From the desk of Susan Lassiter-Lyons
Are you a landlord who’s sick of the daily struggle with the 3 T’s: toilets, trash and tenants?
Are you sick of spending all your profit to make your property ‘rentable’ every time a tenant moves out?
Are you new to real estate looking for a way to create truly PASSIVE cash flow without the hassle of managing tenants?
You’re not alone.
The biggest issue for most real estate investors is understanding that...
Not All Income is Created Equal
In real estate, like most businesses, you can generate transactional income or recurring income.
Transactional income is the one time big chunks of money that flippers and wholesalers make.
Recurring income is that monthly cash flow that landlords and lenders make.
I believe that a successful real estate investing business needs BOTH types of income BUT that recurring income is the true wealth builder.
But not just ANY recurring income.
Passive recurring income. Like TRULY passive.
Remember the Robert Kiyosaki cash Flow Quadrant from Rich dad?
What I'm talking about is going from the left side of the quadrant as a "Self Employed Landlord" to the right side of the quadrant as a true "Passive Investor."
Who Would You Rather Be?
A) John wakes up at 4am on the first day of the month PRAYING that his tenants are on time with their rent. Or that they haven't just disappeared and left a huge mess behind.
B) Bob sleeps soundly every night KNOWING that the money is rolling in without the late night phone calls, disastrous messes and shenanigans that almost all tenants pull.
I chose B several years ago and that’s how I discovered this simple cash flow model.
Hi, My name is Susan Lassiter-Lyons.
I’m the founder of TheInvestorInsights.com twice voted the #1 real estate investing blog and the Amazon #1 best selling author of Getting the Money.
More importantly, I’m an active real estate investor who has closed over 600 deals, has 740 units nationwide and I’ve raised more than $26 million in private capital.
But it didn’t start out that way.
Far from it.
I remember when I started out in real estate back in 1994, I was looking for a way to earn enough income from my real estate ‘side gig’ to replace my monthly income so I could quit and pursue real estate full time.
At the time I was rehabbing and flipping residential properties in Denver and even though I was doing ‘ok’, it was hard to leave my job because the income from flips only happened once every few months.
I had to find a way to create recurring income from real estate.
So, I decided to keep a few of the properties as rentals to create some monthly cash flow stability so I could leave my job.
And you know what that means…
Tenants. Dirty, Irresponsible, Whiny Tenants.
Now I’m sure that there are some landlords who have great luck attracting good tenants.
Unfortunately, I am not one of them.
I think I managed to attract every horrible tenant in Denver…including a guy named Dale.
Dale was a bad guy.
He harassed the other tenants in the triplex, vandalized our laundry room and even threatened me when I charged a fee for a late rent payment.
He called the local zoning office for every little thing…
If the yard was a little brown due to water restrictions in a drought, I got a citation because he complained.
If his unit was damaged because his toilet was leaking (and he let it leak for months without notifying me), a simple $100 repair turned into a $3,000 repair that included mold remediation AND a complaint to the local housing commission.
Luckily, Dale finally left after I refused to renew his lease and I vowed that that I would NEVER manage rentals ever again.
I Decided to Sell My Headache Properties But Keep the Cash Flow
I decided to sell off my residential properties and managed to unload them all … except one duplex.
This was in 2007, just before the mortgage meltdown and investors were having a tough time getting funding for new purchases.
Not only that, but the duplex lost value and was now over-leveraged meaning I owed more on it than it was worth.
I was starting to worry until one of my friends suggested I offer seller financing.
I put it up on CraigsList as a turnkey rental opportunity with seller financing and within MINUTES the offers started pouring in.
I sold the property in 3 days to a couple who were more interested in TERMS than PRICE. (more about this later)
So, I Used a Cool Hack to Finance the Sale That Every Investor Should Know
By “wrapping” the existing mortgage.
This wrap mortgage allowed me to sell the ‘unsellable’ duplex for above market value AND create cash flow out of thin air that came in every month like clockwork.
WITHOUT annoying tenants like Dale.
Once the ‘mortgage payments’ from my buyer started coming in every month like clockwork, I was hooked.
Now, on the surface a ‘wrap mortgage’ sounds complicated.
But it’s not.
It’s a very simple system that’s been used for many years by smart real estate investors.
Both to BUY properties and to SELL properties.
Here’s How a Wrap Mortgage Works…
Let's say I have a property that has a mortgage on it for $80,000 and it's worth $100,000.
I can create a seller carry 2nd mortgage for $20,000 and create a wrap mortgage for the new buyer of $100,000.
This new $100,000 mortgage "wraps around" the $80,000 first mortgage and the $20,000 second mortgage.
My buyer pays on the $100,000 mortgage, I make the mortgage payment on the $80,000 bank mortgage and I pocket the difference aka the loan "spread."
There's the existing loan on the left... and my wrap mortgage on the right...
and my MONTHLY PROFIT...
And you now have a simple way to generate recurring income aka cash-flow WITHOUT tenants.
You Can Easily Go from Landlord to Banker in DAYS Just by Implementing my Simple Wrap System.
No kidding… you’ll be SHOCKED at how quickly properties with seller financing get scooped up by hungry buyers!
How cool will it be to have a few cash flow producing properties automatically and predictably spitting out hassle-free profits for you every month?
Imagine how your life will change in just a matter of days when you’re able to kiss those annoying tenants goodbye forever (see ya, Dale!) and enjoy the peace and freedom that you deserve!
You might be thinking, this sounds great. But why are YOU teaching this?
Here’s the deal…
Since I started in this business in 1994, I’ve CLOSED more than 600 real estate deals.
I’ve done everything from tiny residential deals to multi-million dollar multifamily deals and since I started training and coaching real estate investors in 2009, I’ve noticed several common factors keeping average investors from real success…
- Living from deal to deal
- No plan for sustainable growth
- Doing all the work themselves (remember self-employed vs true investor)
In my business I had already SOLVED these problems.
I transitioned away from ‘transactional income’ only and implemented a sustainable growth plan that included reliable cash flow without the headaches and hassle of tenants.
I Was a BANKER Not a Landlord
And I even found a way to outsource the whole thing!
As a landlord, you either have to manage the properties yourself or pay a property management company an arm and a leg to do it.
And let’s face it; finding a good property manager for single-family homes is like winning the lottery.
But as a banker, it’s easy and cheap to outsource the ‘servicing’ of my loans to a loan servicer.
So I started teaching my simple Wrap System to a few coaching students who were also tired of being landlords and the results were awesome.
Steve Driscoll came to me looking for a way to create truly passive income and he had NO interest in being a landlord. So, we worked on a "buy with private money to sell on a wrap" plan and he's just closed on his 6th house!
And my coaching student Jon Burns put together an investor group to purchase properties just to sell on wrap mortgages that makes more than $3,000 profit PER MONTH.
With both Steve and Jon, I shared…
- How to go from Landlord to Banker so that you can make TRUE passive income month after month.
- How to sell houses fast at above market prices and collect income on them month after month… year after year.
- How to buy houses specifically to resell with seller financing and have your down payment reimbursed by the seller!
If you’re reading this right now it means that you’re in the right place at the right time.
Real estate is HOT and only getting hotter.
If you’re brand new, NOW is the time to get in.
If you’re experienced, NOW is the time to add more properties with less work and more profits.