Creative Real Estate Strategies For 2009 – Part 2
Yes the real-estate bubble burst! Yes the current economic outlook is not bright! All of us struggling just to get by! But there really are some real estate investing strategies that will be profitable in 2009!
I think there are at least two. In this article you'll learn about Master Lease Options (MLO) and how you use them to create massive pay days.
What are Master Lease Options in commercial real estate investing?
Overall there are four steps which describe this strategy:
- You get owners of income properties in good condition who are tired of owning their underperforming property to let you cure their headache by leasing their entire building for no more than it's currently renting for each month.
(This means you are break-even right at the start) Sweet deal uh! - You also get an option to buy the property in the future at the current value.
(note that it's current value is based on how much income it brings in right now) - Then, you improve or replace the management and get the property performing to its potential by increasing the income (and keeping 100% of every new dollar).
(easy to do!) - After that, you exercise your option to buy the property for pennies on the dollar, because it's now worth much, much more than your option price.
(Ka-Ching! - You could make hundereds of thousands on one deal)
How cool is that for real-estate investing?
You don't need a bank loan, you don't risk any of your own money, and you just try out the property to see if it can be improved. If not you're done with it. pretty straight forward, eh!
The only place I've heard of this incredible commercial real estate investing strategy is from Jason Gilbert at the Commercial Training Institute.
