I have done a lot of thinking outside the box in my real estate career. I have taught other people in the business to think outside the box. I can imagine that a number of people in other businesses have learned from me that itís good to think outside the box. I have also been working to teach tenants to think outside the box. Just like I am teaching you to use private money to fund your deals, I have looked at ways to allow tenants to use private money to fund their deals.
I have noticed that six out of 10 of my tenants have used private money to fund their first house purchase. They got their parents to help out.
In some cases, mom or dad would buy the house and sell it to their kid with a land contract. Sometime the parents would buy the home for their child outright. This takes a lot of money and probably a lot of love.
A number of parents gave their kids a down payment on the home. This is probably realistic for the parents, the can help give the kids a boost. Often young people donít have a lot of money up front to make the down payment.
Whatever the case may be, it got the child into the property.
That is the goal. You are trying to get people into your homes. If it takes suggesting that they get private money from their parents, so be it.
I have two home study courses available that help you teach people sitting in your houses to use private lending to buy it. They want to own a house but probably donít know how to go about doing it.
My advice would be to buy my home study kits. They are miniature courses but they will help you help them become homeowners and you will put people in your properties.
My current business model in my company is to buy the property, fix the property and sell the property. I really want to avoid a long-term rental. I just donít want it. Itís not good for my business. Repossessed houses for sale are just more lucrative, as is just flipping houses for profit.
We get a lot of calls from people who want to rent. We have to make sure they are tuned into wanting to rent and then buy the property. We need to know if they will be in a position to buy in one year or ever. We need to know if they are motivated. It also doesnít hurt to know if thereís room to suggest that they turn to private lending for a down payment or to buy outright.
The bottom line is to think outside the box and suggest that people around you think outside the box as well.