www.macombinvestments.net | A Real Estate Investment Company

There are so many ways that you can make money from selling real estate in today’s Macomb County Real Estate Market. I elaborated on a strategy earlier in the year regarding land contracts or lease with an option to buy (reference back to Strategy # 1 on blog). I wanted to go deeper into this subject for a minute to break down a couple reasons this may be worth your time in the long run. I like hearing people having good stories about real estate. So many people hear one bad story and they bash whatever it may be that they heard that one time. Is real estate risky? Sure it is very risky and takes a lot of work to make sure the risk is minimized. It’s so important to know how to minimize a risk while investing. Most Realtor,s that are going to sell a home to another investor don’t have any clue what it is to make an investments. Most Realtor's look at the retail end of the business and never the owning of investments property.
    Land Contracts right now make sense for somebody that wants a steady interest on there money over a long period of time. There is a risk and the risk lies in the occupant that will go into your property. There are a lot of people that have lost homes in the market that we live in today. This makes your decision hard at times because if you are going back and looking over people’s finances there could be some heavy marks on there credit especially regarding foreclosure. With banks they aren’t going to want to finance people with these marks. Know that there are good people that will pay you that suffered from lose of job that have found employment again that will want to buy a home. These are the people that will need financed held for more than 3 years. I was sitting in a meeting the other day and this subject was brought up and it made much sense. Yes you can hold for 2-3 years and sell the property and do it again. Another way to do this is to hold long term mortgage for that client at 30 years so that you can earn the interest long term on the money.
    The nice thing about land contracts is you are not the landlord and there is no tenant. They become owners so you are not responsible for any maintenance on the property. To me this makes sense for an investor that has some cash sitting around and they want to earn a moderate return on the interest earned on the money. Of course a relationship will need to be established with that buyers so that things run smoothly over the years. It could turn into a very profitable relationship on each end. So my thought today if you are advanced or novice investor and want a steady stream of interest earned on an investment with you having control over try a long term land contract.

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