Reply to thread

Message

<blockquote data-quote="Shimmy" data-source="post: 954571" data-attributes="member: 8973"><p>One way to make true passive income off of real estate is to do seller financing.&nbsp; This requires up front work and knowledge of real estate picking the right property in the right area.&nbsp; It also requires you to have lots of cash.&nbsp; I have done this with several properties and made 8% interest on each one.&nbsp; The key is to having a property that they can't destroy more than the down payment would cover if you repo the property.&nbsp; Although if the down payment is too high you wont sell it.&nbsp; This appeals to people who can't get a loan through a traditional bank for whatever reason.&nbsp; I've found that commercial properties are the best because not only are they harder to get loans on but the loans carry higher interest so it makes more sense for them to do seller financing.&nbsp; This varies from area to area of course but in my area commercial loan interest rates are about double of what residential are.&nbsp; The other advantage of doing seller financing is you can usually charge more than you could selling the property otherwise because you open up to more potential buyers who might only be able to buy a place willing to do seller financing.&nbsp; You get a better price buying the property because when paying cash for a property you can usually get a better deal.</p></blockquote><p></p>

[QUOTE="Shimmy, post: 954571, member: 8973"] One way to make true passive income off of real estate is to do seller financing. This requires up front work and knowledge of real estate picking the right property in the right area. It also requires you to have lots of cash. I have done this with several properties and made 8% interest on each one. The key is to having a property that they can't destroy more than the down payment would cover if you repo the property. Although if the down payment is too high you wont sell it. This appeals to people who can't get a loan through a traditional bank for whatever reason. I've found that commercial properties are the best because not only are they harder to get loans on but the loans carry higher interest so it makes more sense for them to do seller financing. This varies from area to area of course but in my area commercial loan interest rates are about double of what residential are. The other advantage of doing seller financing is you can usually charge more than you could selling the property otherwise because you open up to more potential buyers who might only be able to buy a place willing to do seller financing. You get a better price buying the property because when paying cash for a property you can usually get a better deal. [/QUOTE]

Verification