“The Cycle” to Successful Real Estate Investing
If you want to learn how to get free money, you have to learn how to develop your skills. You do that in the same way that you learn to swim…Practice. Doing it over and over again. If you want to learn to swim you can’t do it by reading a book. You have to get in the water and swim.
When it comes to deals and how to get free money…get in the water and do it. Don’t be afraid that you’re going to mess up. There are millions of deals out there. So what if you mess up a few? That’s how you learn…get in there and start paddling, before you know it you’ve learned to swim.
How to Get Free Money with Owner Financing
Owner financing is the best way of finding “free” money, mainly because you can close it instantly. It’s also great because…
Of all the other ways of finding money, none has all those benefits. The others have some benefits, but owner financing is the best because it has all these benefits. You can do the deal very quickly.
How to Get Free Money with “Subject To”
If the seller has a mortgage in place, you buy the property “subject to” the existing mortgage. The benefits of subject to:
However, because there is a bank involved and there can be stress, because “subject to” creates some things that you have to have like the insurance, the escrow, the taxes and you need to proceed very carefully.
How to Get Free Money Using Notes
Combine “subject to” with a promissory note,then that will help take care of the seller. Instead of giving them cash, you give them a promissory note promising to pay them so much over a certain period of t
ime. A promissory note is like creating money out of air. It’s an I.O.U.
You need to learn to create promissory notes, and it’s very simple. You go to the title company and ask them to create a note. It’s just as easy as that. Of course, you will need some basic information to do the note:
Length of payback
Amount of the payment
Hint: The payment on a note does not have to be an amortized payment. The payment on the note can be based on the cash flow. That basically means that you pay an amount that allows you to get some cash flow from renting the property, until you can sell or refinance it.
Combinations of these really work well:
Note: “subject to” and a partner is the way to handle a deal that allows you to acquire the house with a note and “subject to”, but that leaves you with a house that requires renovation in order to sell it. Rather than trying to come up with the money yourself to fix the house, you find someone to fix the house and then partner with him.
“The Cycle” reveals the way to approach and close such a partnership deal. This is a skill that will save you a great deal of money over other types of partnership agreements.