Real estate exit strategy 5: Owner Financing

🏅Real estate exit strategy five is owner financing. This strategy if structured correctly will cash flow you for life. We call it mail box money. One major benefit to a seller is they don’t have to pay capital gain taxes when they sell the property.

What’s up family all right another extra strategy owner financing so what is owner finance basically if you got a property that’s free and clear you can make monthly payments on that property and just pay it off sometime in the near future so if you take over property say if it’s a hundred thousand dollar house right you agree with the owner to give them six

Hundred dollars a month and we like to make principal payments only now sometimes the seller want interest so of course we want as lowest interest rate we can get but the majority of time we’re doing principal payments only so you can only finance that for about five to ten years of course we’re shooting for the 10 years but then at the end of the 10 years you

Have a balloon payment for the balance but if you got 10 years guys there’s no prepayment penalty you could put somebody in for two years or five years on a lease option and you know hopefully get them qualified if they got 10 years they got 10 years to get qualified to buy it if not then you know they can buy within two or three years so that’s the part of the

Owner financing deal and then guess what if they don’t buy you can put them out and put somebody else in there you still got 10 years to pay the seller off as long as you’re making the monthly payments you got that balloon payment at the end of 10 years with no prepayment penalty and you can cash out at any time so that’s the benefit of owning financing of course

You want to get in with a low payment so you could put somebody in for a higher payment and get that cash flow every single month and of course on the back end you raise the price so you can get paid a big back in that’s part of owner financing guys the house that’s free and clear with no mortgage you can save the um homeowner also they can avoid capital gain

Taxes which mean they don’t have to pay a big fine once they sell the property they get that residual income every single month and a lot of sellers love that guys so they become the bank it’s a win-win for everybody all right keep going and going guys become a transaction engineer and learn every single aspect of real estate god bless you guys keep going and

Going peace yeah some good camera action hey what’s up y’all it’s your boy dave it’s coming at you man just letting you know about that subject to class i took it about maybe february march sometime and um got a contract under three weeks got another contract um or the property actually off the golf course i’m actually in it now take a look at it nice high

Ceilings renovating it right now so i was able to get all of this uh from the knowledge from that uh subject to course from your boy eddie ray t e academy uh definitely definitely um would give shout outs and uh props to that class and for anybody to go there if you really serious about your your real estate career if you want to take it higher to the next level

And if you want to become a transaction engineer they will definitely stick by your side they’ll be by you throughout the whole thing and they’ll also put in time and effort make sure you do everything correct no slip ups not like some of those classes that you take and all of a sudden you know you pay for the class and then they go they don’t hear from you you

Don’t hear from them no more so um i would definitely uh put in that time and work and that effort to get in that subject to class uh i definitely definitely um give that class the approval the stamp and i know i’ll be uh getting on their nerves because uh to this day i still um contact them you know for my uh my real estate needs and they still help me for

Anything i need so definitely get into that class big shout out to the te family again i’m in the property right now you know based off the knowledge from that subject to class so yeah keep going keep going

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Real estate exit strategy 5: Owner Financing By Home of T.E. Academy and future of RE Investing