Owner Financing How To Be Your Own Bank and Make BanK

Owner Financing How To Be Your Own Bank and Make Bank

What is up my soldiers now guys do you hate your boss seriously i’m asking you this question do you hate your boss i know you hate your boss i hate your boss and they’re not even my boss but because they’re a boss i hate them too i chose to be my own boss i’ll show you how to do that in today’s video guys we’re talking about owner financing and how to change

Your life and fire that boss and become your own personal bank and create massive cash flow and change your life now even if you like your boss they still gots to go because you need your own financial freedom now what i’m gonna be doing on the board behind you guys is we’re gonna be breaking down a very powerful math example step by step the same house with

Three different financing options different interest rates different amounts that you’re gonna sell the property for but you’re gonna see massive profits being created with just a manipulation of interest rates and it’s gonna blow your mind guys i swear this is gonna be an interesting video for you guys if you don’t understand owner financing you’re gonna want

To know more about it after this video now before we begin if you hate your boss there’s a little button down there it looks like a thumbs up right imagine that’s your boss and our one shoot up that finger right that little thumb knock it out okay cool let’s move on this first property we’re going to pretend that we bought this property from the bank on a big

Finance loan we’re going to be buying the property for $100,000 the financed amount don’t think about closing costs and don’t think that down payments guys let’s just look at the finance part being $100,000 we’re gonna get it at a 30-year loan or in a quarter percent and i’m gonna go over the p&i payment that’s your principal and interest payment that’s your

Payment that you owe the bank then we’re gonna look at the total loan once we do this i’m going to show you how powerful it is to sell that same house for $100,000 or to finance $100,000 for your back end buyer throwing out down payments and and closing costs guys can make it too confusing here but you’re gonna have a hundred financed a hundred financed to your

Back end buyer you’re going to owner finance be your own bake sell the property to an owner-occupant to live in and a hundred thousand dollars thirty year loan but the only change everything is constant every variables constant but we’re going to now do it at three our ninety three quarters percent hmm now there’s a lot of great borrowers out there guys really

Great families really good people sometimes life hits it is hard they could have had a divorce they could have come down with a major health issue they could have had some random thing happen in current business day great credit for years one bad life incident boom they hit the bottom there’s still great borrower they have the cash they have a track record to

Make the payments but the bank looks at people as a statistic they look at you through a computer screen as an owner finance investor who’s seller financing their house you can look at that person buying the house from you as a human being and actually see if this is someone that you want to buy the house from and you can help a family out become a homeowner so

Let’s look at these two real quick when you borrow for the bank hundred thousand thirty-year 44% you’re gonna turn around sell it for the same price a hundred thousand nine four percent 30-year low let’s look at what this does for you i think it’s gonna shock you guys bear with me here okay so when you buy this house you’re going to have can’t even get my pen

Open p&i payment of four hundred and ninety one dollars and seventy four cents that’s gonna be your payment to owe to the bank that you’re gonna owe the bank now there’s $100,000 over 30 years is gonna equate out to a total payment stream of a hundred seventy thousand one hundred seventy seven thousand and ninety eight dollars so after 30 years you’re gonna

Pay about seventy seven thousand dollars plus a little bit more on top in interest to the bank not a bad deal if you become a homeowner and now have a free clear house now look at what happens when you turn around and wrap mortgage and owner financed this to an owner-occupant buyer of your choice you’re gonna sell it one hundred thousand dollars same price that

You got it thirty years same turn different interest rate and this is why you need to understand yields percentages amortization calculators because this is what’s gonna make you wealthy your p&i payment guys is going to jump all the way up to eight hundred and fifty nine dollars in eighteen cents okay now guess what look at what’s gonna happen to the total

Loan amount it’s gonna go from a hundred and seventy seven thousand dollars all the way up to three and $9,000 296 on top of that now a lot of you are going to say well why would someone pay nine 3-course percent because they’re renting and they want to become a homeowner and they want to build equity and property and the banks won’t work with them also they have

In their mind that they’re going to buy the house at a high interest rate work with the credit repair company do the right practices over the next year or two and go back and do a cache cache or a refinancing with property into a lower interest rate like this one or they can do something else with property like sell it if they can’t make the payments hopefully

You don’t have to take back but if you do that is why we’re going to do the last example right here while you need a little equity position in but let’s not jump too far ahead look at the difference between what you’re going to make here guys so if you sold it in nine three quarters and uo 4 and a quarter you’re bringing in eight fifty nine point eighteen but

