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Are you dreaming of retirement, but you’re worried your nest egg isn’t large enough to allow you to retire comfortably? Or maybe you don’t want to spend all your time playing golf and are wondering how to fill your days with some intellectual and social interaction? Becoming a real estate investor can be a perfect way to boost your retirement funds and provide a stimulating part-time career. Many real estate investment strategies exist, but most require substantial upfront cash or credit and don’t provide steady, passive long-term income. Read on to learn how you can earn life-changing wealth with minimal investment — and make your retirement dreams a reality.
Traditional owner financing means the homeowner (seller) loans the buyer money to purchase their home. The buyer repays the seller in monthly payments, plus interest, similar to a traditional mortgage. The seller earns an income from the interest. This interest can add to several thousand dollars over time since most repayment plans last for 20 to 30 years. Buyers usually make a down payment too, so the seller earns immediate income from that.
If you’re thinking, “I don’t own a home I can sell, nor can I afford to loan a buyer that kind of money if I did,” just wait. The strategy our investors at Owner Finance Academy uses does not require the investor to own a home. We’ll explain!
In our strategy, the seller lends the buyer money by allowing the buyer to take over their mortgage payments. (Typically, the seller can no longer afford the home and needs to sell quickly.) Our investors enter into contractual agreements with the seller and the buyer and guarantee that the seller’s mortgage will be paid on time and in full, even if the buyer defaults. If a buyer defaults, investors can repossess the home and sell it to someone else.
In exchange for that risk, our investors charge the buyer an interest rate above the original mortgage’s interest rate (usually 4 to 5% more). Called the interest rate spread, that 4 or 5% becomes a long-term, passive income for our investors. The buyer makes payments over 20 to 30 years, again, similar to a traditional mortgage. Once our investors repay the original loan, typically within 10 to 20 years, the buyer’s entire payment and interest become pure profit for the remaining years of their contract. That adds up to a substantial amount of money for our investors. Because our investors aren’t tying up their personal cash or credit, they can enter into multiple contractual agreements simultaneously — and this is how they build life-altering wealth.
The strategy we use and teach at Owner Finance Academy is a win-win for all parties involved. Many real estate investors take advantage of desperate sellers and buyers, but we will NOT enter into an agreement unless it benefits all parties involved — the seller, the buyer and the investor. We help sellers avoid foreclosures and get out from under mortgages they can’t afford.
The buyers we work with are typically hardworking people who can afford monthly house payments but lack the credit history or documentation to secure a bank loan. We help these buyers buy their dream homes and provide stability and security for their families. We call this “prosperity with purpose” since we’re earning money by helping others achieve their financial and homeownership goals.
Learn more about how all this works in our blog post, “What Is Owner-Financed Real Estate Investing?”
You may be collecting a pension, Social Security or relying on your investments to carry you through your golden years, but it may not be enough. Medical care costs continue to rise, as well as real estate and the cost of living in most areas. You may also be worried about your descendants and if there will be anything left for them to inherit.
Owner-financed real estate investing can create multigenerational wealth because most contractual agreements last 20 to 30 years. Unlike other real estate investment strategies where investors only earn a one-time income when they sell a home, owner financing offers long-term, monthly passive income that your beneficiaries will collect even if you’re not here.
The strategy we use and teach at Owner Finance Academy doesn’t require investors to dip into their retirement funds. You’re also not tied to a desk or a computer. Investors are free to travel and enjoy the perks of retirement since they work for themselves.
You decide how much time and effort to put into your investment career. Even entering into a few contracts creates lucrative steady income. If your goal is to generate life-altering wealth, you’ll need to spend more time and effort in finding beneficial transactions. Some of our program graduates partner with a spouse, adult child or another family member to increase their income-earning potential and share the workload.
Other real estate investment strategies such as “fix and flip” and “buy and hold/rent” require ongoing involvement and hassles — and frequently, only marginal profit. Our investment strategy creates the highest profit margins of all real estate investment plans. Once your contracts are signed, any ongoing effort on your part is minimal, leaving you free to pursue other interests.
You have many choices for learning how to become a real estate investor. Here is how we differ from many real estate training programs:
We offer introductory and in-depth training programs. The best way to learn if Owner Finance Academy’s real estate investment strategy is right for you is by attending one of our online information sessions.