit to their credit in the process. However, it is possible for an investor to take over the payments on a property by having the homeowner allow the investor to get on the title. The original owner will have to vacate the home, because the investor must get a renter in place quickly to let the rental income pay for the mortgage until enough equity is built up in the home to give the investor more options. Often this can be done as a means to save the original homeowner’s credit from being completely destroyed, and the savvy investor may give them a small monetary incentive as well to help them transition out of the home more easily.
Going After Probate
Once a person is deceased, they may have no one to inherit their home, or the heir who might be in line to inherit the home may live in another state and not want the tax burden of inheriting a home. This makes probate homes ripe for the picking for a savvy investor. By dealing with the executor of the will or with the heirs, a savvy investor can sometimes pick up probate homes quickly for pennies on the dollar. It is important to do homework on properly understanding the bonding and authority of an executor as stated in a will to know when there is a good deal available to the investor in probate.
Purchasing Tax Liens
One way savvy investors obtain homes with reasonable speed is by purchasing tax liens. If the homeowner defaults and does not pay off the tax lien recorded against their property, then the home will inevitably come to belong to the investor who holds the tax lien. Even if the homeowner does pay off the tax lien, it is done with the addition of a decent rate of interest that makes this a lucrative investing win for the investor no matter what happens.
Skipping the Real Estate Agent
In a lot of cases, working with a real estate agent can slow things down for an investor. To get around this, it can sometimes be far quicker and more efficient to work with a real estate law firm instead. A real estate attorney can often help to expedite the process—especially if you prefer to use real estate purchase contracts with addendums that require a bit more legal expertise than a real estate agent or a broker would be able to provide.
With a little knowledge, it is relatively easy to move real estate purchases rapidly into an investor’s portfolio. This will make it possible for the investor to generate a great deal of passive income, and to take advantage of all the tax breaks that goes with owning multiple properties. Before an investor knows it, the opportunity to turn massive prophets on their real property holdings will be well within their grasp.