“When Did You Decide to Buy Someone Else A House?”

Hillman-2

When I was in my mid 20’s I was looking at purchasing a really old (1930’s) two story Victorian in rough shape for like $15,000 (a strategy I would never recommend).  The tenant was paying like $600 per month, and she declared with great pride that, “I have lived in this home for 29 years and 11 months, next month will be 30 years, so I’m a very stable tenant!”   My jaw practically hit the floor, and I had to brace myself, because I felt so badly for this elderly lady who was so proud of her stability.

“When did you decide to buy this home,” I asked in my mind, and within my gray matter she replied, “I am not buying the home, I’m renting.”   My retort if I could have gotten it to roll off my lips would have been, “You are buying the house, you just are buying it for your landlord, and not for yourself!”  For her it was too late, she was approaching a fixed and low income retirement.  Her rents would continue to go up, and instead of having an asset, she had become someone else’s asset.

I genuinely felt mortified that nobody had helped her understand the value of home ownership.  However, it did hit me strongly that if I wanted someone else to buy me properties, there are plenty of people out there willing to do it.  In fact, not only will they buy me the house (paying the mortgage) but they can pay for my retirement contribution, purchase me a new car, pay for my annual vacations, my medical insurance, my kids college tuition.  All of that simply depends upon how many people are buying me houses and that I pick the right ones that cash flow at least $300-400 per month!

I prefer to help my tenants build their credit and buy the homes they live in after three to five years.  This allows me to do a 1031 exchange and get into newer properties with better tax advantages (once I have used up most of the depreciation from the previous rental), and it allows me to never deal with deferred maintenance issues that increase my cost of ownership.  By selling to the tenants through an exchange I can buy two new rental properties and possibly double my cash flow, while recapturing tax benefits!

By helping my tenants I have improved neighborhoods (my homes are the nicest in the area) stabilized them – home owners tend to stay longer and take better care of their homes, and helped improve the credit and lives of those I help.  It’s truly good for society, and I make a really nice profit that rolls into the new homes, while allowing the 12-25% cash on cash return to fund the things above.  By the end of 5 years I hopefully have between 60-125% of my down payment back and a capital gains profit that is rolled into two new properties!

Right now we have about 130 turn key properties that our tenants are willing to buy for you!  We believe that the cash flow can build retirement income, increase your passive income so that you don’t have to work so hard, allow you to have a little more fun, or whatever else you choose to do!  Please Click Here To See How This Strategy Works!

For many years I’ve helped coach and train investors as they built passive income portfolios.  Now we’ve taken most of the work and much of the risk out of it.  Feel free to reach out if I can provide value to you!

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