Investment in Homes: Signature Does Matter!
The biggest setback that an inexperienced investor confronts is nothing but CASH!!!
Every day, numerous investors lose out on their money due to various problems. Most of these so-called ‘real estate investors’ take a deadly plunge into the field without knowing exactly where they are heading to. They take this rather untimely decision when they see every Tom, Dick and Harry rake millions in real estate! Armed with a couple of courses, a couple of books and extreme over-confidence, they come all-prepared to take their chance; to buy rental properties for a significantly high passive income. However, little do they know that they are playing with fire.
Too Little, Too Late
Unfortunately, they don’t realize that one-third of small property owners are chucked out of the business each year by the same problems that they encounter. And when they realize their worst stupidity, it’s unmistakably too late.
This kind of notorious ignorance is best demonstrated by baby sitting tenants. Every month, they desperately end up paying for the privilege through negative cash flow. Ultimately, they suffer inconsolably huge loses on their treasured investments.
However, this could have been avoided if they had taken time to gather more information about certain highly advanced techniques in the field of real estate investments such as triple net leases, trusts and equity shares.
Today, nevertheless, things have become easier. The new real estate investor doesn’t have to spend his precious time or money on study courses to obtain the required information on real estate. The best solution for the new real estate investor is Turnkey Investments that produce high yielding passive income.#idx-price-bar#
What Is a Turnkey Investment?
Turnkey investments could be bought with the investor’s signature alone or with seller financing. In a turnkey investment, a well-experienced real estate professional pre-packages the investment and sells it to the renter. The occupied property yields positive monthly cash flow, resulting in an incredibly huge profit built into the buying price along with an upfront cash payment.
A turnkey investment ensures that the investor is free from all kinds of management, repair or maintenance issues. In this kind of investment, the tenant is contractually responsible to handle all such difficult issues.
These pre-packaged investments give an entirely new dimension to the concept of passive income by making state ownership viable. In fact, if the investor has a significantly high FICO or credit score, (680+), he can buy the investment with his signature alone!
In case the investor doesn’t have a good credit score or is not qualified for a bank mortgage (i.e. if he is self-employed or a small business owner), he could avail seller financing with a reasonable down payment. If the real estate investor has an IRA or other retirement fund, he could buy the investment with his retirement funds and rake up considerably high tax free returns.
A high yielding turnkey investment should necessarily include monthly positive cash flow, at least 5 profit centers, freedom from management or repair responsibilities, no infringement of the lender’s due on sale clause, bullet proof asset protection and should not produce a taxable event on sale.