I have a part time business in real estate iinvestment. I started back in October and I currently own 6 properties; one of which is a triplex. It has truly been a learning experience. When I first got started, I was told that the way to start is to do a lease purchase. I rent the home to a tenant for 1 year. They pay a down-payment, anywhere between 3%-5% of the price of the home. They also pay first months rent. At the end of the year, all of the down-payment as well as 10% of the rent goes towards helping them to get the home. The rent I collect from the home is between 5%-7% yield. So, am making about $200 or more on each home, most more. Anyway, at the end of the year, if the tenant doesn't buy the home, they do not get their down-payment back. So, it is to their advantage to get the home or lose the money. If they do not get the home, I then can redo a contract with that tenant again, yes, down-payment and all or I find another tenant to do a rent to own. So, it really is a win-win business. The tenant gets a home and I collect the money. My win usually comes in the beginning and in the end of deal. The only problem is to be sure to get good tenants. I do a credit check on all of my tenants, but even this is no guarantee.

This is my current approach to real estate investing. Alabama has not been hit as hard by the subprime issues as other areas. I hope to move to commercial properties too. Maybe starting next year.

Thanks for letting me share...

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