Today’s REI Classroom Lesson
In the classroom today, Mark Podolsky talks to us about how to set up automatic payments for your raw land transactions. He shares 2 websites that make this automatic and can save a good amount of time.
REI Classroom Summary
With the 2 websites that Mark Podolsky shares, you can take payment (sometimes even a payment from a credit card) with an automated process that makes getting paid easier and quicker.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Mark: Hey, it’s Mark Podolsky, “The Land Geek,” with thelandgeek.com. I’m pleased and thrilled and honored to be the host of REI Classroom. And I want to talk about two ways that we use to get paid on an automated basis.
Mike: This REI Classroom real estate lesson is sponsored by FlipNerd Investor Coaching, your blueprint to investing success.
Mark: So now when I say, “get paid,” because we were selling raw land, there are basically two ways that we do our transactions. The first way and my least favorite way is to flip a parcel of land and make about a 300% ROI. So a typical transaction, because they are distressed, we might buy at 23 cents on the dollar. Somebody owes back taxes, they live out of state, this asset has now become a liability. They accept our “top dollar offer.” We then buy the property 23 cents on the dollar and then we go ahead online and flip it.
So let’s say if we buy it for $10,000, we typically multiply that by 4, we sell it for $8,000, that gives our 300% return. And basically, what they will do then is we can collect a check of $8,000. And we use a company called checkbook.io. It makes it really easy and the fees are only $1.
Now, there are cases where somebody might want to pay you through a credit card. Now, in real estate you can’t get paid through PayPal and Stripe won’t do it either. If you go into prohibited businesses, real estate is prohibited. Now, I know some people are using them, but they are teetering on an edge. But there is a company called Loan Geek, it’s a new company called loangeek.io that will allow you to make a payment via credit card or ACH for real estate. Loan Geek does not disallow real estate. So Loan Geek has an automated platform of allowing you a set-it-and-forget-it system so you can take a down payment if you are doing owner financing, which is the second way we like to get paid.
So let’s say, for example, that we are making a car payment. It’s $249 down, $249 a month at 12.9% interest. Loangeek.io will allow you to put all that buyer information in. You can do a managed loan so you can take the ACH information or credit card information from your buyer one time, set it and forget it, number of payments. They can go online and view their balance at any time. They can make a prepayment at any time.
And what it does it allows you to save you time in the sense that you don’t have to pick up the phone and answer the all-important question, “Hey, what’s my current balance?” And you don’t have to pick up the phone and say, “Hey, I want to make a prepayment. How do I do it?” Or you don’t have to pick up the phone and have to collect money either because that person has been set up into an automated system. Checkbook.io can do the same thing with recurring payments. The only difference is they don’t give you an amortization schedule so you would have to do that math yourself in Excel, which is not the best to do.
So the two really easy ways to get automated payments are checkbook.io and loangeek.io. Very geeky tools because, look, I am Mark Podolsky, “The Land Geek.” Learn more at thelandgeek.com. Thanks so much.
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