Kansas City Investors Utilizing Creative Financing
Hey gang, what's the deal with investors' reluctance on creative financing techniques? Specifically on the buy & hold/disposition side of things for single-family properties?
A lot of investors are aware of and utilize certain creative financing techniques on the buy-side, such as purchasing properties subject to the existing financing or through direct seller financing but what about on the back end?
There are so many investors here in the KC market that repeatedly struggle with the contracting and property management aspects of the business... Why not do something different? Especially if you own a single-family home and want to keep it as a long-term investment.
It makes perfect sense to have a need for a property manager on a multifamily building but if you have a house, and you're tired of being a landlord, why not try a different strategy? Go for a lease option or a contract for deed or a true seller finance deal? You can get a large, non-refundable down payment on the front end and you get to cash flow each month... All the while you have it structured so that you don't need a property manager and responsibility for the maintenance & upkeep of the home is placed on your tenant-buyer... Why are more investors not using this option???
Wholesale Deals can be absolutely gravy, Fix & Flipping properties is tried and true and, of course, it seems way cooler on TV than it is in reality, and Multi Family dwellings is the new wave... Everything has its place, it's all relative, and it can all make good money for people but are we all just gluttons for punishment or what? Why be a rental landlord on a SFH if you don't have to?? Are there more tax benefits from being a rental landlord? Am I missing the boat here? Someone please enlighten me. ;)