THE SCENARIO
I've recently been thinking about how to help starting investors, who have a month-to-month cash flow surplus but not a suitcase full of cash, get into real estate investing. This post covers one idea I had to accomplish that goal.
Say I've got a house that's currently worth $90,000. The house is free and clear (i.e. there's no loan on the house; I own it outright). I want to sell that house to Billy for 120 monthly payments of $750, and Billy wants to buy it on those terms. We would structure the sale such that Billy only takes ownership of the house after the last payment is made (using an option or a tool called '
Contract for Deed'), so I retain the rental income and the obligation to insure it, pay property taxes, etc, f...
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