Property Investing Secrets:
How You Can Turn A Below Average Deal Into Streams Of Income
When property investing, sometimes youll get a seller who will say: Sure, Im retiring, and I need some cash flow, I need some money but if I deposit it in the bank, Im not going to get much for it. The property market is falling, there arent a lot of buyers and they are all beating me up on the price of my house. But if you give me the price that I want, know that Im not going to be able to live forever. So youre going to have to pay off the balance to me in about 5 years. When youre property investing, you will come across sellers like this. In the past, you may not have known what to do with them. Consider this now; you may be walking past streams of income.
Now, while youre property investing, youve paid $300,00 to the seller and you can turn around and make the property available to a buyer who cant get a bank loan tomorrow, like an investor. A lot of investors who are buying houses get stopped after purchasing 3, 4 or 5 houses because they cant get any more bank loans. Many investors still want to buy property but theyre stopped by the banks. So theyd love it if you turned around and said, Mr. Investor, the house that Ive just purchased for $300,000 you can have for $300,000. You dont even have to increase the price of the property because youre looking for streams of income and back end profit.
You make the house available to the next man when property investing for the exact same price that you paid for it and say to the investor: You make payments to me at the same rate as what the bank is charging. What happens is youve got a buyer who makes you payments at bank interest rates on a house that you didnt increase the price. You sell it to the investor and they pay you 7% interest at bank rates over 25 years. The investor is happy because they didnt have to go through the hassle of getting a bank loan. The investor pays you $2,200 a month electronically into your bank account and you pay the seller $2,000 a month out of your bank account. You make $200 a month as part of your streams of income strategy.
Also, you insert a special condition when property investing where in five years time your buyer will pay you out at approximately $280,000. Youll pay off the seller at the same time, except at $180,000. Youve just made $100,000 back end profit on a house plus $12,000 as part of your streams of income investment strategy.
Rick Otton is the director of We Buy Houses Pty Ltd. He has been property investing full time for 14 years. Rick has completed over 351 property transactions in Australia and the United States.
Rick specialises in creating positive cash flow through a variety of strategies he perfected in the United States and adapted to Australian conditions. He sells home study courses on vendor finance, one year mentoring program as well as a yearly 3 day boot camp on the Gold Coast. Go to http://www.rickotton.com for more property investing information ring 1800 003 588 in Australia.