Many investors don’t get started in the business because they think it takes a tremendous amount of money to get started. Here’s a secret; IT DOESN’T! Sure, if you want to go the traditional route of putting 20% down with a bank every time you buy a rental property, it will take you a very long time to build up true wealth. I’m speaking from experience and believe me when I say, there’s a better way. Keep reading.
We finance the properties we buy to investors and people looking to get into a primary residence and you can take advantage of that same principle with very low to little money out of your own pocket and you can do it from anywhere. Check out this example on a property we currently have in inventory:
14421 Minock St Detroit, MI
Sale Price: $15,000
Down Payment: $2,500
Monthly Payment: $265 a month for 10 years
Now, here’s what you can do as an investor, you can turn around and do what’s called a “wrap around” note on this deal with another buyer that would like to make that property a home for themselves. Take a look at how you can do this with no money out of pocket:
Sale Price: $25,000
Down Payment: $3,000
Monthly Payment: $405 a month for 6 years
You get all of your money back + $500 and now have a monthly cash flow of $140 a month. This is what’s called an infinite return on your investment. It cannot be calculated. In 6 years, you’ve paid off the note and made $10,080 in cash flow. Now, that might not seem like much, but imagine you could find a way to do this 10x a month. In just a year’s time, you will have a great cash flow going for you.
The infinite return is the best part, but here’s another great perk: you don’t have to fix toilets, take calls from tenants or make repairs to the homes. They pay your insurance and tax cost as well. This is just about as passive as you can get in the real estate business. Need another perk? Ok, do it through a Self-Directed Roth IRA and you get to keep all the money tax free for your retirement. BOOM!
Want to learn more? Hit us up here on the website and we’ll help you set up a deal and show you how to do it. We aren’t gurus and we don’t charge you for it. We just want to sell our properties and help investors grow their cash flow. Let’s create some wealth together!