The economic situation isn’t good enough for certain people. Why? They’re in a position to make money from the soaring prices right now. Discounts on value aren’t as good as they were in the 1980s. Some say it’s even higher than this.
Consider it. The interest rate is low. Motivated sellers. There are fewer buyers. Lower prices. Government rebates. Tax incentives. There is no better environment to make an enormous amount of money fast. It’s a negative market that isn’t going to last for long. The negative news can drive prices down, and profit up. I’m profiting from this, and you should too!
Why do people shy away from real estate when it’s so good?
Just out of fear. They aren’t sure what’s happening. They watch the news and they are all negative. They don’t think beyond the headlines to find the potential. Did you know that wealth is made by people who are not in the mainstream? These brave individuals are the people who study the basic economic principles and find sectors of business that are suffering greater than average losses, and buy massively.
Think Warren Buffet. He’s made millions through this exact strategy. They know that once the economy is back, they will be successful as that sector will grow faster and faster than the overall economy.
So, what’s my role in this economic climate?
I’ve got over 33 years of experience in real estate. I’ve purchased, sold, and owned apartments, commercial or single-family properties as well as land. There are two things I’ve learned from this:
1.) I believe that holding is the most important aspect of the long-term success of prosperity.
2.) The residential real estate market is an excellent investment because it’s the least risky among all the real estate. In the end, everyone needs the protection of a shell. Err…house it is.
Now that you know what you must buy to make it in this economic climate (and every other one for that matter). You must be aware of which stores to buy and what to buy, the amount you need to pay, and where to find the money needed to purchase it.
These are the most important questions to be asked in any type of business.
It is possible that you have the answers. What’s not being offered to investors is a duplicatable strategy that addresses all the concerns and guides you all the way through and then delivers the results.
Let’s first discuss what you need you should buy. I think that most people could start a business from their backyard. This means that there are at most two areas within a five-mile radius of your home with decent median-priced houses. The median price of your market. It’s crucial because it can generate cash flow.
The second, what to buy question is part of what I refer to as our Street Smart business plan.
Pretty homes in lovely communities attract people with beautiful checkbooks who would like to own. In the end, my plan of exit is to offer homes to my clients who reside in the area. We’ll discuss this later.
Thirdly, what amount you will have to pay?
This is where your skills can help. You can certainly battle it out with the lenders and buy on the steps of the courthouse, but it is not the best starting point and demands the cash. Instead, I seek alternatives to locate opportunities the opportunity to buy at a bargain and control the entire process. I’m able to assess the condition of the property, its location, and the time of closing, and maybe even finances. The tools and skills I’ve developed for this procedure will yield the amount of discount that I require to turn a profit.
Fourth is where you can get the cash.
Hello and welcome to my “The Seller IS the Bank” program. If you are trained properly, you’ll find that sellers are your ally in this process. If you know the right words to use, they will permit you to transfer the payment for their loan. In addition, they will allow you to carry the seller financing back to make up the difference. I would not be able to accomplish this if I was focused on buying foreclosures in the courthouse or short sale sales.
Of course, in order to ensure that this happens repeatedly, you’ll need a plan. It must contain specific training in specific areas, as well as the appropriate documents to secure your profit centers and protect them. This is an essential business plan that many investors do not consider. They just wing it and believe in the outcome and end up failing badly.
In order to get the property that you want to sell in this market there must be an approach for it too. This is the next step of my plan for making the most money in the least amount of effort. It will pay off for the next several years.
We have our homes available on the Rent to Own program. We offer our clients the opportunity to purchase for up to 3 years. buy and grant rent credit for timely payments and finance the purchase should they decide to complete it. There’s an enormous market of people who would love to own the opportunity to own a house. They are poor, bad, or even have no credit. They’ll pay in exchange for the right to improve their credit rating with you. There are some who call them tenants. They are the same tenants who be renting and are hoping to one day own their own home should they get the chance.
Imagine all the issues that this solution solves.
The tenant (we refer to them as clients) considers it to be their house and treats the property and you completely differently. In addition, they first pay you to earn rent credits toward the purchase.
Here’s an illustration of the real deal. I have Street Smart training clients who do deals similar to this regularly.
A lady was the inheritor of an estate. She resided there. Her brother was there and took his share of the property years before by obtaining the loan at half of its amount before transferring the money to him.
Then she was facing problems with cash flow as her job cut her working hours. The mortgage was not paying and even more so every time she turned around the home, it would cost her cash in the cost of insurance and taxes a brand new roof and water heater as well as a new privacy fence, etc. She was looking to move out and find an apartment that was free of problems with maintenance.
She was aware that the house was worth at most $160,000. She was willing to accept an offer at a reduced price to get free of the property quickly. Making use of my seller’s bank’s philosophy and the best words to assure her of her correct choice. Here’s the offer she took:
1.) $130,000 purchase cost financed in the following manner:
2.) 75,300 current loan taken in addition to payments in the amount of $454.24 each month (5.5 percent interest rate)
3) 45,000 monthly at $300 for the duration of the amount is paid (zero interest)
4) 8000 cash of which she paid the closing expenses.
