In this episode of The Forever Cash Podcast, I discuss how you can flip land using seller financing without spending any money in order to generate passive income. I explain seller financing – also known as owner carryback or installment contracts.
You’ll learn how you can “become the bank” by allowing your buyers to pay you in monthly installments which will give you income for years at a time.
I also have some tips and tactics for our more advanced students on how they can creatively finance even larger deals.
Learn how to close more land deals in 2021 by registering for our FREE Land Flipping Class starting on Dec 8th HERE
How To Do A Seller Financing Deal Without Spending Any Money
Seller financing is one of our favorite ways of generating wealth with land! The key is to get the buyer to pay for all the costs with a down payment. It also allows you to find many more prospective customers since you lower their barrier to entry.
“When you sell a property such that you allow them to do a down payment and then make monthly payments, the attractiveness of that deal is that you allow them to do a low down payment and a low monthly payment. This is therefore much more affordable for many people.”
Seller financing also allows you to flip land at close to its full value instead of having to heavily discount it.
“You take a $50, 000 property and sell it for $45, 000 and you ask for a 15-20% down payment. It is important to actually structure it such that that the down payment is equal or more than what you need to pay for the property.”
In essence, you “become the bank”. When you get a couple of these deals under your belt, you can eventually replace your entire salary with seller financing deals!
Advanced Seller Financing Tactics
If you’ve already started doing seller financing deals, I have some advanced financing methods to share with you.
If you are short on money for a deal, but have money in your IRA, you can have your IRA or 401(k) buy that property. The profits from this deal will then go back into your IRA and boost your retirement.
If you don’t have access to funds in an IRA, you can borrow money from a lender. You can then take a portion of the income you receive every month and pay it back to the lender with interest.
Another interesting method to look at is selling the note right away. A note is a contract that states that you are owed money from a buyer. You definitely don’t want to do this for your first deal as it requires some coordination. While a deal is still in escrow, you go on note buying networks. You can submit the deal to one of these networks and sell the note right away.
- Find out how to do a seller financing deal
- Discover how you can replace your income with seller financing deals
- Learn about advanced seller financing tactics
Mentioned in this episode
- Learn how to close more land deals in 2021 by registering for our FREE Land Flipping Class starting on Dec 8th HERE https://landflippingclass.com/live-class/register.php?
- Join the Land Profit Generator Community Facebook Group
- Find out more about the Investment Dominator at https://investmentdominator.com/.