Grow your income property investment portfolio without the need to deal with mortgages and lenders. In fact, you can even build a nice stable of cash flow income properties without using your own money or credit. I know this sounds far-fetched but it absolutely can be accomplished.
Before I share with you how to do the above, let’s discuss why investing in an income property is the way to go. Let me rephrase that a bit. Let’s take a moment to talk about why you need to make investing in cash flowing rental units the foundation of your real estate investing strategy.
Think about this scenario for a moment. You are saddled with debt, stuck in a 9 to 5 job and short on extra cash after paying all your monthly bills. Would you rather work longer hours to try to get your head above water, or would you rather have other people giving you money to pay off those bills and free you from your cubicle-enslaved life?
When you own cash flow properties, other people are paying off your debts. They are providing the passive income you need to walk away from your job. They are giving you the money to take care of your assets. Best of all, their money is providing you with freedom. Freedom from your job and the financial freedom to live your life the way you want to live it today, tomorrow and in the future.
Sounds great doesn’t it? Well, here’s what can make it sound (and work) even better. If you combine the strategy of investing in cash flow income properties with subject-to real estate investing, you can turbocharge your trip to the land of financial independence. Not sure what subject-to is all about? [Click Here for the Details]
Simply put, subject-to is a real estate investing strategy where an investor receives the deed and ownership while the seller keeps mortgage and the debt. In other words, you control the property and can do anything an owner can do (rent it, lease it, live in it, sell it) without having to secure a loan, use your credit and, in some cases, your own money. In most cases, you are providing a valuable service by helping the homeowner avoid foreclosure and making payments on the homeowner’s mortgage.
To turn this deal into a cash flowing income property, you must secure the property subject-to the existing mortgage at a discounted purchase price. You should set the option terms to purchase the property at a time in the future that works with your exit plan. Maybe you are going to rent the units for many years to come and leverage the equity to obtain more income properties. Maybe you will put tenants in place with an option to buy.
However you structure the option, make sure to get the income property at the right price so that you achieve positive cash flow with your tenant payments. Remember, the goal is to create passive income. Then, you will use the automatic monthly income to free you from your day job and give you financial freedom.