Your broke, bad credit, and 65 years old. Don't despair you can invest in Real Estate, and make enough money in the 2nd year of investing you will be sending the Social Security checks back to the Feds. Investing in realestate is pretty simple really. There are many people in your community that have a problem and cant pay their mortgage. This is where you come in to solve their problem, if possible in a win win situation. Births, deaths, divorce, moving to a new job out of state are but a few of the situations where people want and need to sell their property. Don't think of it as investing in Real estate but problem solving for people that have a problem.

Fear is the greatest roadblock for people wanting to invest. Going out side your comfort zone isn't easy, but if done one step at a time is not hard to accomplish. Open up your local newspaper and look at all the apartments for rent, do you believe these people have a problem. They most certainly do, no renter equals no money coming in. One or more of these owners in this long list just might be motivated to sell their property.

Lets start right now to learn to invest and the first step in conquering your fear. Your first call is to gather information, where is the property located, its condition, rental price,does the owner have a mortgage or is it paid for, is it a single apt or a duplex, and any other information the owner will share. Would you live there, and lastly would the owner sell the property. The owner has said they would sell the property, as he is moving to Texas to retire and live close to his children. I think this guy might be motivated to sell his property. The next step is finding out the actual value of the property. Most any Real Estate agent can help you with this, and knows value of this property. We now set up a negotiation with the seller. As we now know the value of the property we want to purchase 30% below that value, this gives us instant equity in the property and is the profit in the deal. Remember if we can't make money on the deal its not a win win situation. Negotiation is not hard if we start with the easy stuff like will the drapes stay or not? Are you leaving the washer & dryer? The 1st person to mention price in the negotiation loses. Example if you offer $120,000 first the seller just might have sold for $100,000, and you have just lost $20,000 on the deal. Finally we have agreed on the terms of the deal and it fits our guidelines of a win win situation. We now have control of the property through a buyers contract. No money has passed hands, and we now have some decisions to make as we control the property. We can keep the property, flip the property, assign the contract, auction the property, trade the property, and a few more. one of the easiest to accomplish is to assign the contract to another buyer. We have a contract that allows us to purchase the property at 30% below market value. There are investors willing to buy our contract at 20% below market value in a win win situation that will give us 10% of the purchase price. If the property is being sold for $100,000 this means a quick $10,000 in our pocket at closing time. We have not spent one red cent of our money, our credit has not been checked, and our hands are still clean, as we didn't have to pick up a hammer or paint brush. Congratulations, you are now a investor. Although this was a simple presentation the real deal is not that much harder. Remember Donald had to get over his fear also before doing his first deal.

Learn more about this author, Enriki Diaz.
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