Everyone knows there are different ways to invest in real estate. Flipping, Leasing, Real Estate Funds and other types of real estate syndicates. I want to offer something totally different and it was an idea from one of my very wealthy clients.
In Ohio you can still get properties that have a great equity position and a large population of quality tenants. If your in California, Arizona, Oregon, or any other expensive market you probably cannot do what all types of real estate, simply because there is no equity and the real estate is expensive in those areas.
The Cleveland Ohio market is unique because of the affordability that allows investors to buy quality real estate. The key is location,location,location.
Purchasing real estate and rehabbing it at 50%-65% of it's value is a dream to most investors. Imagine carry a note at 10%-12% return on the payment and the buyer/tenant putting 10% down payment on the value of the home. That would leave you with a great down payment and a secured buyer/tenant paying the monthly rent/mortgage.
The Buyer/Tenant would still owe for the remaining equity on your note. The buyer/tenant would also be required to pay for all maintenance of the property, because after all they will be purchasing in in the future. You would still have a 20%-30% equity position in the property that you could redeem in the future (The remaining balance on the note).
We have professionals to service to handle all payments of the note and help sell the note after a 12 month period.
I have done this and it works great in this real estate market. There are buyers that need homes and the banks will not lend to them. They have great jobs and they have money in the bank. I have had offers up to $70,000 down on real estate that people want and cannot get financing. With the 10% down payment they are vested in the home. That down payment is non-refundable and it helps qualify great tenants.
I have personally located real estate and areas this would work in. The prices of homes I am looking at are around $100,000. They are located in cities and areas that attract well paying professionals and their families. They also have great schools and amenities that families want.
Call Brett 216-703-5740 Century 21 Premiere to get information on this new way to invest in real estate. It really makes passive income just that passive. I also have a joint venture program that keeps me vested in each deal. I can manage everything form the purchase to the buyer/tenant, and get the note services through a licensed and bonded company that specializes in just that.