To understand the reason for this deal, you need to examine it against a conventional loan. Since this is an investment property, usually the rates of interest are higher than for a residence that is used for primary. If you are able to obtain a loan say that the rate is 7.7%, 30 years fixed rate. Today the amount of $8000 would not be acceptable to the lender. They’d like to see a minimum of 20 percent down. This means that you’ll need to put up $26,000 in cash (at minimum) for investment properties.
In addition, you’d have to pay loan point and closing costs for loans in the range of 3.0 %… (or $3,660 in cash. In the conventional method of investing, the majority of investors buy they would have to put up $29,660 in cash and then make a monthly payment of $691.92 over the next 30 years, totaling $249,272.42.
Thanks to my “Seller IS the Bank” program, I can repay her loan at $330 per month PRINCIPAL and at zero interest. The loan is paid off in 150 installments, which is 12.5 years. Payments begin 3 months after we buy. The loan we purchased has a term of 26 years. That means that my costs of funds are $197,448.32 which is an amount of saving of $81,484.41. In addition, I don’t need credit as the seller is a bank and their property serves as an asset that is used as collateral to secure the loan. In addition, there is cash savings, and there are no closing fees. Whew! A lot of numbers, but you need to read the entire article again. Same deal, two different offers. Do you like this deal more?
And, by the way, it is likely that every typical investor would love to purchase a house worth $160,000 for just $130,000, even if they need to go to the bank to obtain the cash. The cost of financing savings is in addition to the equity that is made.
By using the right strategy and deal, I could have made more profit on this one deal as investors make from 6 to 8 deals.
Let’s take a look at the exit plan. I offered it for sale on the basis of my “Work For Equity” program which gives my buyers credits towards the downpayment if they finish painting and fixing. This meant that I didn’t have any further expenditure in cash.
They put down $15,000 and signed a contract for a $ 1,300-month rental payment. They agreed to a $169.900 purchase price. That’s a starting income of just $546 a month, which will increase due to inflation. It will increase further when my loan of $300 per month is paid off within 12.5 years. In the end, I’ve recouped the cash I spent and kept cash in my pocket too.
You can now identify the various profit areas when purchasing:
1.) Zero credit problems. I did not need to utilize my credit to be able to get the loan.
2) No bank financing
3.) There are no loan origination costs
4) No loan closing costs
5) No 30-year loan
6) No loan qualification delays
7) The cost of funds in the short-term funds
8) A low amount of down payment (many times it’s there is no down payment and, in some instances, the seller will pay the US in order to buy)
9) Chance to make more money should the seller choose to sell their note to finance the seller at a lower price
10.) Beautiful house beautiful neighborhood that beautiful people with pretty checkbooks would like.
Let’s review the profits areas for selling:
1.) Cash-down from the buyer (more than the security deposit)
2.) There are no refunds. You aren’t required to return your down deposit (option fee) instead of. being required to refund the security deposit
3.) No repair. The customer may be able to purchase property in “as is” condition saving the delay and expense of fixing up
4.) Cash Flow, as the rent is several hundred dollars more per month than the amount paid for the vendor or the buyer’s bank
5) No out-of-pocket expenses. The tenant’s rent payment to pay off and repay the financing
6) Less stress. You’ve got a very satisfied client whom you have given a great chance to
7) An increase in business. You are able to get referrals from potential customers, which allows you to create your buyers’ list
8) Fewer repair costs. There is a homeowner training, who is responsible for minor repairs and maintenance
9) A lesser burden on collection. If you have a client that has a financial or life improvement incentive to pay promptly
10) You get two options. If they buy…Yeah, you can! You’re selling at the price you want and they pay for the closing costs. If they do not buy…yeah you lose! You can get the asset back and you can start in a new way. Whatever way you go, you’ll be successful.
This is all in line with my business model… we assist individuals when we buy and we assist people by selling. We are problem solvers as well as dream grantors.
Here’s the thing. Instead of working involved in the real estate market, I will teach you how to become a finance industry. We employ easy-to-learn methods to obtain innovative financing from the seller when we buy and offer innovative financing to our buyers at the time of selling and earn huge profits in between.
I hope you’ve enjoyed this glimpse at ways to be successful in the current economic climate. This business model has proven to work for me throughout every down and up. This bubble is believed to be a time when you are able to make more money than normal due to low-interest rates, a concern for the marketplace, the high availability of houses, and willing sellers.
In the past 25 years, I’ve developed a method that includes all the tools including Training, Technology, and team coaching and mentorship to spread this process to other people. This method works and has seen many achieve millionaire status in a short time because they were smart enough to recognize that using the process of someone else who had already perfected it is more efficient than trying to develop their own. There are now followers and users of this method in all 50 states as well as 15 other countries. You can also build an everlasting business that’s highly profitable for your family and you. Go through this article and decide whether this is the right choice for you.