When you’ve been investing in real estate for a while, you often end up with a few properties that you don’t want anymore! A lot of the time, the same reason that you no longer want a property is the same reason another investor wouldn’t want it, but not always.
So let’s say that you have a beast of a property that you want to dump. A real dog with fleas, but you don’t necessarily want to just discount the heck out of it. What would you, the creative real estate investor, do to get rid of the property?
A method that I learned from my mentor is the “Must Take” technique.
The “Must Take” works by bundling a hard to move property with a much more desirable property and selling them as a package. The buyer gets the more desirable property, but “Must Take” the less desirable property as well.
Not too long ago, we sold a three property package on the “Must Take” plan. Two of the properties were in a low-income area on the threshold of a war zone. The third was in a fast-moving subdivision and actually had two houses on the lot. The investor wanted the “nice” property bad enough that he was willing to take the other two.
We managed to creatively structure a deal where we sold him the nice property on the condition that he “Must Take” all three properties. We took back some financing to sweeten the deal for him (the financing we took back was all profit from the deal anyway) and received a good return on our money. We successfully sold two properties that we didn’t want anymore, and created a win-win situation with the investor.
This example shows you what creative real estate investing is all about. There are several ways to move unwanted properties if you just learn to think outside the box. Using creative deal structuring can add hundreds of thousands of dollars of profit to your bank account because it allows you to do deals you wouldn’t other wise be able to.
Using the “Must Take” is just one tool in our creative real estate investing toolbox. Come back and check out MustKnowInvesting again soon to learn more.