How to Make Money in Real Estate
Some people wait years to accumulate a rental portfolio of 11 houses, with our help ~ Scott did it in 1 deal! Through the help of our joint venture program Scott found a seller who had 11 houses for sale. Through perseverance and deal structuring help, Scott was able to come up with an offer that was a win-win for the seller and himself using my favorite investing business model - The Ultimate Strategy.
Using The Ultimate Strategy Scott earned himself $500,000 in profit from cash now, cash flow and cash later. So far, this is the 2nd highest profit we’ve had a partner achieve in one deal.
The Ultimate Strategy involves paying top dollar for a house using owner financing on free & clear houses. 34% of all homes in the U.S. are owned free & clear, so there is a great market for this strategy.
Some of the MAJOR benefits of this business model include:
* low to NO competition from other investors
* collect cash when you buy, monthly cash flow and cash when you sell
* make seller's offers ABOVE market value, therefore, creating win-win offers
If you would like to listen in as Scott talks all about the deal, how he found the seller, what happened, what challenges he overcome and what it feels like to put $52,000 in the bank when you buy a house go over to:
http://www.richardroop.com/making-money
and listen to a call that I did with Scott. It's very informative and free for you. No opt in necessary.
Comments (3)
Sounds pretty risky to offer sellers above market value on a group of 11 houses and generate a positive cash flow. I am also curious how you calculate the $500,000 figure? You say cash now, which I can only assume means you are counting prorated rental income and security deposits at closing. Cash flow, which sounds like it would be hard to achieve if you are essentially financing everything at 100% or even more. Also cash later, which is just a speculation and you can make up any dollar amount you want and put it there. To be fair I didnt listen to your call or spend anytime on your site because I get the feeling you would want to sell me something. But if you have a real system or can share some numbers here on BP I would be really interested in hearing about it.
Account Closed, almost 11 years ago
Brady, Thank you for your comments and I'm happy to explain. In this business model we use the favorable seller financing that we get (usually less than 3% interest) to be able to pay at or above market value for the properties. Think of it along the lines of when you buy a house through traditional means and you go to closing, the title company has you sign a truth in lending statement that shows that even though you're buying a $250,000 house at 6% interest rate at the end of the 30 years you're really going to be paying over $289,000 for the house. We just turn that same principle into a win for both us and the seller. We structure the offers in a way where we don't pay the seller more per month than the house can afford. In other words, as you stated, we don't want to make it impossible to cash flow. We know going in what the house, or houses, will rent or sell for and we base our offers on that. Nothing more. It's all about what the house can support. We do not count prorated rental income or security deposits into our cash now money that we get when we buy. In the case of security deposits that money is not yours to spend. We put that in a separate escrow account. The cash now is a private money first mortgage that we bring in to fund the down payment to seller, fix up and repair costs, holding costs and whatever money we want to make on the deal. My average student takes $10-$12,000 out at the time they purchase the property. I would highly encourage you to listen to the call. There is absolutely nothing for sale in the call and I certainly don't want to sell you anything that you aren't interested in. You can also see a full blown explanation of the model at: RichardRoop.com/MakeTopDollar - again, nothing for sale there. Just an article describing the business model and an opportunity to opt in to receive 14 FREE training video's that show you the details of how offers are structured, presented and how we make money.
RIchard Roop, almost 11 years ago
Brady, If you prefer to stay on BP and learn more, you can on my blog. I have a few articles and videos posted there showing the exact thing I describe above. Best, Richard
RIchard Roop, almost 11 years ago