Paper Transactions in Real Estate

You can invest in real estate without owning any real estate.  For example,

1. You can buy notes (secured by a deed of trust) at a discount, or
   
2. You can buy a Real Estate Contract, aka Land Contract, at a discount.
   
3. You can buy an Option to Purchase property and either exercise it or assign it for a profit.
   
4. You can assign for profit a Purchase & Sale Agreement.
   
5. You can assign a lease for a profit.
   
6. You can buy out a party being foreclosed on and deal with the secured party, and sell the property before it ever gets in your name.
   
7. You can buy out a troubled party and obtain a Quit Claim Deed, and then sell that paper.
   
8. You can wait until property has been foreclosed, and go to the secured party and buy the rights to own or re-sell the property.
   
9. And there are many more combinations.
   

Red Flag:  These transactions are not for the faint of heart.  These are advanced techniques, because there are so many traps for the unwary.   A thorough understanding is critical to avoiding disaster.   I’ve handled all of these, either as a real estate attorney or Realtor.