When a real estate market is hot, many of the professional investors will slow or stop their buying, but the speculators will be eating up the hype and frenzy and be actively looking to buy.  So during hot market times you want to be going to as many inexpensive investor networking events as possible to meet these speculators.  Many of these events have a time period allotted for attendees to present their opportunities in front of the group.  These events often have 30-40 investors in the room and very few real estate professionals, so this can be a prime opportunity to make some sales.   Continue reading →

Even if it’s a hot real estate market, there’s still a chance to get Assigners these properties.  If you can put together a group of investors to collectively buy 10 or more units through you, chances are the developer will allow these units to be assigned once they are built and ready to move into.  Imagine making 10 sales in a single day!
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An investor who understands this opportunity and pays the assigner the $5,000 for the contract would have an instant $15,000 equity in the property if the market value of $200,000 is correct.  If the assigner has difficulty in selling the contract, and the deadline for assigning is looming, they could lower their assignment fee, making the case for how an investor could get $18,000 in instant equity for a mere $2000.  That’s a pretty tough proposition to turn down! Continue reading →

If they don’t like the home or can’t meet one of the contract stipulations like a down payment, they walk away from the home.  If they buy the house, they will do so at a price set in the original contract.  The buyer will assume the mortgage and will also get their rental payments put towards equity in the property.  If they walk away, they lose all their monthly payments, just as any renter would do.

With lease-to-own situations, everyone wins.  The home buyer wins because they get the home they want.  The investor wins because they have an investment with a guaranteed rate of return.  You get the commission you probably would have otherwise lost. Continue reading →

So a big question real estate professionals have is: “how do I know the speculators from the professionals?”  The best way of knowing this is finding the professionals yourself, and this isn’t difficult.  Professional investors regularly post classified ads online looking for motivated sellers.  You’ll know them from the sophistication, evident experience and level of detail in what they write about.  There are usually lots of investor clubs in most large cities.  In Toronto there is one group called the Real Estate Investment Network (REIN) who meets monthly and has 1000 members.  It costs $3000 per year to join this club, members must pay for the entire year up front, and guests are rarely allowed, so you can bet conditions like these keep most of the time-wasting speculators away.  If you live in a small city or town or a rural area, look online for real estate investor forums with members from your region.
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The problem with speculators is they’re more difficult to deal with than even indecisive home buyers because a) they don’t have a clear idea of what properties they want and b) they’re not buying for themselves, so they don’t get an emotional attachment to properties as home buyers do.
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