There are many courses which purport to show how to invest in real estate

While there are many courses which purport to show how to invest in real estate, only a few actually tackle emerging markets in our country precisely because there is a lot of skill required to correctly identify them and then take advantage of them. If you are not yet ready to leave the rat race behind and embrace a future where your hard work allows you to enjoy anything you really want then maybe you are not ready to take advantage of any kind of real estate investing, never mind investing in the tough environment of an emerging market. The first thing to tackle of course is your own motivation. In order to be successful in any kind of real estate investment in an emerging market you need to do some careful analysis, you need a lot of drive and the vision to see what few others can see clearly at that stage.

With a long lease option, you can then sell the property for high price

A lease option has more longer term than a straight option - usually for a period for as long as one year or longer. Some lease option will even stretch to three years, depending on the whim of the seller. While your lease is ongoing, you can rent out the property and be in a positive cash flow. The second advantage is that the property is appreciating in value. If you have a longer lease option, you can then sell the property for the highest price you can get. Most new investors, and plenty of more experienced ones too, like to stick to what - and where - they know when it comes to investing their hard-earned cash in equities.

Emerging markets

Emerging markets are which are in the grip of a sudden growth or are in receipt of government incentives which help spur growth. A savvy real estate investor will be able to understand what makes the emerging market attractive - by learning the trends right from the start. In this perceived simplicity hides a world of some complexity on how you correctly identify an emerging market, how you go about finding the right real estate investment opportunities in it for you and how you then go about taking advantage of these while minimizing the risks, as much as possible, for yourself. A savvy real estate investor identifies the opportunities in real estate properties that he should invest in and makes the maximum amount of money in the shortest time possible.

Seller financing

If the seller does not need immediate cash, they may consider to finance you. You can write a mortgage contract, agreeing to pay the seller a fixed percentage rate, and set monthly payments. After you sell the property, you can then pay off the mortgage note to the seller. Whatever way you look to finance your real estate investments, make sure your cash flow calculations work. The financing will be easy to find if you have good cash flow numbers on your deal. Money is required to do a deal, and no-money-down means that you do not put any of your own out of pocket funds into the investment.

Hard money lenders

Hard money lenders are those who specialize in real estate investing. They will normally lend up to 70% of the after- repair- value (usually said as ARV), on your property. Hard money lending is only a short term financing, and the interest rates are very high. It is sometimes 14% or more, but unlike with normal banks and their financing, Hard money lenders will get your funds to you fast. Normally this is sanctioned in installments as work is completed. Hard money is good for those who need to get funds fast to do a deal.

Private investors

Private investors are the ones’ who have the cash readily available, but do not have interest to actually work for themselves. They are ready to spend the money and harvest a certain percentage of the deal. If we find a property to invest in, these private investors will offer you the funds that is needed to finish the deal, or they will undertake financing of the property. The terms and conditions we will have with the private investor would vary as per mutual agreement. Exactly as you will deal with a bank application, learn that you have sound fundamentals on the property and how much expected profit there would be on the deal. The better these figures, the more likely you will find a private investor.

Conventional bank mortgages

Some investors forget that banks are willing to lend money for investing. If you have a good credit record, conventional bank mortgages may be the best option. You can get good and favorable interest rates with a good credit record - the higher the credit score, the lower will be the interest rates. While planning on a single family house, we can apply for residential mortgage, and this automatically has lower interest rates than any other sorts of loans. Some banks will not be willing to lend more than the actual value of the home. In this case, if the home needs major repairs, speak with them about another loan for the balance money you need for this purpose. You should make sure that you shop around – because the rates, fees and terms will vary from lender to lender. The suitable way to do this is to consult with a mortgage broker, who can find the best rates.