So, I’ve got a great idea for you today!
You’ve probably heard me talk about this on my podcast or write about it in these emails: browsing the MLS.
Check this out…
Recently, I was on the MLS looking for all the properties that were listed as lease options, FSBO or rent-to-own. (You can filter for those search options, BTW.)
I came up with over 150(!) in those categories. And, about 75% of those were in good neighborhoods.
When I say “good” neighborhoods, I mean they are in cash-flowing neighborhoods—the areas that typically only landlords buy houses in.
And even better, most of these properties looked like they didn’t need much work if any.
What does all this mean?
It means you target these properties. See, if the properties are being offering for lease or rent, that tells me the seller is flexible.
Flexible seller = motivated seller.
So, just call up the listing agent, tell them you’re an investor and make an offer.
My usual rule is that if it’s a house below median home price, I make a seller-financing offer. Then, I sell it on a wrap with seller financing to a buyer who’ll live in it. If it’s above median home price, I do a sandwich lease option.
Let me use an example…
You see a property listed for sale at $50,000 or for rent for $800/month… call up the agent or seller and ask if they’d consider a seller-financing offer from an investor. Offer them the $50k to buy it with seller financing AND offer them the $800/mo. principal-only payments, zero interest—until its paid.
Get this… it’ll be paid off in just over 5 years because every dollar is going to pay down that principal. And then you’d own it free and clear. 🙂
Maybe you’re thinking, ‘I don’t want to own a rental property.’
Good news—you’re not. Because you can turn around and sell it on a wrap to a buyer for $55K-$60k with 9% interest.
So, every month, you’re paying down the principal AND earning interest.
You might be thinking about your monthly cash flow… well, remember this: the buyer is paying for the insurance and taxes, not you.
You get even more creative with your offer and tell them you’ll pay for the taxes and insurance and give them a monthly payment of $600.
Still concerned about cash flow?
I get it… but you also need to remember that when you sell it to a buyer, you’ll get a $5k-$10k down payment from the buyer and a lot of times, the buyer will pay it off early.
See, a little MLS searching and some creativity can go a long, profitable way!
So hop on the MLS, filter and search for these types of properties and make offers. That’s it. Get to it.