You are about to learn one of the most UNDERUTILIZED techniques in real estate, it is misunderstood and completely looked over.
It is the structure of building passive income with wholesaling.
Now, this is a more advanced technique. If you are looking at adding this to your tool belt you have probably, in most cases, completed traditional wholesale deals before. Though this is not a prerequisite, it usually helps to have a little more experience in speaking with sellers, buyers, and the title groups closing these deals down for you.
Without any further adieu, This is a slight change in structure to help you close more deals that are tight on numbers, and help you increase your cash flow month to month for years to come!
Instead of taking a flat assignment fee at closing.. you are going to request with your buyer to take payment with a promissory note over time. What this is, in its simplest form, is a promise to pay you “X” amount of dollars with interest over an agreed upon amount of time. You will record this note against the property and you will take a cut of the profit from that property each month.
Traditional Assignment Fee = $10,000 flat one time payment.
To create Passive income: Have a promissory note recorded for the $10,000 over 5 years at 6%…
Your new profit is $11,599 overtime and $193 per month.
Now at first, $193/ month isn’t going to be life changing, but what if you repeat this process 10 times? 20 times? 50 times? 100 times?
Now you have THOUSANDS of dollars flowing into your bank account without any extra work whatsoever. You can even tell your buyer you don’t have to pay me a dime up front! These payments are coming out of the tenants’ pockets, not the investors… so it is… once again… win-win!
Applying this strategy will transform your business from a job to a passive income machine.
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