by Josh Cantwell
The best online real estate courses don’t leave you at the mercy of getting financing. They show you how to become the bank.
But remember this… It has been said that the emotions of fear and excitement cause the same chemical in your body it just depends on your outlook. That would explain why some people find skydiving so thrilling while others break out into a sweat and feel terror just thinking about jumping. It’s all in how you look at it.
Let’s say you’ve done a few deals. Real estate investing has been good to you and you’re wondering why you’d what to mess with a good thing. You can’t deny the thoughts that have been whirling around your brain about how much more money you could make and actually not ever have to buy and rehab a home if you became a lender. No more issues with repairs, sellers, or marketing. Change can be scary, but you find yourself much more excited at the possibilities. It is time for you to start thinking like a bank.
While many people think that banks are just making 4% on a loan they have granted they are actually generating much money for themselves. There is the Vertical Stacking Strategy that provided different options you can incorporate into loans that will increase your yield. An example would be a Short Term Profit:
|Borrower||Lender (this would be You)|
|Interest Paid: 12%||Cash Investment: $100,000|
|$100,000||Interest received $12,000/year|
|Interest Paid: $12,000/year||Profit Received: $20,000|
|Profit Participation: $40,000||Total Received: $32,000|
|Yield: $32K/$100K = 32%|
Profit Participation: you would receive half!
So the borrower is still paying 12% but at the end of the day (or really in this example at the end of the year!) your yield is 32%. Sound good? There are many other vehicles that can be used as part of the Vertical Stacking Strategy that can increase that yield. These are options that banks have to increase their profits and you can too.
There are many other investors just like you and everyone needs one thing to make purchases and that is funding. As a lender you would definitely be in demand. As a lender you would have less risk, a continuous cash flow and would generate passive income. I know what you are thinking right now: “Where do I sign up?”
Funny you should ask. Usually this kind of information is taught only through our online real estate courses. You’ll need to act VERY QUICKLY to get a spot on this free training, if there are any left at all.
Go. Now. http://www.sreccode.com