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Profitable Business and Real Estate Wealth Clues

Buy Property and Access Hidden Deals Here

Wisely Buy Property or Lose Big

Do you think you can go at it alone? Maybe you can…with accurate information.

You can even buy property directly from us.

It doesn’t matter whether you plan to buy property or prefer to buy notes (secured by property); there are a few things to know either way.

Know how to analyze the real estate market cycle; especially, at the local market level.

Know how to determine asset value (price) in ten minutes or less…there’s more than one way.

Likewise, assessing the value of a single family residence is slightly different than calculating the value of a multi-family commercial property.

Know there are multiple ways to buy property that we will explain here. Before we describe how, remember these simple truths.

Buy property with the correct information or stand to lose a lot of money.

The first rule is never buy property using median home prices to assess real estate value (price) trends. Median home prices are the absolute worst metric to use when observing real estate market trends.

In other words, if you plan to buy property using the estimates from Trulia, Zillow, Redfin, Forbes Magazine and others…good luck.

Wake up already…

How many times have you heard the hype, “currently the lowest interest rates in history?”

Wake up folks. When you buy property or plan any real estate investment, the interest rate is irrelevant. What IS relevant is the debt constant on the loan relative to the Cap Rate...not the interest rate.

And if you ever work with a real estate broker who tells you that Cap Rate doesn’t matter in residential real estate…find a new professional.

This is why all of America is broke. Because folks are taking advice from mortgage brokers, attorneys, real estate brokers and etc…that have no clue what a debt constant is (loan constant).

More Nonsense…

Here is the best way to make the bank even richer…and you poorer. Buy property with a 15-year mortgage. The absolute worst advice yet folks are advised by “experts” all the time to buy property with a 15-year mortgage.

If you plan to buy property or buy notes from HK Creative Investments (or anywhere for that matter), we want to be sure you are well-educated.

Whether you plan to buy property from us or plan to hire us for buyer representation to locate and evaluate your next real estate purchase, shop for property here…we can help.

The Game of Golf…

Isn’t it a known fact that stepping on the ‘line’ between the hole and an opponent’s golf ball while on the putting green is bad sportsmanship? The same can be said when you buy property and “re-trade” continuously.

What is ‘re-trading?’

Very simply, “re-trading” is another word used for re-negotiating on the terms of a deal. Therefore, when you buy property, “re-trade” on important items only.

For example when the property inspection reveals that a roof or furnace needs replacement and you were not informed of it upfront…certainly “re-trade.”

Also, when buying commercial property, definitely “re-trade” if the financial due diligence you performed on the property reveals that the owner misstated (lied about) the property’s net operating income. Use your inspection period wisely.

If you constantly “re-trade” on minor items when you buy property, don’t be surprised if you lose the deal all together to other buyers who are not a pain in the seller’s butt.

What About Banks…

“Re-trading” on bank owned properties…absolutely no.

This leads us to a term in real estate known as “AS-IS.” When you buy property “AS-IS,” it implies exactly that. In other words, the seller is making no alterations to the property to benefit the buyer whatsoever.

REO bank owned properties and short sales (most all distressed property) are sold in “AS-IS” condition for example. Professional investors can easily buy property “AS-IS” because real estate investors have a team of people that can renovate property.

In fact, investors prefer to buy property with defects because the purchase price is lower. If you do not want to buy property that requires the ‘brain damage’ associated with construction, repairs and tenant lease up…simply buy notes.

Buying notes (secured by property) requires the least amount of effort on your part…actually no effort.

The return on investment when you buy notes may actually outperform the return on investment where you would own the property (depending on the deal).

Otherwise, to avoid the ‘brain damage’ of real estate operations, invest in a real estate fund or as one of our Inner Circle Members.

One last point on buying property “AS-IS” involves the Lease Purchase transaction (rent to own homes). If you plan to buy property on a ‘lease with the option to buy’…”AS-IS” will likely apply.

In other words, when you buy property on a lease option, the fact that you will control and/or live in the property before you close on the purchase implies that you had enough time to inspect the property.

That’s the advantage of an option contract…the ‘right’ but not the obligation to buy property. The ‘option’ contract allows a buyer to control a property without the risk of taking delivery of the deed upfront. As you know, there are risks when you own Title to property.

Outside from buying property using a Leas Purchase (rent to own) agreement, here are the other ways you can buy property.

Assignment Contract…

How does the assignment contract work?

It is very simple.

When HK Creative Investments (or any investor) enters into a contract with a seller to buy property that the seller owns, that contract can be “assigned” to another buyer…for a fee. The “assignment fee” is negotiable.

In other words, an investor can enter into a contract with a seller (as a principal in the transaction) to buy a seller’s property. Instead of closing on the sale of that property directly, the investor can choose to “assign” the contract (and the rights under the contract) to another end buyer instead.

Then the new end buyer (could be you) will follow through and execute the purchase agreement to buy property with the original seller.

For the end buyer (which could be you) it’s as easy as 1-2-3.

Real Estate

Why on earth would you want to pay an “assignment fee” to assume the ‘right’ to buy property under the original investor’s contract?

Moreover, why on earth would a wholesale investor (middleman) want to assign you the contract to buy property to begin with?

There are a few very simple reasons that benefit each party:
Buy Property

Traditional Purchase Agreement…

Typically, when you buy property the traditional route, you might prefer real estate broker representation and the seller might have real estate broker representation (although not always).

In a sense the same thing happens as with the “assignment contract” just without the assignment step.

In other words, there is a ‘middleman’ (brokers) that connect the dots between the buyer and the seller. The main difference now is that the broker has not entered into any agreement to buy property from the seller.

The real estate broker is simply performing work for others (not as a principal in the transaction).

Whether you buy property via an assignment contract, lease purchase contract or any type of contract, what matters most is the property, the terms and the final price. This again brings us back to accurate information and due diligence.

All you need is the money to buy property and accurate information to find and evaluate the opportunity.

We can help you buy property…shop here.

Buy LLC Member Units…

Buying membership units in an LLC is another way to buy property. This method to buy property is rarely used…but very powerful.

Without going into too much detail on why, just know that this process may be used when the need arises to buy property that is owned in an LLC.

Under certain circumstances, the seller is inclined to sell the LLC Membership Units (vs. selling property out of the LLC).

Repeat. You buy the LLC Membership interests from the seller; not the property. The property is an asset of the LLC (the LLC owns the property).

Don’t worry, once you become the new Member (owner) of the LLC, you can do as you please with the property. You can choose to keep the property in the LLC or not…up to you.

Whether you plan to buy property all cash or for tax free growth using your self-directed IRA retirement funds (no money out of pocket), contact us today.

There has been no better time in history to buy property. Buy property or buy notes to grow your wealth with real estate here.