The worst thing an inexperienced or time strapped real estate investor can have is cash!
Every day, new investors come to us with similar problems. They are losing money on their rentals, they are being driven crazy by tenant, toilet and trash problems and they want out!
They saw “everyone” getting rich in real estate, so they decided they wanted in. They took a couple of courses, read a couple of books and they were ready, or so they thought, to buy rental properties for passive income.
Little did they know that fully 1/3 of small property (1-4 units) owners are driven out of the business each year by the same problems they were encountering!
So, instead of trying to decide which antique letter opener to use to open this month’s rent check, they find themselves trying to decide whether shooting or cyanide is the least painfull way to escape their property’s problems.
Baby sitting tenants whose only purpose in life was to make theirs miserable was no fun. Adding insult to injury, they were paying for the privilege month after month through negative cash flow! Sound familiar?
Many had already sold, most taking losses on their once prized “investments.”
It doesn’t have to be that way.
If they had taken the time to study real estate and acquire knowledge of triple net leases, trusts and equity shares, among other advanced techniques, they could have avoided most of their problems.
Like Robert Kiyosaki, the best selling author says, if you do not have the knowledge to make money in real estate with no money, you will only lose the money you have, investing without the knowledge.
Fortunately, there is an easier way for the new or passive real estate investor to acquire high yielding investments without spending years and/or thousands of dollars on courses to obtain the required knowledge.
The solution is Turnkey Investments that produce high yielding passive income. You can buy them with your signature alone or if you do not have good credit, with seller financing in most cases.
With a turnkey investment, a knowledgeable, experienced real estate professional pre-packages the investment and sells it, ready to go, to you.
The property is occupied, producing positive cash flow monthly and there is a profit built into the buying price, along with an upfront cash payment to you in many cases!
Most importantly, there are no management, repair or maintenance problems for you to contend with. The tenant is contractually required to handle those issues himself!
All you have to do is to (add water and stir!) purchase the property and supply an address where you want your checks mailed!
These pre-packaged investments make passive income a reality, even making out of state ownership feasible.
If you have a high enough FICO or credit score, (680+), you can buy the investment with just your signature, no money down!
If you do not have good credit or you just don’t want the hassle of qualifying for a bank mortgage; say you are self employed or a small business owner, you can usually avail yourself of seller financing with a reasonable down payment.
If you have an IRA or other retirement fund, you can buy the investment with your retirement funds and rake in tax free returns so high they’ll make you blush as you tell your friends about it!
When looking for a high yielding, turnkey investment, you want to make sure it includes:
· Monthly positive cash flow and at least 5 other profit centers
· No management or repair responsibilities
· No violation of the lender’s due on sale clause
· Bullet proof asset protection
· Does not produce a taxable event on sale
If you are not familiar with the meanings of some or all of these terms, you can learn about these and other advanced investment concepts at our blog, http://repg.blogspot.com
You should definitely consider turnkey, signature investments until you have the time or knowledge to go it alone.