You only owe for ninety one point seven four so that’s going to equate to three hundred sixty seven dollars and forty-one cents positive monthly cash flow that’s what’s going in your pocket with ten of those make your day i think it what would make your boss a little bit scared too once they see those properties start stacking up they know they’re gonna have to

Replace an employee soon now what about the difference between total loan amount this is your profit over 30 years 309 – 177 you have a hundred and thirty two thousand one hundred and ninety-eight dollars that right there is a six-figure profit on one property that you sold the same price that you got it now that is risky because if you have to take property

Back you have to make this payment there’s no equity in the house let’s say the house starts dropping in value cuz the market turns you don’t want to do this guys i’m just impressed upon impressing upon you how powerful this is but also you may be caught in a property that you can’t do anything with and this may be your only option is to owner finance your way

Out of it which a lot of people do now what you should be doing is selling the property at a premium to what you have into it let’s jack it up twenty five thousand dollars so let’s say you owe the bank a hundred thousand but you’re gonna turn around sell the property the one hundred twenty-five thousand thirty years nine 3-course percent loan now even if we

Just did four to corporates it alone with 125 nasus spread between a lot of money be made the cash flow long-term payment stream but we’re gonna do it at higher interest rate because that’s pretty typical for what a lot of people are getting in most markets for an owner finance income stream look at what its gonna turn your pi payment into guys this is shocking

Here real quick so look what this is gonna do you are now going to be bringing in 1073 dollars and 94 cents that’s your p&i payment that is what your owner-occupant buyer the individual you sold the house to is going to be paying you every single month but you only owe four hundred ninety one thousand four hundred ninety one dollars and 74 cents i hope not

Thousand so look at the spread on this this is gonna create you the investor five hundred and eighty two dollars and 20 cents a positive monthly cash flow now all you landlords out there how many of you guys are making more than $500 a month net net true net net don’t lie to yourself don’t lie to us don’t lie to the world true net net $500 cash flow per property

I bet most of you are not saying yes right now most you guys are making between 150 and 350 dollars net net some markets are better cash flow markets but on top of this guys what you’re going to do when you owner finance your rental properties is you’re reducing your time and stress in the deal long time as well as foregoing a lot of future liabilities as far as

Repairs ago that you’d be on the hook for when you’re laying lord yes you build equity in the property you have tax write-offs but you also have to read keep up on the maintenance hvac goes out it’s your fault when you own or finance it’s the owner of the properties fault when you’re renting a property you’re the owner of property foundation plumbing goes out

Electrical goes out major issues who do you want to be the one on the hook for these liabilities if you’re the owner whether you’re buying it on our finance or you own the property and you bought it from a bank you’re the one that’s on the hook for the long term repairs so just pointing out more cash flow less time because you’re not doing with tenants toys and

Termites and it’s a lot better process and you see why people step up the evolutional ladder from renters or landlords who rent their properties to owner finance investors who owner is a property become the bank now this is the one that’s gonna blow your mind look at how much money you’re going to make over 30 years off one property with just a small little 25%

Look $25,000 increased in position on what you sold it for this is going to quit out to over 30 years three hundred and eighty six thousand six hundred and nineteen dollars that’s a lot of money think about that 386 177 386 177 this is a hundred thousand dollar property sold at four and a quarter percent finance loan just adding twenty five thousand dollars on

Top and juicing up the interest rate a little bit it is over doubled the return on that property over 30 years think about that now the actual spread between 386 and 177 is going to be two hundred and nine thousand dollars plus 521 to make it just a little bit sweeter the banks are big buildings in every major city because they understand financing guys i know

It’s not sexy it’s not attractive to learn interest rates and heels and amortization calculators but what is sexy is when you’re driving a lamborghini down rodeo drive because you learn how to do this or you can sell the house you’re in and get a bigger house or you can take your kids and remove them from a bad situation and put them a good situation guys i hate

Your freaking boss i know you hate your boss if you want to get rid of your boss and you thought this is going to help you subscribe the channel guys i’d appreciate it hit the like button it’s gonna help the channel grow and if you haven’t done so guys when you hit the subscribe button hit the notification bell as well when i post these future videos out on how

To fire your boss you’ll not be notified immediately and you can get on that track to change in your life quicker i’ll see you when i see you guys have a good night

Transcribed from video
Owner Financing How To Be Your Own Bank and Make BanK By Investor Army