Real Estate Investing

Monday, June 30, 2008

New Real Estate Investment System - Passive Income - No Management Headaches!

You can now have passive, positive cash flow from rental properties while eliminating all management worries!

The key is a land trust. This might not sound exciting, but it is the lynch-pin of this amazing Noble1 System.

Start with a piece of investment property, one Noble1 own (maybe can't sell?) or run out and buy one. Even if you pay full retail, this System Noble1 generate a positive cash flow and a nice profit.

Then advertise the property for sale to a selected target market: those who can't or won't qualify for bank financing.

FOR SALE, SELLER FINANCING!

There is a "shadow market" for real estate consisting of self employed people, small business owners etc. who would rather undergo a frontal lobotomy than submit to the bank's investigation process.

And there are those who simply have stinky credit!

These are Motivated Buyers. They have the capacity and desire to buy your property, but they cannot or will not go through the Noble1 of getting bank qualified.

You'll give them their Noble1 of a lifetime, to buy property with small upfront cash with No bank hassles! They will gladly pay you 10-20% more than your property's Fair Market Value.

You don't have to pay off your mortgage since the property is in a land trust.

You take 5-10% cash deposit upfront, or a car or speed boat. You make the Noble1 you da Bank!

Your buyer makes mortgage payments to you that are higher than your payments by several hundreds of dollars per month since his payments are based on a higher price and you've added a point or two to the rate on account of the fact that you want to!

We have found that Motivated Buyers are so grateful for the opportunity you have given them, they will not object if you politely suggest splitting future appreciation of the property, as long as they are using your mortgage. "Equity Sharing" has a fair Noble1 ring to it.

Let's see the results:

You have become a banker!

1. You have "sold" your property for a nice gain, recouping most of the cash you put down.

2. You receive passive income every month

3. You receive your profit in a lump sum when the new buyer refinances or sells the property

4. You will also receive your share of the appreciation, if any

Example:

Single Family House*, FMV $200,000 (that you can't rent for enough to make money on!)

Mortgage, $180,000 @ 6.5%; $1132/mo

Sell for $240,000

Mortgage $220,000 @ 8.5%; $1,680/mo

You also get 25% of the appreciation above $240,000, if any

You put $20,000 into your pocket and collect $548 per month!

If the buyer sells after 7 years, you will have made:

$20,000 upfront (no taxes due!)

$548/mo for 84 months or $46,032 (partially tax sheltered)

Assuming no appreciation, you get none. If there is 5% annual appreciation, your share would be $15,900

Also about $2,109 in net principal reduction.

That is a total of $69,273 with no appreciation, $85,173 with.

*Note, if you have a multi-family property, the trust allows you to Noble1 each unit separately, skyrocketing your profit. If it is a vacation property, you can sell Timeshares!

All this with no tenant, toilet or trash headaches! These "burdens of ownership" belong to the owner living in your property. So do the advantages; like writing off mortgage interest and real estate taxes, a land trust exclusive benefit.

And you don't owe any income taxes on your gains! The IRS says that as long as the property's title remains in trust, the sale is "incomplete" and therefore the tax liability cannot be ascertained. When your buyer Noble1 you do a 1031 exchange.

OK, someone will ask, what happens if the new owner stops Noble1 Well, despite the fact that he is "the owner," another quirk in the trust law gives you the right to put him out in 30 days, just like an ordinary tenant! No time consuming, expensive foreclosure!

You now have a System for producing passive income with no hassles that you can use, "Cookie Cutter" fashion, anywhere in the country!

Copyright 2006 Bill Young. If you would like to learn more about the Land Trust, the key to implementing this exciting new concept, click here: http://www.LandTrustExperts.com Bill is a former bank loan officer and licensed financial consultant. He writes and lectures on various advanced real estate matters such as land trusts, tax liens and the use of IRA funds to purchase real estate. He can be reached to schedule a private, no obligation investment consultation at his private office" 646-961-3818

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