I’ll be honest with you. I could care less about real estate.
Real Estate is Boring
Even the terms are boring. Mortgage. Amortization schedule. 20-year note. Clear Title. Even typing them onto this laptop puts me to sleep.
Introducing the Real Estate Hypnotist. He’ll put you to sleep by explaining how a 20-year mortgage schedule, and how your ROI (Return On Investment) can be ameliorated by en economic downturn.
Recurring Streams of Income
I don’t care about real estate. But I do care about time freedom, and putting systems into place in order to work smarter. I am interested in setting up recurring-streams-of-income (revenue streams of money that arrive every month).
And, if you’re still reading, you’re probably interested in setting up recurring streams of income as well.
Here is one way that you can make money in real estate using no money of your own.
Make Money in Real Estate Using no Money of Your Own
Financing is how you can make money in real estate using no money of your own. How does this work? Before we go any further, let’s define financing.
Financing: the act of obtaining money or capital for a purchase or enterprise
The way that you can make money is that you finance the purchase. Essentially, you are playing the role of the bank (lender). You are financing the deal. You are accepting payments toward the purchase completion of something, in this case, land.
You can sell anything through financing. You can sell cars, boats, houses, mobile homes, land. Here, though, I’m going to talk specifically about financing land.
The Beauty of Financing Land
Financing land is a lot cleaner and simpler than financing houses or mobile homes. Why? Because houses and mobile homes come with the possibility of tenant issues, wear-and-tear, the legal attachments, rules and regulations, liens, code violations.
Here’s how you can make money financing land, using no money of your own.
1. Find cheap land for sale. Usually, these land parcels are in rural areas of states like Texas, New Mexico, California, Utah, Nevada.
2. Make a low priced offer for that land for sale.
3. Buy the land.
4. Sell it on Ebay.com, CraigsList.com, and other websites. Sell it with $500 dollars downpayment and monthly payments of $100 a month. Collect checks every month.
Wait a second: I thought you said I could do this using no money of my own.
You use someone else’s money to buy the land.
Your only expense is the Ebay.com listing and the time for you to assemble an ad, and post the ad on CraigsList.com and other websites as well. With the CraigsList.com ads, be sure to attach the website address of your Ebay.com ad, in order to get more interest and a higher winning bid.
Why would someone let me borrow money to do this?
Because you offer that person a total return on their investment + a 50% split on the profits above the investment.
How This Works
Say they let you borrow $1,500 dollars and you buy a 10-acre parcel in West Texas. You sell that 10-acre parcel for $4,500 with $500 down and payments of $100 a month at 8.5% interest over a certain number of years, until the payment is paid off in full. You handle the Ebay ad, and all paperwork when the payment is paid off. You offer no pre-payment penalties, so the buyer can pay it off early if he wants.
Everything over or above the $1,500 dollar return, you and the lender split. If all goes well, the lender will be paid his $1,500 dollar investment back at the end of ten months. Every month after that, a one-hundred dollar payment (profit) comes in. The first month it goes to the lender; the second month it goes to you. For every other month after that, you make a $100 dollar profit.
In short, you are financing the property by “carrying the loan” and “acting as the bank”. The Return On Investment (ROI) plus the creative control of the revenue generating asset (land) makes this a win-win-win for all parties involved.
Win Win Win
The buyer wins because he gets a property without having to jump through hoops providing a high credit score, high income, an application fee, or showing his job status. The lender wins because he’s earning a 25% – 50% return on his investment (over the term of his loan). The borrower (person who is structuring the finance deal) wins because he’s getting checks every other month for structuring the deal, which amounts to only a few hours of work a day for the first week or so.
If you want a shortcut to real estate investing, one that you can use to buy houses, mobile homes, or land, in Florida or anywhere else in the country, the same shortcut I used to find and buy a Florida house for $2,000 dollars and sell it for $20,000 dollars, be sure to visit http://www.MakeBigProfitsFlippingFloridaLand.com and http://www.FlipFloridaLand.com
Share this article with your friends. You will probably inspire them to follow this formula and make a financing deal with you that will earn you checks every other month. You can do it. 🙂