By Editors CRECafe.com
PART 2:
This is Part two of the Article series Why Does Richard Roop Consider the “Free and Clear Money Machine” to be the “Ultimate Strategy”?
In this multi-Part Articles we will go into detail on how this powerful, yet simple and easy to do Investment Strategy works in the Real World.
For more information and free articles and videos on this subject click here
http://www.free-and-clear-cash-machine.com/
2) Use Owner Financing with Super Low or No (0%) Interest
If doesn’t matter what price a seller with a free and clear house wants. I can always pay it. The only question is WHEN. The longer they can wait, the more I can pay. The benefits of creating an owner carry back note at 0% interest include:
* You can offer a higher purchase price and get more of your offers accepted by having the seller wait for part or all of their equity.
* You can create a lump sum balloon payment due in several years and collect all the cash flow from the property during that term.
* You can give all the net positive cash flow to the seller to rapidly pay off the principle balance due and build huge equity positions without ever relying on appreciation.
* If the seller ever wants to be paid off early you can discount their note at a guaranteed 35%+ annual return, or move their mortgage to another property.
The beauty of this investing approach is that you structure 0% seller financing with the homeowner. And there so many different reasons why sellers are accepting offers with no interest on their equity.
Many investors don’t think sellers will accept 0% financing, or wait 5 to 15 years for their money… but they do… and they do it all the time. But only when you ask.
http://www.free-and-clear-cash-machine.com/
The benefits for you are awesome.
- You can collect all the positive cash flow on the property when the seller accepts no payments. If you could net $1,000 a month for 84 months, would that be worth getting involved?
- You can make any property cash flow by only offering the seller payments based on what the houses can afford. Any monthly payments you do make are principal only and will rapidly pay off the house… creating a huge backend. If you could buy a house with no money down, get at least a breakeven cash flow, and then collect $50,000 or $100,000 within 3 to 10 years, would that be a deal?
- And if you like, you can pull most of your profit out in advance… in cash… on the day you buy it. There’s no rush to quick-turn these properties when you have no money tied up in the deal and you’ve collected an extra $10,000 or $30,000 in cash on the day you bought it.
It may seem complicated, but it is not. The marketing is easy. Prescreening these leads is simple (Hint: if there’s a lot of equity… go see the seller!). Negotiating and deal structuring is systematic. The deals you buy using this investing model are super easy to quickly resale or occupy.
For more information and free articles and videos on Richard Roop and his Free and Clear Cash Machine please click here http://www.free-and-clear-cash-machine.com/
July 16th, 2009 at 4:54 pm
this is really works!