Everyone knows that those fixer-uppers can typically be gotten at below market prices. That’s the good news. The bad news is that even acquiring a fixer-upper property demands cash, which many newbie investors just do not have available.

A solution is to use a lease option to get into a fixer, make make monthly payments in cash while you’re undertaking repairs on the home, and then sell the real property to a new purchaser at a profit before the lease option period expires. It’s usually worth it to attempt to tie up the real property for a minimum of 6 months or 9 months, to give yourself or your subcontractors plenty of time to complete the repairs and then for a purchaser to purchase and close on the home before your lease option is up.

If the property is so beat-up as to be unlivable, consider offering the property owner a reduced rent, but take a firm stand that all of the rent be employed to the purchase price at closing. This is a good way to get a considerable equity position in the property without putting a great deal of money down in the first place. That likewise lets you to take your investment money and use it for doingg repairs.

An offshoot of this scheme would be to find someone who is handy with tools to rent the home with the intention of purchasing at the end of the option time period. Every contract is going to be different from each other, but you can offer 100 percent of their rent to go towards their deposit, particularly if you’re acquiring that agreement on the basic lease.

Selling this idea to the property seller is oftentimes much less complicated than you may expect. After all, you are going to be doing some repairs on the home substantially, with the goal of recouping your investment and making a healthy profit. If you fail to accomplish that, what is the worst thing that can take place, from the property seller’s position? They obtain the property back, with at least some, and possibly a sizable amount of the needed fixes and upgrades done, thereby maximizing the value and appeal of the property!

So if you have big ideas about being a real estate investor, but see yourself short on money to get rolling, one brilliant way might be to think about finding a fixer-upper and then offering the home seller a lease option arrangement. It could turn out to be a win-win for everyone involved. The sellers get their money, the buyer acquires a nicely revamped house, and you get to pocket a sizable profit, without having to put a substantial amount of cash!